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<br />Mayor Gamec stated that he has been in contact with John Letourneau who has communicated <br />the difficulty they have had with pre-sells on this property. He stated that he has spoken with <br />some seniors and they have told him that although the facilities look like they will be nice, the <br />rates were higher than they had expected. He stated that he feels this would fill a need in the <br />community and has been surprised that they have not filled up. <br /> <br />Ms. Barnes stated that because they are a non-profit agency, the costs charged are directly related <br />to the costs of the project. She stated that due to home sales being stagnant, they need to re- <br />evaluate their involvement, but urged the City to continue with their dream for the RTC. <br /> <br />Councilmember Elvig stated that presale in this market must be very difficult. He stated that he <br />would be interested in knowing if the presales are the biggest part of the problem, or that town <br />homes are so inexpensive now, or the stagnant home sales. He stated that he would like to know <br />what their analysis of the situation is and whether there is anything the City can do to help. <br /> <br />Ms. Barnes stated that the problems are not directly related to anyone thing, but many things. <br />She stated that entry fee pre-sales are very difficult right now because of the drop in home sales. <br />She stated that it is also more difficult to do pre-sales when there isn't anything else around the <br />proposed project site, so people do not know what will be there eventually. She stated that there <br />are also costs related to the building requirements in the development agreement. She reiterated <br />that she did not want this to cloud the dream of the RTC concept, but since it is not here yet, <br />Crestview needs to re-evaluate things. <br /> <br />Mayor Gamec stated that the slow down in development surrounding the R TC has frustrated the <br />City also. He asked whether the Crestview project could be staged and built in phases. <br /> <br />Ms. Barnes stated that this will be one thing they will consider while they are re-evaluating the <br />project. <br /> <br />Councilmember Jeffrey asked if 3 months to re-evaluate was enough time for a decision to be <br />made about the future. <br /> <br />Ms. Barnes stated that she plans to stay in open communication with the City and that in 3 <br />months time, she does not know what message she will give to the City other than the fact that <br />whatever decision is made they want it to be the right thing for the City of Ramsey seniors. She <br />stated that she feels this is not the end of a dream, but the dream may be a different one. <br /> <br />Councilmember Elvig suggested that some members of staff such as Sean Sullivan could work <br />with Crestview to see what kind of creative financial solutions the two sides can come up with. <br /> <br />City Administrator Ulrich stated that he is hopeful that the City can work with Crestview on the <br />realm of possibilities open for this project. He suggested that there could be an ad hoc group of <br />some sort formed to help guide this project. <br /> <br />Ms. Barnes stated that their financing consultant and investment banker could be part of a <br />meeting with the City. <br /> <br />City Council Work Session illecember 3, 2007 <br />Page 2 of9 <br />