Answers to questions: 1. TIF could possibly be used for the structured parking for the retailers. The parking is proposed to be structured so as to increase density at the site. The number of stalls has already been substantially reduced. 2. Of the equity about $10 million is for the for sale housing, and about $7.7 million is for the commercial. 3. The residential costs what it does for two reasons. First, there is a fair number of for-sale units lumped in the figure, which skews the cost per unit. Second, there will be neihborhood based commercial on the ground floor of the apartment buildings including a theater in one of teh buildings. 4. Relocation benefits becomes an issue if eminent domain is used. Relocation benefits that are available by statute: reasonable moving expenses, search expenses, and re-establishment expenes. I don't have a figure yet, but it certainly is an issue. 5. Eminent domain could be used, and it would make sense to because Nicollet Avenue needs to be re-established and there is a Kmart sitting in the middle of it. Having said that, Sherman would like to negotiate a fair price with the landowners and has been working with them.
Dave Harstad Attorney for Sherman Whittier resident John Rocker <[EMAIL PROTECTED]> wrote: > Thanks, Dave Harstad, for trying to shed some light > on the costs and > complexities of putting a project like Nicollet > Commons together. I'd > like the project to succeed, but I have a few more > questions. > > 1. What would it take to NOT use TIF? How much more > density, how many > more units or fewer parking spaces would it take to > make the project > work financially without any TIF? > > 2. Saying that Sherman Associates is putting in > $28.5 million in equity > into this project is misleading isn't it? You're > saying the developer is > putting $25 million cash into the residential > component of this project, > but typically a developer has little or no money > invested in an > apartment project financed with bonds or low income > housing tax credits. > The equity comes from selling the bonds and tax > credits, and the rest is > mortgage financed. The developer usually has less > than 1% equity in the > project. > > 3. Why does the residential development cost so much > ($166,000) per > unit? I've consulted on lots of apartment projects > (with and without tax > credits). I don't recall any of them costing more > than $90,000 per unit, > and some of these were high-quality mansion-style > apartments with pools, > etc. What drives up the cost here? > > 4. Someone else posted a question about the costs of > relocating existing > businesses. I know its not part of the project's > financing, but it is a > real cost to the city. How much will the MCDA have > to pay to relocate > businesses? > > 5. Is the city using eminent domain for this > project? > > > John Rocker > Calhoun > > > > __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.yahoo.com _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
