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2. What makes you think anyone will rent at these prices? Referencing the two market research studies, both concluded that there is a strong market for market - rate apartments in Ramsey, particularly on the Northstar Commuter rail Line. Drawing on comparative apartment projects in the Minneapolis suburban area, their studies project market rent rates ranging from $1.10 to $1.40 per square foot per month. The Residence at the COR project's proforma projects rents at the $1.21 per square foot, which translates to an average of about $1,210/month for a 1,000 square foot unit. 3. Do you really think that young adults can afford to pay $1,210 for rent? Why not purchase a home for the same price? The developer and the City of Ramsey have identified that the target market segment for these apartments is likely young professionals that desire to have convenient access to transit, urban living with amenities and services, but also the opportunity to enjoy the great outdoors that Ramsey and locations to the north have to offer. The young professional segment is a target, and this is generally of the 25-35 year old age group. Moreover, market evidence shows that this product is also attractive to empty -nesters or single professionals. While many people will prefer to own a home, in a more restrictive lending environment and soft housing market, leasing a high quality apartment may be the best option. Moreover, some individuals are not ready to take on the responsibility or commitment of owning a home. 4. F&C has a history of bankruptcies. What if it happens with this project? The reality is that there are few, if any, developers that have not had a project struggle to work out the way it was planned. Flaherty & Collins operates 70 properties across the US with over 9700 units of apartments under management housing over 15,000 residents. Flaherty & Collins has had two projects that were in bankruptcy protection. One was a high rise condo project in Charlotte, NC, and the other was an apartment project in Raleigh, NC. The high rise project was a result of the complete collapse in the condo marketplace in 2008. The Raleigh project was constructed and leased successfully, if a bit slower than projected, by Flaherty & Collins. It should be noted that this was in the midst of the economic downtown and bank credit crisis. Permanent financing was very difficult to secure, as it was for everyone in the property and real estate business. Bankruptcy was filed to protect the participants' assets. Subsequently the project was valued, sold, and all parties paid in full. 5. Why would you choose to work with F&C and their history of bankruptcies? We have conducted a financial background check on the firm's principals. We have examined their award -winning projects, and we have spoken to others who have done business with them. We are in the process of finalizing solid, yet complicated, development, purchase and loan agreements with them. We believe that F&C (1) is a solid partner for the City of Ramsey, (2) possesses the financial and technical wherewithal to execute this project, and (3) that F&C shares the City's vision and understands our guiding principles for The COR at Ramsey.