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

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Attached is a breakdown of the Dominium offer/ request and the Staff suggested "maximum" City assistance. EDA: The EDA reviewed this case on June 04. The EDA did not make a specific motion on this case. However, they did reach the following consensus: (A) General support of the project concept and Dominium (124 unit affordable senior independent living apartment complex located on the subject property). More discussion needs to occur regarding how this project fits within the City's Zoning districts and The COR Master Plan. (B) The City financial assistance request made by Dominium should be reduced to a level that is similar with other comparable projects. The current request is too high. Staff should utilize Ehlers to help determine a specific counter offer. The Ehlers MEMO included in this case generally outlines where Ehlers/Staff will land. If Dominium is willing to reduce their financial assistance request, the EDA would like to bring this case back for consideration. Listed below are two questions asked by the EDA: Why is assistance needed/ is it common? This project is a "affordable" senior independent living apartment complex. Dominium would utilize LIHTC (low income housing tax credits) to help fund the project. As a result of using LIHTC, restrictions exist on rent rates for Dominium. Commonly, in order to deliver a quality product, and meet the rent LIHTC restrictions, developers seek additional financial assistance (County, City, other). This scenario is common for LIHTC senior independent living apartment complexes. Ehlers, the City's financial consultant, completed a analysis/ comparison of similar deals completed in our region. Please see attached. This document provides a good reference point of "what's common on similar deals?" Dominium has provided staff with market analysis data; which indicates the demand for senior independent living in Ramsey. Based on the Dominium information, a strong market/ demand exists in Ramsey for the proposed product. However, in comparison to other recently completed Dominium projects, the Ramsey market is slightly softer and will require a somewhat larger "capture rate." Meaning, the percentage (%) of prospect residents they would need to capture in Ramsey is slightly above recently completed projects. Dominium has indicated said this discrepancy (increased risk) is another reason they are seeking assistance. Lastly, Staff would like to note, Dominium is proposing first floor structured parking on this project with very little surface parking. This approach on parking fits in-line with the City's original vision for The COR. However, the proposed strategy for parking does increase costs to the project. How does this project fit with The COR Master Plan and city zoning regulations? The project site is located within The COR District on the Official Zoning Map. Within the Design Framework, The COR Zoning District is further divided into sub-districts.This site is located within The COR -2 Sub -District, which is focused on retail type uses. The City Council, after review by the Planning Commission, would amend the Development Plan for The COR. This does not require an official, traditional Comprehensive Plan nor Zoning Amendment. The Future Land Use Map and Zoning Map are already guided in the appropriate manner. The Zoning Code for The COR was developed as a 'hybrid' form based code that focuses more on layout and design and less on uses than a traditional zoning code. The proposed layout and density is consistent with the vision for residential uses in this area in close proximity to the transit station. Action: Staff is looking for direction on two general items: 1. Does the project concept fit the property/ is the overall development concept acceptable? 2. What level of financial assistance is the City Council comfortable with considering from a preliminary/ conceptual perspective? Staff recommendation: the City financial assistance request made by Dominium be adjusted to a level similar to