6.3. SR 02-11-2013 - Laserfiche WebLink

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MHFA competition, like the 9% program does, but still must adhere to MHFA scoring requirements. Although Section 42 Senior housing projects have not usually been financially feasible, the economic problems facing the housing industry can actually help in this instance because costs can be significantly reduced. The developer that originally sold us the lots is willing to discount them by more than 50%. The subcontractors are able to give us exceptionally good prices because they need the work and the mortgage interest rates are less than 41, an all-time low. The project also requires TIF assistance to achieve the targeted rents and is actually required by MHFA in order to meet scoring requirements for the 4%tax credits. We have developed 17 one-level Senior projects during the past 20 years including Elk Run Village in Elk River. Six projects have been Section 42 tax credit projects similar to the one we are now proposing. In summary, we are requesting from the City approval of our proposed Dlackhawk Woods Senior development. We are familiar with the City's standards for building design and products and will meet those standards. The property is already platted into townhouse lots, which will accommodate our design, so no further zoning or platting approvals will be necessary. We will need tax increment financing approval from the City, which will provide the project with necessary resources to meet the requirements of MHFA. This would be a pay as you go TIF program so would not require a financial commitment from the City. The existing lot taxes would continue to be paid and in addition,the City would collect 10% of the increment amount. Because there will be no children living in the development,there will be no negative impact on schools or parks. Thank you for considering our proposal. Respes fully, G /;?c, er Derrick g k Senior 30, LLC Chief Manager