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of a lawsuit against the City of Eagan and the Metropolitan Council, is the housing affoidability <br />issue. In response to this new information, it is necessary for the City to proceed with due diligence <br />to ensure it properly reviews the housing affordability issue. Although Mr. Hassler indicated you <br />have a housing affordability consultant, he did not identify any specific plans or efforts for mairing <br />any units affordable. It is important that you determine whether a number of the loft units could be <br />made affordable by reducing the size and limiting internal amenities, in conjunction with financial <br />assistance that may be available through your consultant ’s efforts. It is also important that you <br />determine udiether a number of the two-story townhouse units could be substantially reduced in cost <br />by reducing the size, limiting internal amenities, and leaving substantial living spaces unfinished (i.e. <br />the second floor). <br />The City needs to review the housing affordability issue, both from a city-wide perspective and as <br />it relates to this site, in light of the Eagan lawsuit, to determine whether it is necessary to add an <br />affordability component to your development concept. This process will take us beyond the August <br />26,2002 Council meeting, which requires an extension of the 60 day limit. Your willingness to <br />provide an extension through the September 23,2002 Council meeting would enable a reasonable <br />time line for the City to complete its review. Please provide a letter at your earliest convenience <br />regarding the extension of the review time line. <br />Ronald J. Moorse <br />City Administrator <br />cc Steve Johnston <br />Bruce Malkerson <br />Orono Plaza Partnership <br />a