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Item No. 21 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: RESIDENTIAL DEVELOPMENT PROPOSAL <br />DATE: May 11, 2017 <br />BACKGROUND: GVD Construction proposes to build a 130+ apartment complex on Ruby <br />Way. They have developed preliminary drawings and are in the plating process. They propose to <br />construct higher quality apartments with no state or federal subsidies, so are looking for local incentives <br />instead to make their project financially viable. They have successfully received ad valorem abatements <br />in two other cities. <br />STATUS OF ISSUE: Gene Dixon, company owner and manager, initially requested a five -year <br />100% tax abatement, as well as reduced or no development fees. In response I developed a <br />memorandum of understand covering mutually agreed upon deal points. These include property <br />tax abatements in decreasing amounts, reduced fees, and a series of quality standards the <br />developer would be required to meet. <br />BUDGET: No out -of- pocket costs to city, but short-term potential revenues would be reduced. <br />RECOMMENDATION: Approve deal points, with modifications as required, and instruct city <br />attorney to prepare and mayor to execute a development agreement with approved points. <br />