23-05 Approve Term Sheet for Developmnet of 8200 Golden Valley Road and 8250 Golden Valley DriveHRA RESOLUTION NO.23-005
A RESOLUTION APPROVING TERM SHEET FOR DEVELOPMENT OF
8200 GOLDEN VALLEY ROAD AND 8250 GOLDEN VALLEY DRIVE
WHEREAS, Sentinel Holdings Company, a Minnesota Corporation ("Developer") (or a
limited partnership or other entity to be formed thereby or affiliated therewith) intends to
purchase 8240 Golden Valley Dr.; 8200 Golden Valley Rd.; Golden Valley, MN 55427 portion of
PID: 31-118-21-14-0043; 31-118-21-14-0044, (the "Property") subject to approval of a final plat
of the Property; and
WHEREAS, the Housing and Redevelopment Authority (HRA) and the Developer intend to
execute one or more Development Agreements; and
WHEREAS, as a condition of its approval, the City requires Developer to comply with the
City's Mixed Income Housing Policy; and
WHEREAS, improvements to the Property will include the construction and equipping of
a multifamily rental housing facility with approximately 303 units with a mix of studio, 1, 2 and
3-bedroom units, of which 46 units will be allocated to tenants earning 60% of the area median
income (AMI) or below per the Housing and Urban Development (HUD) annual rental
maximums for a 20-year period; and
WHEREAS, the Developer shall be solely responsible for the cost of all public
improvements required by the Project which shall include:
a. Sidewalk and/or trail around the perimeter of the site including ADA ramps
b. Storm Sewer extension from Golden Valley Drive to Wisconsin Avenue
c. Watermain relocation in Golden Valley Road
d. Modifications to center median in Golden Valley Road at closed driveway
e. Mill and overlay Wisconsin Avenue and Golden Valley Road following completion
of the improvements; and
WHEREAS, Developer will commence construction on the Wells Fargo Bank building on
or around July 1, 2023 and substantially complete construction on or around June 30, 2024; and
WHEREAS, Developer will commence construction on the multi -family building on or
around July 1, 2024 and substantially complete construction on or around June 30, 2026; and
WHEREAS, the City will require the Developer to pay 100% of the costs of establishing
the Tax Increment Financing (TIF) district and to pay for the reasonable out-of-pocket legal,
financial consultant and administrative fees associated with this transaction.
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NOW, THEREFORE, in consideration of the terms and conditions expressed herein, the
HRA and Developer agree as follows:
Subject to all terms and conditions of the development agreement(s) and satisfaction of the
requirements of applicable law including a final "but for" analysis, the HRA will reimburse the
Developer for costs of construction of the multi -family building.
The HRA would invest in the project by approving a Renewal and Renovation Tax Increment
Financing District and a TIF PAY-AS-YOU-GO note with a principal amount of up to $11,243,000
generated by the Project based on an interest rate of 6%.
The PAYGO note will be payable from 90% of the tax increment generated from the Multi -Family
Building and Wells Fargo Building, on a PAY-AS-YOU-GO basis until the principal amount of the
TIF has been satisfied as determined by the HRA, for a period of up to 15 years.
NOW THEREFORE, BE IT RESOLVED, BY THE HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF GOLDEN VALLEY, MINNESOTA that this Authority approves the
Term Sheet.
Passed by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota
this day of May 16, 2023.
Maurice Harris, HRA Chair
ATTTEST:
Timoi
hank, Executive Director
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