08/15/11 Work Session - Laserfiche WebLink

Home

HRA BUSINESS Case #1: Consider Proposed Deal Structure — The Residence at The COR Project (Portions may be closed to the public) Development Manager Lazan reviewed the staff report and provided background information regarding The Residence at The COR and the overall plan for development of The COR. He highlighted the Coborn's building and introduced Chris Coborn. Chris Coborn addressed the Commission and stated that it has been his vision to stay in Ramsey for the long -term. He acknowledged that the development has been slower than expected but he is excited by the new plans for development of the area. He stated that his business supports this community and the proposed development, and noted that he has also drafted a letter of support for this project. Development Manager Lazan noted that the proposed development would potentially bring in 300 residents, which would in turn assist the businesses in Ramsey. He summarized the features and amenities, which would make this component successful. He noted that apartments have become a strong component in the current market and highlighted apartment projects, which have been completed in 2011 or are currently proposed. He explained that most apartment projects are within the Metro area but advised that this apartment facility would put Ramsey on that map and bring in additional residents. He advised that staff has been working with the developer since spring to fill a funding gap. David Flaherty provided examples of similar apartment facilities, which his business has constructed, and found success with, in this market. He did not believe a better product would be found in the Metro area and highlighted amenities, which would be included. He noted that the location would be ideal as the apartments would be located near the rail stop. He stated that the journey has been difficult because of the economy, but explained that apartments have become the most desirable product for lenders in the current market, although lenders would prefer development within a core urban area. He advised that a lender, PNC, has been found that is willing to invest in this project in Ramsey and discussed the proposed agreement with PNC. He stated that he is pleased with the progress thus far and hoped for success in the future. He discussed a similar apartment facility, which is proposed for development by his company in Edina. Commissioner Elvig believed that example solidified the idea that apartment living has become an increasing trend in this market. Development Manager Lazan noted that the deal points had not changed due to the financing. He reviewed the PNC agreement and noted that a funding gap of $6,800,000 would still be contributed by the City. 1-le reviewed what would be offered to the City in return for the $6,800,000 to protect potential risk. Housing and Redevelopment Authority / August 15, 2011 Page2of5