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opportunities, it is in the City’s best interest to repay as much of the principal loan amount as possible. <br />There are no other avenues to replenish the City’s Municipal Redevelopment Fund, except to borrow <br />from it and repay with interest (as we are doing) and/or levying for additional funds. <br /> <br />Another financial factor to consider is whether APi would be willing to make yearly payments to reserve <br />their option for three years. These payments could be based on lost tax increment had they built their <br />third building in 2017. These payments could be directed towards the purchase price, or not. Ehler’s <br />will be prepared to provide a monetary figure at the meeting should the Commission request that <br />information in making a recommendation. However, there would still be some uncertainty at the end of <br />three years whether or not APi would be ready to build a third building. It is also unknown what the <br />market conditions would be at that time. <br /> <br />Other Development Interests <br />The City is aware of other development interests for this block, specifically for either townhome or <br />multi-family housing. The biggest interest is from a multi-family housing developer who would be <br />interested in constructing an approximate 70 unit building, four stories high, with underground parking. <br />This developer is specifically interested in providing these units to families making at or below 60% of <br />the area median income. This is similar to the 12 Pulte townhomes that were reserved for families at or <br />below 80% of the area median income. As the Commission may note with regard to the dashboard <br />discussion, market values for multi-family housing are doing very well. It is certain a 70 unit multi-family <br />housing development would generate far more tax increment than a 30,000 SF office building. A <br />concept drawing was submitted by this developer and is attached to this memo. Ehler’s will be <br />prepared to provide the projected tax increment these two development prospects might generate, <br />compared to the 30,000 SF building APi originally anticipated building in 2017. <br /> <br />Again, staff is looking for the Commission to make a recommendation that can be forwarded to Council <br />on whether the City should entertain a three year option extension (or not), and if so under what terms. <br />Staff and Ehler’s will be available to address questions. <br /> <br />Attachment <br /> Concept Multi-Family Housing Development <br /> <br /> <br />