[Mpls] CD Committee approves Sears deal

[Gregory Luce]

The financing details, costs, and developers' fees are all part of the
packet provided to the CD Committee for today's vote. It is also online
currently at:

http://www.ci.minneapolis.mn.us/council/2004-meetings/20040514/Docs/10_F
inal_report_term_sheet_4_29.pdf

I'm sure that link will break, so if it does, it is available on the CD
Committee's agenda schedule on the city's web site.

Of note:  Ryan Companies is deferring its developer fee of $1.75 million
to help finance the deal. Sherman Associates does not defer its fee and
collects total developer fees of $5.5 million as follows:

$2.3 million for building 82 owner-occupied units in the Sears Building,
which are predicted to sell for $218,000 per unit on average (all 1 to 2
bedroom loft style homes); and

$3.2 million for building 221 units of rental housing in the Sears
Building, with 177 of the units predicted to be available to those
making 60 percent or less of the Metropolitan Median Income (MMI).  My
understanding is that the rental housing is intended to also be senior
housing.

PPL is building 60 units of owner-occupied housing along the perimeter
of the parking ramp.  Units are predicted to sell for $172,000 per unit
on average.  PPL is proposing a $600,000 developer fee, which it is not
deferring.

Gregory Luce
Project 504
Residing in St. Paul 

The List Manager wrote:

Council committee approves Sears deal:

>From the story:

Goodman said she looked hard at the numbers before taking the vote
Tuesday and then asked herself three questions: Is there anyone who can
do this better? Would we like the result? Can anyone do this less
expensively?

She said she didn't think anyone could do it cheaper or better and that
she didn't want to see the historic building torn down and replaced by
big-box retail.

"This is something not only that we can live with but that we can be
proud of," she said.

http://www.startribune.com/stories/462/4759109.html