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. � <br /> MEMORANDUM 3-9-10 Work Session <br /> To: Mayor and City Council <br /> From: Mike Gaffron, Asst. City Administrator <br /> Date: March 8, 2010 <br /> Subject: CommonBond Update <br /> Attachments: <br /> A - Letter of Introduction <br /> B - CommonBond Proposed Schedule (no change from prior information) <br /> C - City Letters of Support <br /> D - 3/3/10 Staff Letter re Application Process <br /> E - Draft Purchase Agreement <br /> F - Statute re: Sale of Land (related to Comp Plan) <br /> G - Responses to Ron Miller Questions <br /> Letter of Introduction At my request CommonBond has provided a Letter of Introduction of <br /> their proposed workforce/affordable housing project (Exhibit A). This was requested because <br /> to date, almost all communication regarding this project has been on a relatively informal basis. <br /> This informality stems from the fact that the site is not yet guided in the CMP for the proposed <br /> density and type of housing, although the proposed location is being reguided for multi-family <br /> residential use at up to 15 units per acre. No formal application can be submitted until the CMP <br /> Update is complete and approved. <br /> Schedule To date the City has provided CommonBond with three letters of support in their <br /> quest for housing grants. Copies of those letters are attached. CommonBond's proposed <br /> schedule for moving forward is based on their Minnesota Housing grant application deadline, <br /> June 17. That application requires them to include purchase agreements for the land, as well as <br /> evidence of appropriate zoning. As noted in my letter of March 3 (Exhibit D), formal rezoning <br /> does not normally occur until the final approvals are granted for a development project, which is <br /> not likely to occur until sometime after June 17. Whether preliminary plat and concept plan <br /> approvals can be completed by June 17 is questionable. <br /> City Property An additional element that needs to be resolved with some immediacy is whether <br /> (and if so, how) Council intends to make the City property available to CommonBond. <br /> CommonBond has at my request drafted a Purchase Agreement in order to provide a starting <br /> point for discussion. The selling price has not been entered. <br /> If Council determines that the property should be made available to CommonBond, options for <br /> that may include: <br /> - Direct sale at fair market value (What process do you want to use in establishing a value <br /> or selling price for the property - Appraisal? Contact a realtor?) <br /> - Direct sale at below market value, or provide the land to CommonBond at no cost <br /> (Soren indicates this may be possible only in conjunction with a business subsidy <br /> agreement) <br /> - Long-term lease (similar to the 100-year lease of the Orono Woods Senior housing site) <br /> - Other? <br />