CITY OF McKINNEY, TEXAS - File #: 23-0369

• File #: 23-0369
• Name: MHFC Palladium Draft MOU
• Type: Agenda Item
• Status: Agenda Ready
• In control: McKinney Housing Finance Corporation
• On agenda: 5/12/2023
• Final action: 5/12/2023
• Title: Consider/Discuss/Act on a Memorandum of Understanding (MOU) with Palladium USA International, Inc. (the "Developer") relating to the acquisition, development and financing of Palladium McKinney, a proposed 172-unit multifamily housing development to be located in the City of McKinney, Collin County, Texas (the "Project").

Date	Ver.	Action By	Action	Result
5/12/2023	1	McKinney Housing Finance Corporation

Title

Consider/Discuss/Act on a Memorandum of Understanding (MOU) with Palladium USA International, Inc. (the “Developer”) relating to the acquisition, development and financing of Palladium McKinney, a proposed 172-unit multifamily housing development to be located in the City of McKinney, Collin County, Texas (the “Project”).

Summary

ITEM SUMMARY: 

•                     Developer Fee

o                     25%

o                     $1.2MM

•                     General Contractor Fee

o                     $125K

•                     Partnership Management Fee

o                     $10K + 3% annually

o                     $185K (over 15 years)

•                     Net Cash Flow

o                     25%

o                     $593K (over 15 years)

•                     Sale or Refinance Net Cash Flow

o                     25%

o                     Difficult to estimate, but can definitely assume it is not zero

•                     Total Fees over 15 years - $2.1MM