Laserfiche WebLink
7.04: Consider Purchase Agreement for The Residence at The COR — Lot 3, Block 1, <br />COR One <br />Development Manager Lazan reviewed the staff report. <br />Stacie Kvilvaug, Ehlers & Associates, summarized the details of the Purchase Agreement. <br />Councilmember Elvig stated overall he was supportive of it in many ways. He expressed <br />concern about only having 3,000 square feet of commercial. He indicated he wanted to know <br />how much money the developer had in this. <br />Development Manager Lazan explained the pro - forma. <br />Jess Fisher, Flaherty & Collins, noted they would be long -term owners. He outlined the Illinois <br />project, which project was very similar to this proposed project, noting that project was fully <br />leased out within 12 months after construction. <br />Motion by Councilmember McGlone, seconded by Councilmember Wise, to approve the <br />Purchase Agreement. <br />Further discussion: Councilmember Elvig asked if the Council could direct a larger portion of <br />this development to be mixed use. He stated he liked the idea of subsidizing more commercial <br />and less residential. Councilmember Wise believed once people started getting into the <br />development, it would spur other activity in the area which would include mixed use. <br />Councilmember Look noted in the Illinois development the retail product was minimal and <br />Council had to work with this developer to get as much commercial in it as there was. He <br />expressed concern that in the original plan for Town Center, they had more retail than they had <br />right now. He stated one of the ways to justify the rail stop was to grow and provide riders for <br />that type of transit. He stated there was a risk to the City, but the City was taking a risk building <br />the entire COR and the City had to make this project viable and he believed this was a step in the <br />right direction. He stated he did not mind a break -even scenario on the land taking into <br />consideration the economy of today. Mayor Ramsey stated the 3,000 square feet of commercial <br />was not really what the City wanted to see, but he believed this met market reality in today's <br />market. He indicated the City would have more opportunities as more development came into <br />the area for retail /commercial developments. Councilmember Dehen stated he was opposed to <br />this development because he did not think the City should be in the development and subsidizing <br />business. He did not believe the project could "float" on its own and he expressed concern with <br />the location of the development being along the highway and railroad tracks. He stated the <br />reality was that the rail station would be five trips out and five trips back and this would be a <br />commuter rail only with very limited service. He noted there were huge vacancy rates in the <br />Cities surrounding Ramsey and he believed it was wishful thinking to believe "build it and they <br />will come ". He stated he did not want to subsidize the developer on this project. He noted St. <br />Paul was having the same issues in their Lower Town area that Ramsey is having now and this <br />has caused problems as the City was competing in the marketplace. He expressed concern as to <br />where the people would be coming from who wanted to live in this development. He expressed <br />concern with the competition with the townhomes also. Councilmember McGlone stated he <br />City Council / November 23, 2010 <br />Page 7 of 10 <br />