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would like to develop 50 units of workforce housing. He displayed and described the project site <br />plan, landscaping plan, and indicated the project would extend 147 Avenue to Center Drive to <br />provide another means of egress. This road extension is estimated at $175,000 at today's market. <br />Mr. Podawiltz stated they propose three- story, two- and three - bedroom units, with drive under <br />double garages, and double balconies. The project will include an on -site community building, <br />on site maintenance, and be constructed of maintenance -free exterior and premium interior <br />products which will minimize maintenance and enhance the tenant's living environment. Mr. <br />Podawiltz presented green building criteria incorporated into this project and displayed pictures <br />of a similar development constructed in 2010 in Buffalo, Minnesota. He then presented statistics <br />related to the need for affordable workforce housing as estimated by the Metropolitan Council, <br />noting 669 such units are needed in Ramsey. Additional information included a comparative <br />tenant profile, rent/income requirements, and target tenant incomes. This project would include <br />22 two - bedroom and 28 three - bedroom units. Mr. Podawiltz requested the Council consider a <br />resolution supporting the application, zoning and land use modifications required to facilitate the <br />development, and a local contribution with a present value of approximately $215,000, which <br />can include regulatory cost avoidance and/or regulatory cost reductions, and the vacation of 147 <br />Circle NW. With the donation of the right -of -way vacation, the City's contribution can be <br />reduced to $197,000. Mr. Podawiltz explained they want to be sure the community is receptive <br />to workforce housing and if the community provides a contribution, more selection points are <br />awarded in this competitive review process. The City's contribution and giving of right -of -way <br />would create two selection points. He explained that last year, eight projects were funded and <br />asked if the Council would be receptive to this level of donation and if it felt there was a need for <br />workforce housing in Ramsey. <br />Councilmember Elvig asked what they are bringing for equity. <br />Mr. Podawiltz stated they would buy the 6.5 acres from the bank at $725,000 or $119,000 /acre <br />and construct the project. He presented the . proposed local contribution spread sheet and <br />indicated the new transit facility is worth three selection points and the City's aggregate need is <br />worth 5 selection points so this project would rank highly; however, without a local contribution <br />granting is unlikely. Mr. Podawiltz explained that ultimately the combination of local <br />contribution, tax credits, and mortgage go to lower rents for 50 workforce households for a 30- <br />year period, at a minimum. Benefits to the City include creation of real estate taxes, extension of <br />147 Lane NW to Center Street, opening an abutting property for development, and donation of <br />the right -of -way facilitates resulting from the expansion of 147 Lane NW. <br />Mayor Ramsey asked about the impact to future grant opportunities for other projects. <br />Senior Planner Gladhill explained that in terms of the LCA program, the City had submitted <br />three Transit Oriented Development (TOD) grants, so any affordable units added would bolster <br />that argument and future grant applications. <br />Councilmember Strommen thanked Mr. Podawiltz for the presentation, spread sheet, and <br />explanation. She noted the proposal is for the City to provide two parcels of land, reducing the <br />requested local contribution, and asked how that would be funded. Councilmember Strommen <br />stated this could be a good project but she has questions from a higher level policy perspective. <br />City Council Work Session / March 13, 2012 <br />Page 2 of 6 <br />