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Agreement is approved after FAR is amended, as well as potential drawbacks of not approving should PSD decide to pull away from the project. Acting Chairperson LeTourneau opened the floor for public comment. Jim Bendtsen, 14131 Junkite Street NE, stated staff's presentation covered some of the items but his main issue relates to the zoning amendment to FAR that will allow PSD to construct smaller and cheaper garages versus a parking ramp as required by the current zoning. He believed this would result in guaranteeing profit due to reduced development and construction costs. Mr. Bendtsen stated the zoning change allows PSD to not construct a ramp, saving those dollars. He took exception to the realtor saying that it is still a fair market value because lowering the requirements of the development will increase the profit to the developer. Mr. Bendtsen asked why this opportunity should not be opened to other developers. He felt the developer, in the future, would ask for City subsidies and a guaranteed profit. Mr. Bendtsen asked if no one takes a risk anymore and wants a subsidy, guaranteed profit, and ability to cut costs. He asked the HRA to stop this proposal, make the zoning change, and open it to others. Mr. Bendtsen felt all developers should be given an opportunity to participate, which is a fiduciary responsibility of the City. Matt Kuker, PSD, stated when this application first started it was July and now it is October and no further ahead than when they made the first offer. He explained that PSD has a business model in apartments and feel they bring a good mid -range, mid -class tenant. He noted their building in Alexandria is now full and a building permit will be ready by the end of the week. Mr. Kuker stated he has a substantial interest in Ramsey, Ramsey says it wants rooftops, this business model works for them, and it will bring both rooftops and taxes. Mr. Kuker stated his partner is experienced in apartments with 2,000 units personally held. But if this project cannot start by May 15, 2015, then his partner will go away. Mr. Kuker stated he thinks there is a general liking for this project, noting that PSD is the first one to make an offer on this property. He agreed there had been some issues with past developments and it was a shame this is a political election year, which he thinks is driving most of the questions. Mr. Kuker stated the apartments would not be constructed if the City hadn't given them the parking stalls but they do not expect a parking ramp. PSD is a for -profit business and they want to build in this area. Mr. Kuker stated he spoke with staff today and was surprised it is taking so long to get this project off the ground. Commissioner Tossey stated when he ran for office, former Councilmember Al Pearson said he had regretted being too restrictive when there was development interest. He asked Mr. Kuker if they wanted the zoning changes done prior to entering a Purchase Agreement and if he was surprised the zoning change was not on tonight's the agenda. Mr. Kuker stated he thinks it relates to this being a political issue. Commissioner Tossey stated support to not be so restrictive that it drives development away, noting density requirement is a cost to the developer because of the parking ramp that will have to be built. He stated he understands the need for a profit. Commissioner Tossey stated when PSD made a Purchase Agreement to the HRA some cried `foul' that price point was too low but Housing and Redevelopment Authority / October 14, 2014 Page 4 of 8