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Home My WebLink About8.a. Dakota County HRA- Multi-Family Apartment Financing Application � f P O BOX 510 � �.../`�(,( Q 2875-145TH ST. W. �+ a y� RpS£MOUNT. MIN►�FESOTA 55068 OJ��/b� 612-423-4411 ITEM � $ A December 29, 1989 , T0: Mayor Napper Councilmembers: Klassen Oxborough Willcox Wippermann FROM: Stephan Jilk, Administrator/C1erk RE: Proposed Multi - Family Pro�ect Dakota Countq HRA Financing Application Attached find a copy of an application for assistance in financing �or a proposed a�artment cornplex in Rosemount. The applicatian is to the Dakota Countp HRA for them to issue a "Multi - Family Revenue Bond" . Th� city is nat being asked to ass3st in the financing. The pro�ect description is laid out in the application. It is a 36 unit complex propoaed for a site tmap attached) between 145th Street and Dodd Roulevard and ad�acent to Cimmarron Avenue. This proposal has not been presented to the city in any way for consideration. It is the intent of the developers to line up financing through the Conntq HRA before proceeding with a city site plan and other necessary approvals. The purpose for my putting this item on the agenda ts to have the City Council review the concept of the proposed pro�ect and to establish a position on 3t in order to submit comments ta the Dakota County IIRA on th_e financing of the pro�ect. Titis discussion should not be considered the oppnrtunitq to review the specifics of tlie pro�ect, because we don' t have them, The pra�ect witl have to proceed normallp through our city approval process. The County is not asking for endarsement but simply giving the city the oppnrtunity to raise concerns and issues because t}ie pro ject i.s in our community. If the financing is accomplished it does not put any more pressure on the city to approve the pro�ect until and unlsss we are �repared to do so under our review process. lj � .:.� ...,.• _,,,, � I�Ah:C�Tr� C'(�lJ?�JTI' Housin� �CL ��e�j�;t�cic,},tnei�t Atithoriry � ��u��.�.�Sth �i. At' • R��ni.�iint, A1N 45��f��;� �,�? .��3 .��2f�� RECEIVED � � � � �� t�C 2� 1989 � � �ecember 21, 1989 CLERK'S OFFICE CITY OF R4SEMQUN7 Mr. Stephen Jilk, City Administrator Rosemount City Hall 2875 - 145th Street West Rosemount, MN 55Q68 �c vt.., De a r M�d%[Z s'!'�s Pursuant to the HRA review policy for Multifamily Revenue Bond Applieations, I am enclosing for your review, a copy of the Bond Application and Prog�am Document for the proposed 36-unit multifamily project at 145th Street and Cimarron Avenue in Rosernount. We would appreciate receiving any comments you may have regarding this project by the public hearing date scheduled for January 9, 1990, at 5 ; 30 p.m. in the HRA office. Please feel free to ca11 with any questions or concerns . Sincerely, Mark S . Ulf s Executive D rector MSU:dm .`AN EQUA1. OPPO12T11N1'I'Y FMPI,OYFR" v ; ' � � � DAKOTA COUNTY HOUSING AND REDEVEL�JPMENT AUTNORITY MULTI-FAMILY REVENUE BOND APPLICATION 19II8 * * * APPLICANT: CONTACT PERSON: _ Rosemoun . o ino P�rtners Mi�hael W. Conlan ADORESS: TITLE: Denver Kaufman �tice President F. W. Nichols Financia� �;�m�a,�y Popham, Haik, Scfinobrich, Kaufman, Ltd. 330Q_Pi�r Jaffray Tower PNONE NUMBER: Minnea�oli�s. Minnesota 55402 ( 612 ) 829 - 0899 PROJECT LOCATION: PROJECT NAME: 145th and Cimarron Rosemount Townhouses Ros_e_mount, MN * * * PROJECT INFORMATION RENT UNITS One Bedroom $ _p_ Two Bedroom $ _�_ Three Bedroom � 2 Average 36 Parking 72 spaces: 36 surface/36 covered $_,�� _ Laundry Income $5/Unit/Month � 5 OPERATING EXPENSES: �_� of Gross (Annual) Tenants will pay heat and electrie TOTAL PROJECT COST: $ _ 1 .608.156 DEVELOPER EQUITY: $ 258,000 DEBT SERVICE: $__ _122.000 *HARD GOSTS: $ 1_,274x000 LAND VALUE: $ 140.000 SOFT COSTS: $ 334, 156 ANTICIPATED INTEREST RATE5: AMORTIZATION SCHEDULE: IfBthe�—� 30 Year Amortization Schedule? � projeet was conventially financed, what interest rate would Yes No (Cirele One) you expect to pay: *** � Other: 40 *(Hard Costs are all project costs the IRS has determined to be eligible items for depreciation.) *** A forward commitment would be unavailable. A "mini-perm" construction loan might be available at 12 '!z� (2 aver prime) . , ' � - 2 - � SALES ASSUMPTION: DEPRECIATION METHOD: How many years do you plan to hold Years: i8 15 Other the propert before � 15 (Circle One) y you sell . Type: Straight Line A�aeber�e�ermined , years. At what percent do you fee� the Amount of Total Basis: $ value of the projeet will appreciate? 4-5 q per annum EQUIPMENT: Washers/Dryers will be leased $ � of project cost e for equipment (e.g. washers/dryers) ,,. ACRS ON EQUIP(�1ENT? Yes No (Circle One) ANTICIPATED INCREASES: ANTICIPATED VACANCY RATE: Revenue: 5 q per year First Year: � � Expenses: 5 � per year After First Year: �_y CONSTRUCTION SCHEDULE: Anticipated construction commencement date: N1aY 1 , 1990 Anticipated construction completion date: November 1 , 1990 • ADDITIONAL INFORMATION: The development concept is to design and build 36 3 bedroom units for low and moderate families. It is hoped that these units because of rent and desi�n would be attractive to Section 8 Certificate/Voucher Molders * * * I certify that the information provided above is correct and contains no misrepresentations or falsifications, omissions or concealment of material facts and that the infor�ation given is�-�� and complete to the best of my knowledge and belief. - ��- _December 98, 1989 Signat � pate Parcner . • Title � � APFENDIX A Applicant is a Limited Partnership to be formed with five general partners. � . � ! • APPENDIX H Each of the general partners is experienced in the development, finance and ownership of rental housing: low/mod apartments, market rate rental, assisted-living for seniors. . , ' � � EXHI$IT C Leaal Counsel Popham, Haik, Schnobrich, Kaufman, Ltd. 3300 Piper Jaffray Tow�r Minnea�olis, Minnesota 55402 333-480Q Accountant Not Selected Architect Stanle� Fishman and Associates 3 4 8 Pr�.or Avenue North St. Paul, Minnesota 55104 646-1381 Enqineer StanleX Fishman and Associates 348 Prior Avenue North St. Paul, Minnesota 55104 646-1381 General Contractor Currently being negotiated. . . i � APPENDIX D, 1. Partners have an Option to Purchase. Site is currently owned by Goldman family. 2 . Zoning - Multifamily 3 . 1 - 2 new employees will be added to permanent work force. 4. Other financing - N/A 5. According to Mike Wozniak the project will require site plan review by Staff and Planning Cornmission. i � ROSEMOUNT HOUSING PARTNER3 APPENDIX E December 18, 1989 � Mr. Mark Ulfers Executive Director Dakota County HRA 2496 145th Street West Rosemount, Minnesota 55068 RE: Rosemount Townhouses Rosemount, Minnesota Dear Mr. Ulfers: Please accept this letter as our certification that in the event the Bonds are not sold or if the above referenced project is not completed, we will pay all reasonable and necessary expenses and costs which the Dakota County Housing and Redevelopment Authority may incur in connection with the Project, including the fees of Bond Counsel. If you have any questions, please contact me. Sincerely, __ _ � e ver aufm�n � Partner MWC:bas ' : `F.W.MCHOIS FINANCTAL COI�►NY � � I ��/ i777 Washin�ton Avc�nue Snuth � L•.dina,Minnewta 55435 ;' (612)829-0899._ n u.r.F.cc�,F.,ny APPENDIX F December 18, 1989 Mr. Mark Ulfers Executive Director Dakota County HRA 2496 145th Street West ' Rosemount, Minnesota 55068 RE: Rosemount Townhouses Rosemount, Minnesota - Dear Mr. Ulfers: Please be advised that the above referenced project cannot afford to borrow the necessary development funds ta complete construction at current market rates. Tax-�exempt bond financing with below market rate interest is needed because the proposed rents are approximately $150 - $200/month below market. Sincerel , � Mic ael W. Conlan Vice President 829-0899 MWC:bas � , ' NVER KAUFMAN � 1�J 9 O '�'J . HARQL KAUFMAN _ I 19�� •:: 2960 TONKAHA DRIVE WAYZATA, MN 55391 ��.�n�e PAY T(�THE ��,_.l � �� ,.�� _.. ORD R OF _. , � �-�� . .,.... , . . �� DOLLARS VMarquette Bank Minneapolis,N.A. s�n rw w�w.n. � r.tiwoar�w ssuo Memo ` _�/Yy^ . �:09 L000048i: 29 2 ? i ? 23��' S905 ,,�..�.�.�...�-ri..�..� ,:.�..��_..,--..--:�,,.. . ! • PROGRAM POR THE CONSTItUCTION OP A MULTII�AMILF HOUSING DEVELOPM�NT Pursuant to Minnesota Statutes, Chr��ter 462C (the "Act"?, The T�akata County Housing and Redevelopment Authority (the "Antl�ority") ia autharized to develop and administer prograrns to finance the construction of multIfamily housing developments under the circumstanees and within the lirnitations set focth in the Act. Minnesota Statutes, Seetion �62C,07 provides thttt such programs for m�ltifarnily housing developments may be financed by revenue bonds issued by the Authority. The Authority has received a proposal that it approve a program providing for the acquisition of land and cvnstruction of approximately 36 rental apartment units ("Housing Units") by Rosemount Hoasing Partners, a Iimited partnership to be formed by Michael W. Conlan (the "Developer"), located in the City of Rosemount, Minnesota (the "City") on a now-vacant site tocated along 145th Street near Cimarron Avenue (the "Pcojeet"). The acquisition of land and construction of the Project is to be funded through the issuance of up to $1,800,000 in revenue bonds to be issued by the Authority (the "I3onds"). Following construction af the Project, the Developer will own and operate the Project as a multifamily residential rental project. Twenty percent (20%) of the units in the Project will be occupied by tenants whose incomes are not greater than fifty percent (509b) of the area median income (adjusted for family size) in aceordance with the req��irements of Section 142(d) of the Internal Revenue Code. It is estimated tt�at initial rents for the Hvusing Units will average $625 per month. The anticipated date of initial occupancy is November 1, 1990. The Authority, in establishing this multif�mily housing program (the "Program"),. has considered the information contr�ined iri the Authority's 462G Housing Plan (the "Housing Plan"). The Project will be construeted and finaneed pursuant to Subdivisions 1 and 2 of Section 462C.05 of the Act. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: • "Aet" shall mean Minnesota Statutes, Section 4G2C:01, et seq., r�s currently in effect and as the si�me may be from time to time amended. "Adjusted Gross Income" shAll mean gross family income less $75Q for e�cli adult fup to two adults) and less $5U0 for each other dependent in tt�e ft�m ily. "Bonds" shall mean the revemie bonds to be-issued by the Authvrity to finance the Program. "City" shall tnean the City of Rosemount, Minnesota. "Developer" si�all mean I�.osemount Housing Partners, a limited partnership to be formed by Michael W Conlan. "Housing Plan" shall mean the Aut}�ority's 462C Housing Plan, adopted pursuant to the Aet. 1 . ^ � � "Housing Unit" shall mean any one of the �partment unit5, each loeated in the Project, occupied by one pecson or family, and contr�ining complete living fAcilities. "Land" shall mean the rer�l property upon wt�ich the Project is situated. "Program" shall rnean this program for the financing of the Froject pursuant to the Act. "Project" shr�il mean the residential rental housing developrnent consisting of approximately 36 Housing Units, expeeted to be all three- bedroom units and eonstructed by the Developer o�i the Land. Section B. k'ro ram For Financing the Project. It is proposed that the Authority establish this Program to provide financing for acquisition and construetion of the Project at a cost and upon suci� other terms and condition� as are set forth herein and as may be agreed upon in writing between the Authority, the initial purchaser of the Bonds and the Developer. The Authority expeets to issue the Fionds as soon as the terms of the F3onds have been agreed upon hy the Authority, the Developer and the initial purchaser ot the Bonds. The proceeds of the Bonds will be loaned to tl�e Developer to finance the acquisition of the Land and the construetion of the Project, to fund required reserves and to pay the costs of issuing the Bonds. It is expected that a trustee will he appointed by the Authority to rnonitor the construction of the Project and the payment of principr�l and interest on t1�e Bonds. It is anticip�ted that the Bonds shali have a maturity of approximately thirty (30) years and will bear interest at the rate of ?.50 °� per annum, however the Fionds will, of eourse be prieed to the market at the time of issuance. The Authority will hire no additional staff for the administrc�tio►� of the Program. Insofar as the Authority will be contracting with underwriters, legal counsel, bond counsel, the trustee, r�nd others, mIl of whom will be reimbursed from bond proceeds and revenues generated by the Program, no �dministrative costs will be paid fram tMe Authority's budget with respeet to this Program. The Bonds will not be general obligation bonds vf the Authority, but are to be paid only from properti�s pledged to the payment thereof, which may include addition�l security such us additional eollaterai, insurance or a letter of credit. Section C. Loeal Contributions To The Pro�ram. The Developer presently does not anticipate any other local contributions with respect to the Praject. Section D. Standards and Requirements Relatin to the Finaneing of the Pro�ect Pursuant to the Pro�ram. The following st�ndards and requirernents shal� apply with respect to the operation of the Project hy the Developer pursuant to this Program: (1) Substanti�lly all of the proceeds of the sale of the Bonds will be ap�lied to the acquisition and construction of the Peoject and to the 2 __ ' , � • funding af appropriate reserves. The proceeds will be made avr�ilable to the Developer pursuant to the terms of the Bond offering, which will include certain covenants to be made by the Developer to the Authority regarding the use of proceeds and the character and use of the Project. (2) The Developer, nnd any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant beeause of race, eolar, creed, religion, national origin, sex, marital status, or status v+rith regard to publie assistance or disability. (3) No Housing Unit may be constructed in viotr�tion of applieahle zoning ordinances or other �pplicabte land use regulations, ineluding any url�an renswa�l plan ar development distrtet plan, and Incluc�ing the �tate building eode as set forth �nder Minnesota Statutes, Seetion 16.83, et seq. (4) At least twenty pereent (20%) of the Housing Units will be held for occup�ncy by families or inclividuals with gross income not in excess of fifty percent (50%) of inedian family income, adjusted for family size, in order to comply with Federal tax law requirements for tt�e use of tax- exempt finaneing. This set aside will also satisfy the low-ineome occupancy requirements of Section 462C,05, Subdivision 2 of the Aet. (5) Pursuant to Section 4G2C.05, Subdivision 2 of the Act, the Project shall be designed to be affordable by persons and families with Adjusted Gross Income not in excess of the greater of (a) 110 percent of the median family income as �stirnated by the United Str�tes Department of Housing and Urban Development foc the Minneapolis-St. Paul standard metropolitan area or (b) 100 percent of the income limits established by the Minnesota Housing Finance Agency for the City and by other persons �nd families to the extent determined to be necessary by the Authority in furtherance of the �olicy of economic integration. Subsection E. Evidence of Cornpliance. The Authority ma,y require from ' the Developer at or before the issuance of the Bonds, evidence sAtisfactory to the Authority of the ability and intention of the Developer to complete the Project, and evidence satisfactory to the Authority of complinnee with the st�ndards and requireinents for the making of the financing estahlished by the Authority, as set forth herein; And in coniiection therewith, the Authority or its representatives may inspect tt�e relevant boolcs and records of the Developer i� order to eonfirm such ability, intention and compliance. In addition, the Authority may peeiodically require certification from either the Developer or such other persan deemed neeessary concerning compli�nce with various aspects of this Frogram. Subsection F. Issua►lce of Bonds. To finance the Program authorized by this Section the Authority n�ay by resolution autt�orize, issue and sell its revenue bonds in an aggregate principal amount of approximately �1,800,000. The Bonds shali be issued pursuatlt to Section 4G2C.07, Subdivision 1 of tl�e Act, �nd shall be payable pri�narily from the revenues of the Pr�gram authorized by this Sectian. The costs of the Project are presently expected to be as follows: 3 , � � � Land $ 140,U00 Construction, Architect, and Engineering Cvsts 1,274,000 Construction Period Interest, 'I'axes andInsuranee 122,000 Financing Fees 334a 156 TOTAL $1,$70,156 The costs of the Project may change between the date of preparation of this program and the date of issuance of the Bonds. 'I'he E3onds are expected to be _ issued in April of 199Q. __ Subsection G. Severability. The provisions of this Program are severable and if any of its provisions, sente�ees, clauses or para�ranhs shail be held unconstitutional, eor�trary to statute, exceeding the authority of the Authority or otherwise illegal or inoperative by any court of competer�t jurisdiction, the decision of sucl� court shall not af fect or impazr any of the rem�ining provisions. Subsection H. Amendment. The Authority shall not amend this Pcogram, wl�ile Bonds authorized l�ereby are outstanding, to the detriinent of tMe hqiders of such Bonds. _ Subsection I. State Ceiling. $1,800,000 of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended, and Chapter 474A of Minnesota Statutes will be applied for with respect to the Bonds. 4 _ � � . • STR �+�.�+�. • •a.�•��.�raaw�H.�s ; � � � � i / � i , � ; � i I i � � � Q I � � � Q a � I � ;S T W _ Z .• W • � .. 4 _ . . ,. . . �� i �� • �• • i •�•• � � •�•• � � � •�� t •� • :,�F��.