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Development Subsidy History <br /> April 19,2010 <br /> Page 3 <br /> Tax Increment Financing Housing Tax Increment District 1-1 was created during <br /> 2001 to provide assistance for the Orono Woods Senior Housing development. The <br /> development receives 90% of the increment on a pay-as-you-go basis for twenty years. <br /> This has resulted in a tax increment return to the developer averaging approximately <br /> $43,000 per year to date. Twelve units (20%) of this 62-unit project were originally <br /> reserved for seniors ages 62 and older with incomes less than 50% of the median <br /> household income; the minimum age was lowered to 55 in 2006 by action of the Orono <br /> HRA at the request of Orono Senior Housing LLC. <br /> Additionally, the City is owner of the land on which this building is constructed, and the <br /> 100-year lease to the developer ensures the continued use of this building for senior <br /> housing past the expiration of the 20-year TIF financing program. The following excerpt <br /> from the PUD-2B Development Agreement documents the basis for and conditions of <br /> City ownership of the land: <br /> "15. City Intent and Conditions for Senior Housin� Building. It is the intent of the City <br /> of Orono that the Senior Housing Building be used for the purpose of senior rental <br /> housing for persons age 62 and older for the longest practicable period of time, with <br /> rental priority given to area residents. In order to achieve this intent, the Developer <br /> agrees to the following conditions which are hereby established as part of this PUD <br /> Agreement: <br /> (a) In order to maximize the length of time that the City can exert control over the <br /> use of the Senior Housing for its intended purpose, the City intends to purchase <br /> Lot 2, Block 1, Orono Woods Addition from the Developer prior to the <br /> commencement of construction for the sum of$1.00 (one dollar) and other good <br /> and valuable considerations. The City will then lease said Lot 2 to the <br /> Developer/Building Owner for a period of ninety-nine (99) years, at an annual <br /> rent of$1.00. The lease shall include the following general terms: <br /> l) The lease shall be written to prohibit rental to other than seniors during <br /> the term of the lease. <br /> 2) At the end of the 99-year lease term, the City will sell Lot 2 back to the <br /> Developer/Owner for the sum of$1.00. <br /> (b) During the 99 year term of the lease,the building shall be owned and operated by <br /> a non-profit corporation. <br /> (c) During the term of the TIF funding as described in this document, the Developer <br /> shall limit the rental price of 20% of the units per the TIF Agreement, and all 62 <br /> units shall be used only for housing of seniors age 62 and older, with rental <br /> preference given to Orono residents, per the terms and conditions of the "Senior <br /> Housing Restriction" and the "Orono Preference Requirement" as stated within <br /> that certain document entitled "Development Agreement Relating to Orono <br />