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HomeMy WebLinkAboutIV.D.2 - Project Timeline - River CityRiver City Properties – Luke Siewert – Development Timeline  November 12, 2020 HEDRA Meeting – Siewert presented concept plan for development. Request for sale of land for $1. Staff supported market rate sale of $55,800. No formal action requested or taken.  January 14, 2021 HEDRA Meeting – Siewert presented an updated concept plan. Further discussion on land price.  February 11, 2021 HEDRA Meeting – HEDRA approved a resolution providing exclusive rights of sale to River City until May 31, 2021. Further discussion on sale price; Commission not comfortable selling property for $1.  April 8, 2021 HEDRA Meeting – Commission adopted motion on a 5-2 vote (Braucks and Sullivan, nay) to direct staff to draft an agreement to sell the property for $1.  May 13. 2021 HEDRA Meeting – Commission authorized signature of the Contract for Private Development between River City and HEDRA. River City must receive City Council approval to construct the building. Closing must occur prior to August 1, 2021.  June 10, 2021 HEDRA Meeting – Public Hearing held to consider sale of property.  July 16, 2021 City Council – Approved submittal of a $250,000 grant to Dakota County CDA to assist in site development.  July 29, 2021 HEDRA Meeting – 1st Amendment to Agreement extending the closing date until December 3, 2021 to allow for land use approvals by City Council.  October 4, 2021 City Council Meeting – Approval of land use applications for construction.  November 10, 2021 HEDRA Meeting – 2nd Amendment to Agreement to extend closing date until April 30, 2022 to allow for Dakota CDA Approval of grant to assist with the project  December 8, 2021 – Execution of Grant Agreement with Dakota CDA for $250,000 grant. Grant expires on December 31, 2022.  April 14, 2022 HEDRA Meeting – Approved cancellation of existing agreement and issuance of a new Purchase Agreement based upon recommended changes from the City Attorney. Closing to now occur prior to August 1, 2022.  August 11, 2022 HEDRA Meeting – Approved 1st Amendment to new Purchase Agreement to extend the closing date one year until August 1, 2023 and require demolition of the home prior to December 31, 2022 as required by the Dakota CDA Grant.  November 7, 2022 City Council Meeting. Approved 1st extension to land use approvals to expire August 1, 2023.  November 11, 2022 – Dakota CDA grants a one-year extension to the $250,000 grant agreement which will now expire on December 31, 2023.  December 8, 2022 HEDRA Meeting – Approved 2nd Amendment to Development Agreement to remove the need to approve demolition of the home due to one year extension of the Dakota CDA grant.  July 13, 2023 HEDRA Meeting – Approved 3rd Amendment to Development Agreement to extend closing date to August 1, 2024.  July 17, 2023 City Council – Approved 2nd extension of land use approvals to expire August 1, 2024  December 31, 2023 – Dakota County CDA grant expires with no draws against the amount. 2024 Actions and Communication  July 10, 2024 – Staff met with Luke and Todd Siewert. Staff is recommending termination of the existing agreement due to non- performance. Luke asked about the availability of TIF for the project. Staff stated the proforma would need to be completed and reviewed to determine need and that agreeing to sell the property for $1 was the assistance being provided to the project. Staff invited the Siewerts to the July 11th meeting to provide a timeline for project completion.  July 11, 2024 HEDRA Meeting – Staff recommended termination of the Development Agreement. Siewert attended the meeting and provided a project update. Approved extension of Development Agreement until October 1, 2024 to allow developer to develop milestones for project completion.  July 22, 2024 – Staff sent a template proforma to Luke for completion.  July 23, 2024 – Staff sent an email requesting milestones and dates for project completion along with a completed proforma using the template sent yesterday be submitted to the City by August 9, 2024 to review for a potential amendment to the Development Agreement.  July 26, 2024 – Email from Luke. They continue to meet with to determine construction pricing. He asked for clarification on what the City sought for milestones. He also asked about modifications to the building to increase the height or number of units.  July 29, 2024 – Email response to Luke that the project height could not be increased and that modification to the number of units would require review by the Council.  August 9, 2024 – Email from Luke that included proposed project milestones (without dates). He requested additional time to complete the proforma (due that day). Staff responded that a determination needs to be made as to whether they are moving forward with the previously approved plans or a modified plan before we can proceed. Creating an accurate proforma cannot be completed until they finalize the scope of the project. Staff stated the project milestone types were acceptable but needed dates.  August 28, 2024 – Email from Luke asked if modified plans would need to be approved by both HEDRA and Council. He continues to meet with contractors and banks about pricing.  August 29, 2024 – Email response to Luke confirming changes would need to approve by both HEDRA and City Council. Consideration of another extension to the land use approvals has been delayed until a determination has been made by Luke as to whether the project will be modified or not. Any extension would be subject to payment of present park dedication rates. Review of the extension to the Development Agreement is tentatively scheduled for HEDRA review on October 10th pending submittal of requested items.  September 13, 2024 – Email from Luke asked about the possibility of amending the project approvals to modify the number of units and reduce the number of parking stalls provided on site; he would prefer not to submit a new land use application. Dates added to the project milestones emailed on August 9th.  September 24, 2024 – Email response to September 13th (Hinzman returned from vacation). The reduction in parking is not supported by the existing code; however, a major code amendment is under consideration. Staff reiterated that the sale of land for $1 was the assistance provided to the property and the combination of TIF and land price reduction would not be supported by Staff. Given the lack of a proforma, uncertainty of final building design, and possible request of TIF assistance staff does not support amending the existing agreement. However, staff strongly supports continued meetings to review the proforma and determine if the project is financially feasible. If the project is deemed feasible we would then support execution of new Purchase Agreement. Staff will present its recommendation at the October 10th HEDRA Meeting and Siewert is welcomed to attend.  October 1, 2024 – Email from Luke expressed disappointment on not having Staff support to extend the agreement. He reiterated that he has provided project milestones and dates. Neighbors are in support of the project versus rehabilitating the duplex on site for use. He also expects a bank commitment shortly. He also asked about the time frame for approval of new land use approvals.  October 2, 2024 – Email response to Luke. We continue to support your efforts to make this project a reality. The expiration of the agreement does not change our commitment; we will continue to work with you exclusively. Given the lack of a proforma, uncertainty of final building design, and possible request of TIF assistance I believe an agreement is premature at this time. You are free to share any information with HEDRA. Their next meeting is October 10th at 6pm. Information can be included in the HEDRA Packet if received by the end of day Thursday October 3rd. Approval of new land use applications typically takes 4-6 upon submittal of a complete application. Staff is happy to meet to further discuss.  October 3, 2024 Email from Luke. He is working to get information together prior to the HEDRA Packet deadline. Asked if timeline of milestones would be included. Staff responded they would be included.