Agenda - Council - 07/14/2015 - Laserfiche WebLink

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3. Dominium is aware of the City's request; and has indicated they would be willing to add owner equity to the project. Dominium is aware of the City's policy for 10% owner equity. 4. Dominum has indicated they have tried to meet the request for a mixed use building in the past, in other communities. Unfortunately, they've repeatedly had bad experiences with this practice. Dominium is not comfortable with including this request in their model. Dominium has noted, if the Council accepted the request in item 2 above, a mix of uses would naturally occur within a specific block. If the desire of the Council is to require a mixed-use building if financial assistance is granted, than the Developer should focus on parcels within the COR -4c district which allows for the desired density, but has a vision of exclusive residential uses (not a primary vision of a vertically mixed-use building). Observations/Alternatives: Attached to this case is the original Letter of Intent (LOI). With the original LOI in mind, consideration of the June 09 Council counter-offer outlined in the background section of this case, and the Dominium responses outlined in the background section of this case, Staff is seeking direction from the City Council on how to proceed with negotiations. Listed below are alternatives: 1. Generally accept the Dominium offer, direct Dominium to draft an updated LOI (+) sale of City owned land, $4.50 per square foot, tax exempt property back on the tax rolls (+) roof tops, moderate level of discretionary income, drive retail and development momentum (+) quality building, quality architecture (+) hidden structured parking (first investor to -date to provide, helps meet original vision of The COR) (+) #1 priority in City's Housing Subsidy Policy, provides senior independent (not assisted living) specific housing within The COR (+) quality developer, quality long-term property manager, good references/ reputation (+) helps achieve density and rooftops guided for The COR/ Ramsey Station (+/-) compromise regarding location, still allows for mix of uses (see attached concept), COR -2 Zoning currently (can/ needs to be amended) (-) requires assistance (about 15 years of TIF) (-) low/moderate income project in close proximity to similar product The COR (senior independent living), where the City's housing goals desire to better mix income levels versus concentrate in single location 2. Generally oppose the Dominium offer, don't direct Dominium to draft an updated LOI Benefits and drawbacks are opposite as outlined above. 3. Develop a counter offer Council may wish to develop a counter offer. Please see background section for discussion points. Funding Source: NA Recommendation: Please see alternatives section. Based on discussions with Dominium, the Council and the EDA, Staff believes the major remaining discussion point on this project is the location. Staff desires discussion, based on this previous feedback, if the proposed compromise that would allow a portion of the undeveloped lot to develop as retail in the future is an acceptable approach. Action: