Other business we will uh recess and move into a Rochester Economic Development Authority meeting for January for July 6, 2026.

Um first up is our consent agenda.

There is uh one item the Raj the EDA minutes of May 4th.

Is there a motion for approval?

For approval.

Second.

Motion made by council member uh keen and seconded by council member Doring.

All in favor say aye.

Aye.

Opposed say nay.

Motion passes.

Uh uh moving on to reports and recommendations.

We have one item on our business this evening, which is amendments to purchase and develop assistance agreements relating to the Civic Center North Apartment Project.

Uh, Mr.

Brent Sven V.

Good evening, EDA President Shooting, members of the EDA and Mayor Norton.

Uh Brent Sunby here with community development.

So back in March of 2022, um, after going through an RFP process, the city selected Sherman and Associates to partner with them for the redevelopment of the Civic Center North site.

At the end of 2024, the city established a tax improvement financing district for the property.

And June of last year, the council approved purchase and development assistance agreement and related to the project at Civic Center North.

Um since that time, city staff has worked closely with Sherman and Associates to maintain the project schedule and meet the existing requirements to close and commence construction by the end of June of this year.

Um significant work has occurred over the past several months to advance the project.

Um the affordable housing component specifically closed on tax exempt bonds.

The market rate tower building has a partial phase permit issued, and the development team has secured commitments for a majority of the required project equity.

In addition, Sherman Associate has invested approximately three and a half million dollars into the pre-development and project cost, demonstrating a financial commitment and continued confidence in the project.

On June 23rd of this year, Sherman Associates formerly requested a 90-day extension to the closing date, citing continuing challenges in the capital markets and the need to finalize remaining equity commitments and permanent financing for the project.

Staff recognizes the significance of the project and the substantial investment already made by Sherman and Associates following the negotiation period between city staff and the Sherman team.

Staff is recommending that a 70-day extension be granted instead of the requested 90 days.

Staff believes that this time rain provides a significant opportunity to complete the financing while maintaining accountability and preserving the city's ability to pursue ultimate redevelopment opportunities if necessary.

While the alternative development scenario is possible, staff does not feel or believe that the city would be in a position to meaningfully advance another proposal within the next 70 days for the site.

Again, given the competitive nature of the low-income housing tax credit and housing bond programs, replacing these financing resources and delivering a comparable mixed income development would be challenging and could delay redevelopment of this important river site even further.

As part of the negotiated of the terms of 70 days instead of the 90 days, um Sherman and Associates has agreed to a 200,000 non-performance fee.

Basically, if um Sherman Associates do not close on the property within the 70 days, they would owe the city 200,000 for not for a non-conformance fee.

Um I do have Chris Sherman here with us this evening that would like to address the EDA in more detail in regards to the request.

Um, but I'm happy to report that Sherman Associates has been a wonderful team to work with these number of number of years on the project, and we feel that we can get a project closed and start construction within 70 days, which would put us at sometime before September 14th of this year, where they would have to close on the on the land and start construction on the project.

So with this, I'll turn it over to Chris Sherman if that's okay with EDA members.

Come forward.

Mr.

Sherman, thanks for being here to this evening.

My pleasure.

Really appreciate your time tonight.

Brent, thank you very much for the remarks.

And it's been a pleasure working with city staff on this project for the last four and a half years.

We recognize we're four and a half years into a process to deliver 349 homes on this site.

Over the last four and a half years, we have gone through a lot of various considerations with the city as we looked at different iterations of the project.

We also have faced some macro conditions that the project has encountered along the way.

Sherman Associates is a developer owner operator that really takes pride in delivering generational housing.

The product we deliver and have been delivering for 48 years.

We want to deliver product that generations from now people are going to look at and say that was done well.

And part of our reason for really being such a uh uh massive um uh focused effort right now on Rochester is we find alignment and all the great things the city of Rochester is doing.

Our mission, building communities enriching neighborhoods really ties into what we want to be doing along the riverfront for decades to come.

I will be here for decades to come.

And the product that we look to deliver here to 349 families is one that we certainly are gonna be able to stand behind long term.

We are at the finish line of this process.

140 million of capital coming to closing here.

Our targeted closing date that we're communicating to all parties is August 15th.

It has been a road uh to move um housing production forward the last few years.

There have been challenges, but we are a group that sees things to the finish line and do not take shortcuts along the way to make a deal work.

We take the right road to deliver the quality product that you, the council, you, the mayor, city staff, and residents of the city can be proud of long term.

And as a developer owner and long-term operator, um, that's key for us.