10-08-2001 Council Minutes - Laserfiche WebLink

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ORONO CITY COUNCIL MEETING MONDAY, OCTOBER 8, 2001 • 8. #2640/41 Dunbar Development, Inc., 2060 Wayzata Boulevard —Final Plan Review — Status Update Gaffron stated that the Dunbar senior housing/office building project approval process was nearly complete, and final Council actions were scheduled for the October 22 meeting. The senior housing unit was proposed as Phase 1 of the project, and construction would start late this fall. The office was proposed as Phase 2, and construction would likely begin sometime in 2002. HUD financing had not yet been approved, so the developer had pursued a private underwriter for the senior housing revenue bonds. The City would acquire the land for $1.00, and lease it back to the developer for $1.00 per year for 99 years. Park and utility connection fees would be deferred for as long as the property was used for senior housing. Because the interest accrued on the deferred fees would come to $160 million at the end of 99 years, Gaffron suggested the Council might want to consider other options. The watershed district approval was pending and should happen on October 25. The Met Council approval should come on October 24. As part of the TIF financing, the City would be responsible for a number of off -site improvements, such as: street lighting, sidewalk improvements, turn lane improvements, installation of the semaphore, and a minor upgrade to the sewer lift station. Frank Dunbar stated they were looking forward to starting construction on the senior housing in early November. They needed the zoning issues and the leasing with the City • completed in order to continue with the underwriting process. He had not withdrawn the HUD application, but HUD processing was moving too slowly. He stated the project had not changed since it was last presented to Council. Dunbar passed around samples of the building materials to be used on the senior housing building. He will be using a new concrete siding product, and passed around an article on the siding. In terms of site work, he noted they will first nstall the silt fence, and take down all the trees south of the fence. The roof should go on in April or May. The building will be ready for occupancy next October. They were hoping to save some of the trees to screen the building from the Brown/ 12 intersection, but Mn/DOT has required them to move a sewer line, which takes out the trees they were hoping to save. The downed trees will be replaced with 8 – 10' trees. Dunbar stated he would meet with neighbors on -site to discuss landscaping issues before starting construction. He stated the office market was down. They had no big users lined up to move into the office building. They had a request to build an assisted living complex on that site. He stated that if he has to pay the full amount of deferred fees at the end of 99 years, it would affect his financing and rent rates at the present time. He had signed a contract with Miller Johnson to sell bonds to finance the site before the company received bad • press. They assured him that the issue was not serious and was with their clearinghouse, 8