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, ,. <br /> � Orono City Council <br /> � <br /> Committee of the Whole <br /> January 26,2010, 6:30 p.m. <br /> Orono City Council Chambers <br /> Present: MayorJim White, Council Members Cynthia Bremer, Lili McMillan and Jim Murphy; Assistant <br /> City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson <br /> 1. Common Bond Discussion Regarding Property Behind Long Lake Fire Station <br /> • Ellen Higgins,Vice President of Development for Common Bonds Communities, provided an update <br /> on progress of the potential workforce housing project including use of the property,designs, City <br /> participation and benefits of the project to the City. <br /> • Common Bond has been working with an architect from UrbanWorks on a number of different <br /> concepts as well as putting together a financing package and reviewing marketing studies. <br /> • A meeting was held with the Miller family regarding the property to the north of the fire station. <br /> The family is willing to discuss selling the property and considers the project a benefit to the <br /> com m u nity. <br /> • The financial package includes equity, mortgage and soft funding. Minnesota Housing Finance <br /> would probably be the main equity piece, mortgage with Wells Fargo, as well as 5 other funders for <br /> soft funding as follows: <br /> o Hennepin County Home Fund <br /> o Met Council—$300,000 <br /> o Hennepin Home—$500,000 <br /> o Hennepin County CDBG—$125,000 <br /> o Minnesota Housing Challenge Funds—$500,000 <br /> • A key financing issue is if the developer can negotiate a below marketplace price for the property or <br /> if the city will consider a donation of property. <br /> • The following investors have shown interest in the project: <br /> o Wells Fargo (took over Wachovia Bank) <br /> o Enterprise Community Partners <br /> o Berkshire Hathaway <br /> • Murphy questioned if Common Bond had ever done a long-term lease of property. Higgins <br /> indicated they have, but the funding is more complicated. <br /> • The City lot is 3.4 acres with only 1.65 acres of buildable area. It is crucial to come to an agreement <br /> with the Millers to have a large enough building site. <br /> • Financial benefits to city: <br /> o If the City donates or reduces the property price,the developer will pay SAC and WAC charges. <br /> o Property that is currently off the tax rolls would be put back on tax rolls. <br /> o Property would not be assessed at the full value because it would be classified as affordable <br /> housing($45,000 would come back to the City in taxes). <br /> • Todd of UrbanWorks Architecture presented a general site plan and three design options. <br /> o He noted that access would be off of Fire Drive. The south side of the site includes a wetland <br /> and utility easement. <br /> o The project proposal includes 42 townhomes or apartments with two-thirds of the units with 2 <br /> bedrooms and one-third of the units with 3 bedrooms. One enclosed parking stall and one <br /> surface stall are proposed for each unit. Square footage of the 2-bedroom units would be <br /> approximately 1200 s.f. with 1 % bathrooms. <br /> o Option A <br /> - 42 townhomes in a configuration of 4 distinct 2-story buildings, a center commons area <br /> including tot lot, and access closer to the bridge. <br /> Page 1 of 4 <br />