HomeMy WebLinkAbout[02b] Fortitude Senior Living Term Sheet Term Sheet
This Term Sheet is executed as of this day of , 2016 by and between
Developer and the City of St. Joseph (the "City") and is intended to set forth the terms upon
which the parties hereto may be willing to enter into a Development Agreement. Except for
Section 9 below (which shall be binding upon the Developer), This Term Sheet shall not be
deemed conclusive or legally binding upon either party and neither party shall have any
obligations regarding the property defined below unless and until a definitive Development
Agreement is approved by the City and executed by both parties.
1. Developer: Fortitude Senior Living of St. Joseph LLC
2. Property: Graceview Estates Outlot A, St. Joseph, Minnesota (PID 84.53533.0106)
3. Key Business Terms—Owner:
a. Execution of Development Agreement
b. Preparation and Submittal of Construction Plans
C. Payment of City Assessment ($115,000)
4. City Conditions:
a. Establishment of new Housing TIF District
b. City approval of Construction Plans
C. Execution of Development Agreement
d. City determination that Developer has sufficient financial means to construct
Minimum Improvements
5. Minimum Improvements: Improvements to the property will include the construction
of a 47 unit senior housing facility with available services. At least 10 units will be
reserved for those with incomes below 50% of the area median income.
6. Construction Schedule: Commence construction by September 1, 2016, and complete
by September 1, 2017. For the purpose hereof, "Commence" shall mean beginning of
physical improvement to the Property, including grading, excavation, or other physical
site preparation work; and "Completed" shall mean that the Minimum Improvements
are sufficiently complete for the issuance of a Certificate of Occupancy.
7. Public Assistance: Subject to all terms and conditions of the Development Agreement,
the City will reimburse Developer for up to $526,824 (present value) of Qualified Costs
related to the Minimum Improvements (out of an estimated total of $5,700,000).
"Qualified Costs" shall mean all costs incurred in connection with the construction of the
Minimum Improvements. Payments will be issued on a pay-as-you-go basis over the
term of the district with interest at a rate of 4.49% per annum. Repayment of the note
is anticipated by 2031 (14 years of increment).
8. Building Value: The building to be constructed upon the Property is anticipated to have
an assessed value of approximately$86,000 per unit, or a total of$3,870,000.
9. Fees: The City acknowledges that the Developer submitted a $15,000 deposit to pay for
the reasonable out-of-pocket legal, financial consultant, TIF District establishment, and
administrative fees associated with this transaction.
The developer will be required to deposit additional funds if the initial deposit is fully
drawn. Upon execution of this proposed Term Sheet, the developer will make this
deposit to the City. Any funds deposited by developer and not expended by the City for
its legal, financial advisor, or other consultant fees on or before the date of execution of
the development contract will be returned to the developer without interest. The
developer shall pay all other normal and customary City fees and expenses for the
approval and construction of the Minimum Improvements.
10. Miscellaneous:
a. No transfer of Property or Development Agreement without City consent.
b. Developer covenants to pay property taxes and maintain customary insurance.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set
forth above.
FORTITUDE SENIOR LIVING OF ST. JOSEPH
By:
Its:
CITY OF ST. JOSEPH
By:
Its: City Administrator