11-25-2002 Council Packet - Laserfiche WebLink

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mm Dahlstrom Development LLC #02-2789/02-2840 ‘Stonebay’ Final Development Plan Review October 18,2002 Page 9 t Commercial Outlots Development Viability. The applicants were requested to submit for the record a conceptual diagram showing that the two commercial outlots could be developed for their intended purpose. That concept sketch is included as Exhibit C-3 for demonstrative purposes only, and is not to be construed as either a proposal or as an approved development plan for the Outlots. Housing Afibrdabilitv: Potential City Contributions . Staff and applicants met in early September with Donald Solie of US Bancorp to discuss the financial aspects of making housing afft^rdable. Please review the Affordable Housing Proposal dated September 18, 2002 by Terry Dahlstrom. Staff concluded that the ability to create affordability within the types of units proposed likely woul involve a partnering between the City and the developer. Because the sales prices of the units are above most accepted definitions of affordability, the developer is proposing that a small number of units be priced at the Minnesota Housing Finance Agency’s ‘Community Activity Set Aside’ (CASA) program maximum level of $199,000 (or whatever level the CASA program sets in future years). The CASA program provides special financing to qualifying homebuyers. The developer ’s proposal is to provide one of the following options; a) Two condominium units and two 2-story townhome units affordable at the CASA maximum; or b) Three two- story townhome units at the CASA limit. The developer proposes that Orono contribute funds/resources equal to 15% of the CASA maximum, i.e. approximately $30,000 per unit. Potential methods for the City to contribute might include the following (estimates only): - Waiver of park dedication fees: - Waiver of sewer and water connection charges: - Waiverofstormwatertrunk fees: - Waiver of building permit/plan review fees: $3250 per unit $3500 per unit (conversion from acreage basis to unit basis) $1400 per unit (conversion fr'om acreage basis to unit basis) $2000 per unit It should be noted that the Council ’s conversion of the 1989 Highway 12 Sewer & Water connection charges from a “per-unit” to a “per-acre” basis for fee calculation has resulted in a great savings to any developer of the Hi^way 12 area properties benefitted by the 1989 sewer and water improvements. This fee structure was established not merely to accomplish repayment of the bonds on the 1989 projects based on the vacant acreage remaining to be developed in 2000, but to also have the positive effect of reducing the unit connection fees to a level that might allow for development of more affordable housing at the higher densities planned for the Highway 12 area. Had this fee structure not been recently changed, applicants would be paying approximately $ 10,500 per S & W unit rather than the $3500 per unit at the 6 unit per acre density of Stonebay. This could be considered as an already- realized $1,169,000 contribution by the City ($7,000 x 167 units)...