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c <br />( <br />Ai-1 <br />September 18,2002 <br />Mr. Ronald J. Moorse <br />City Administrator <br />City ofOrono, MN 55356 <br />RE: Affordable Housmg Proposal for the Orono Development <br />2550 Wayzata Boulevard <br />Dear Mr. Moorse, <br />As per our discussions with you and the City of Orono staff members, it has been mutually <br />acknowledged that our housing sales prices are above what is considered affordable by any of the <br />present definitions of affordable housing. Nonetheless, we will work with the City of Orono to <br />jointly place several of our condominium units or two-stoiy townhome units at a sales price that <br />will meet the definitions of “CASA Affordable Housing”. Presently the Minnesota Housing <br />Finance Agency (MHFA) Community Activity Set Aside (CASA) program has a inaxitnitm sale <br />price of $ 199,000.00. We propose that the City of Orono and Dahlstrom Development LLC <br />together contribute funds and resources to aid reduction of the sales price of several units to meet <br />the CASA ma.ximum limit. <br />After reviewing our development site plan and the present CASA limits, we will, at our <br />discretion, provide one of the following two options: Two (2) condominium units and two (2) <br />two-story townhomes units for sale at the CASA maximum limit or, alternately, three (3) two- <br />story townliome units. The locations of the units for the two options have yet to be determined. <br />These units will be built to a similar design will be slightly smaller in size than the related <br />condominium or two-story townhome counterparts. Our proposal and anticipated contribution of <br />funds or resources by Dahlstrom Development and the City of Orono are outlined below. <br />The sales price of these units will be the maximum sales price limit of the CASA program in <br />effect at the time these units are placed for sale. The City of Orono will contribute funds or <br />resources equal to 15% of the effective maximum CASA limit sales price at the time of <br />completion of the units, and will apply these funds or resources to help reduce the sales price of <br />these units. Dahlstrom Development LLC will make up the difference in the actual cost to <br />reduce the sales price to said maximum CASA limit in effect. <br />With joint participation, we feel that this affordable housing proposal can be implemented within <br />our development. The affordable housing proposal may necessitate participation by the City of <br />Orono in the filing of applications to outside agencies and cooperation with Dahlstrom <br />Development in identifying and structuring any special requirements that will allow the <br />designated units to be restricted to persons that meet affor^ble housing guidelines. <br />We appreciate this opportunity to work with the City of Orono. <br />Sincerely, <br />Dahlstrom Development LLC.A <br />? <br />1 <br />•I <br />1