MPG 5-1-01 Draft - Laserfiche WebLink

Home Browse Search

0 Developer for the Senior Housing component, via Tax Increment Financing. Under the terms of this agreement and the laws of the State of Minnesota, certain costs to be incurred by the Developer are eligible for TIF reimbursement, and certain additional costs to be incurred by the City in direct relation to the Senior Housing Building component are eligible for TIF reimbursement. 15. City Intent for Senior Housing Building Component. It is the intent of the City of Orono that the Senior Housing Building be used for the purpose of senior housing for the longest practicable period of time,and during that time the building shall be owned and operated by a non-profit corporation. During the 20 year life of the TIF funding as described below,the Developer/Owner will be required to limit the rental price of 20% of the units, and all 62 units shall be used only for senior housing. Additionally, in order to maximize the length of time that the City can exert control over the use of the Senior Housing for its intended purpose, the City intends to purchase Lot 2, Block 1, Orono Woods Addition from the Developer prior to the commencement of construction for the sum of$1 (one dollar) and other good and valuable considerations. The City will then lease said Lot 2 to the Developer/Building Owner for a period of forty(40)years,equivalent to the proposed HUD bond repayment period. The lease shall include the following general terms: 1. The lease shall be written to prohibit rental to other than seniors during the term of the lease. 2. The City will defer certain up-front development charges for the term of the lease, such charges to include Sewer and Water Connection Fees in the amount of$40,838 and Park Dedication Fees in the amount of$161,200 that would otherwise be due at the time of development. 3. At the end of the 40-year lease term, the City will sell Lot 2 back to the Developer/Owner for the sum of$1. The deferred amounts plus 7% interest compounded annually shall be due and payable to the City at that time, except that the Developer/Owner may further extend the deferral period in 5- year increments by contract with the City. 4. In the event that the City is unable to acquire Lot 2,it is the City's intent that a covenant be placed on Lot 2 that provides for the same use limitations, deferrals and extension as represented immediately above. 16. Developer Representations and Covenants. The Developer makes the following representations and covenants: (a) The Developer has the legal authority and power to enter into this Agreement. Page 8 of 16