Minutes - Council - 02/10/2015 - Laserfiche WebLink

Home

the risk to the City that a loan will not be repaid is eliminated once these transactions have been completed. City Administrator Ulrich explained the requirement to provide for low- to moderate - income housing would be removed and it will be a true market project. It was noted the City will receive a net interest income with the payout of $485,275. Councilmember LeTourneau asked if it is a high probability the two loans will be paid off. City Administrator Ulrich stated it is a high probability because the project needs to be refinanced and it is a requirement of that refinancing. He stated 230 units are leased, creating good cash flow, so he thinks they will be successful in refinancing the project. Councilmember LeTourneau stated there was a lot of community concern with the amount of public funds that were put into this project and he is relieved to find these funds are going to be paid back sooner than expected. Councilmember Riley agreed this was a contentious project but it seems now there will be a happy ending and the consideration is to fulfill the terms of the Development Agreement. Motion by Councilmember Riley, seconded by Councilmember Johns, to Adopt Resolution #15- 02 -044 Authorizing the Execution and Delivery of a First Amendment to Development Agreement (F & C Ramsey, LLC). Further discussion: Councilmember LeTourneau stated he is pleased that The Residence is in Ramsey and knows that those tenants are pleased to live in Ramsey. Mayor Strommen concurred and stated support for action that will lower the City's financial obligation. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Riley, Johns, Kuzma, LeTourneau, Shryock, and Williams. Voting No: None. 7.04: Adopt Ordinance #15 -01 Approving a Zoning Amendment for R -1 Residential (MUSA) at 15153 Nowthen Boulevard NW; Case of the City of Ramsey Community Development Director Gladhill reviewed the staff report and Planning Commission recommendation to approve a zoning amendment for R -1 Residential for 15153 Nowthen Boulevard NW, the former municipal center site. Motion by Councilmember LeTourneau, seconded by Councilmember Williams, to Waive the City Charter Requirement to Read the Ordinance Out Loud and Adopt Ordinance #15 -01 Approving a Zoning Amendment for R -1 Residential (MUSA) at 15153 Nowthen Boulevard NW; Case of the City of Ramsey. A roll call vote was performed by the Recording Secretary: Councilmember Johns aye Councilmember Kuzma aye Councilmember Shryock aye City Council / February 10, 2015 Page 8 of 11