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HRA 02/11/1988 - 6516 (2)I- Jacobson Consulting, inc. DEVELOPMENT FINANCE SERVICES FOR THE PRIVATE & PUBLIC SECTORS February 2, 1988 Mr. Jol i L. Robertson Executive Director Fridley HRA Civic Center 6431 University Ave. NE Fridley, MN 55432 Subject: Fridley Market Rate Rental Housing Project Tear Mr. Robertson: It was a pleasure mseting With You on January 29, 1966. It is my ju derstandi W treat You desire to leave, in writing, my impressions of the project Mr. Lundgren has proposed in Fridley. As you are aware, I am acting as a consultant tk-y Mr. Lundgren in regAnj to financial strrylct1_1ri2i17 acid pacla-,zing. MY extensive background in municipal planning and financial structuring (especially using various tools available to Cities and HRA's) has been iz^-.1 in deterrniriirig the appropriate package for Mr. Lundgren is seeking. As part of my evaluation process, I have reviewed the financial projections provided by the Maxwell croup and modified these projections to reflect MY professional judgement regaildhIg this project. My findings are sue barised as follows: 1) Tly-- financial package which consists of a lenders coMitrr eiit in tree: amount of $7 , 252 , 000 , the eq? �itY commitment of up to $1,o00,000 from the Thompson Companies and tlY-- equity contribution from Mr. Lu idgren an spnd fully o t1ie d r i � - funding required for this project provided that an additional contribution of $850,000 is obtain- fl the Fridley HRA. 2) Tlie proposed repayment terms on tree $850,000 BRA financing, if scheduled to begin 49 months from the date of closing with principal and interest repaid to the HRA in tree following eleven years, results in a reasonable and prudent level of debt service coverage for bath primary debt as well as secondary debt if a 8.5% interest rate is applied CX1 tly-- HRA portion. 3) It should be iiot� trot tiie proposed HRA repayment scryN,iiIle begins four years after closing, which will be effectively two and one ]calf YewS after constrix!tion completion. 327 WEST LAKE STREET, CHISHOLM, MN 557191218) 254-2124 MAILING LIST SP #80 -13, Walter J. Milder second accessory building Hilary L. and Doris J. Mayers 969 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. John Kurak 6547 Oakley Drive N.E. Fridley, Mn 55432 Mr. & Mrs. Peter Eisenzimner 6535 Oakley Drive N.E. Fridley, Mn 55432 Mr. & Mrs. Jeffrey Gustafson 6558 Oakley Drive N.E. Fridley, Mn 55432 Donald Swanson 6550 Oakley Drive N.E. Fridley, Mn 55432 Mr. & Mrs. Ronald Bloom 6542 Oakley Drive N.E. Fridley, Mn 55432 Mr. & Mrs. James Tauer 6534 Oakley Drive N.E. Fridley, Mn 55432 Mr. & Mrs. Fredrick Brandt 953 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. Walter J. Miller 945 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. Edward Berntson 925 Mississippi Street N.E Fridley, Mn 55432 Jeffrey R., Timothy L, and Robert J. Gustafson 935 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. Wayne Brodal 931 Mississippi Street N.E. Fridley, Mn 55432 Planning Commission 1/20/81 Mr. & Mrs. Gary Lofquist_ 891 66th Avenue N.E. Fridley, Mn 55432 Mr. & Mrs. Gerald Johnson 6475 Able Street N.E. Fridley, Mn 55432 Mr. & Mrs. Dell Quimet 932 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. Peter Viger 952 Mississippi Street N.E. Fridley, Mn 55432 Mr. & Mrs. Warren Swenson 968 Mississippi Street N.E. Fridley, Mn 55432 1U Planning Commission Meeting — May 4, 1977 Page 17 14 P 6. A triangular street and utility easement over the southwest corner of lot 4, for future street and utility purposes, the dimensions of which to be determined by the Engineering Division and property owners prior to submission of final plat. As Mr. Boardman read each of the stipulations, he clarified some of the statements to be sure that everyone clearly understood each point. Mr. Bergman wanted to know if the Engineering Department's recommendations for deainageseasemenbs ±and systems would be an improvement from the present flooding situations. Mr. Boardman said that it was his understanding from Engineering that what they were basically doing was taking what was - already existing, obtaining easements, and gettigg a utility and drainage easement centered over the common line between lots 4 and 5, to allow Lot 4 to be built and also to get drainage out to the Polk Street storm sewer system. Mr. Boardman didn't know if the Engineering Department felt that this system would be better. All Mr. Boardman knew was that they planned to maintain the existing system until there was further development in the area. He continued to say that if there was to be an additional re -plat of the property, then something would have to'be done with the storm sewer system in the area to handle the additional drainage. He said that there was presently a ponding area on the property because of- the - neomplete development. Mr. Bergman indicated that the reason he asked the question was that it was his impression that it was not specifically part of the requestor's intent to improve on the flooding problem. Mr. Iwen wasn't aware that there was a flooding problem. Mr. Bergman indicated that he felt that it was the time to address that problem. Mrs. McKinley wanted to know what flooding problem Mr. Bergman was talking about. Mr. Bergman said that she had commented about having water in her basement. Mrs. McKinley said that there had been no problem in the last few years because the pond had been low. Mr. Peterson wanted to know if Mrs. McKinley had water in her basement in 1975.