04/18/2016 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
MONDAY, APRIL 18, 2016
11:30 A.M.
CITY HALL
SECOND FLOOR CONFERENCE
AGENDA
I. AGENDA ADOPTION
II. AFFINITY APARTMENTS CEDAR GROVE DEVELOPMENT UPDATE
III. PUBLIC FINANCE POLICY UPDATE
IV. OTHER BUSINESS
V. ADJOURNMENT
Agenda Information Memo
Finance Committee Meeting
April 18, 2016
II. UPDATE AFFINITY APARTMENTS AT CEDAR GROVE UPDATE
DIRECTION TO BE CONSIDERED:
To discuss a request by Inland Development to postpone closing and construction for
the Affinity at Cedar Grove project until spring of 2017.
FACTS:
• Inland Development received preliminary PD and preliminary subdivision approvals
in 2015 for a 173 unit, 55+ active senior rental project on outlot A at Cedar Grove.
At that time, the expected timeline was for the company to close on the property
this spring and begin construction with occupancy expected in the latter part of
2017.
• Since that time, Inland has met with Building Inspections regarding permit and
construction requirements, but has not completed the development agreements,
final PD or final subdivision.
• In March, Inland contacted staff proposing to complete the planning items and allow
the earnest money to become non-refundable, but asking for permission to amend
the purchase agreement to permit closing to occur and construction to begin in
2017 for occupancy in 2018.
• Staff and the City Attorney held a conference call with the Inland team and learned
that they have multiple projects going forward in 2016 and they believe they are at
capacity for the remainder of the year.
• It does not appear that Inland would add the Cedar Grove project back into the mix
for this construction season, but it is possible they would consider options that
would minimize the City's exposure and/or make the City whole through a valuation
agreement or other means.
• If the Committee determines the delay with Inland is not advisable, the purchase
agreement may be terminated and the master developers could be directed to
market the property again. Staff and the City Attorney will provide additional
background at the meeting on Monday.
ATTACHMENTS: None — Information to be provided at meeting.
Agenda Information Memo
Finance Committee Meeting
April 18, 2016
III. UPDATE PUBLIC FINANCING ASSISTANCE POLICY DISCUSSION
DIRECTION TO BE CONSIDERED:
To discuss further the priorities for public financing assistance and possible additional
options for such assistance.
FACTS:
At its meetings on September 22, 2015, January 13,2016 and February 25, 2016, the
Finance Committee reviewed the City's Business Assistance Policy, which was last
updated in 2014. The Committee discussed policy issues further, but did not
recommend any amendments at that time. The Committee indicated an interest in
continuing to discuss the policy at its future meetings and with the full EDA at the
appropriate time.
• This business item will permit a continuation of that discussion.
ATTACHMENTS: None — Information to be provided at meeting.