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Economic Development Authority (EDA) <br />Meeting Date: 09/17/2015 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />Title: <br />Consider Request from PSD LLC for a Housing Subsidy <br />4. 1. <br />Purpose/Background: <br />PURPOSE <br />Consider the attached request, and application, from PSD LLC for a "housing subsidy" to support the construction <br />of a 122 unit apartment complex located within The COR. <br />BACKGROUND CPS III1 IIL.....IIL,(r......IIL°iii...°t.p„ ..:.�.....III' !II91..:�m����':(�.. <br />PSD LLC is a significant land owner and well established developer in the City of Ramsey. PSD LLC recently <br />purchased about 15 acres of City owned land located within The COR for $1.89M. It is proposed, PSD LLC will <br />develop their new property in three phases. The first phase of their development is planned to be a 122 -unit market <br />rate apartment complex. <br />The proposed apartment complex will feature a tuck -under heated and secured parking on half of the first floor, <br />quality entrance area (fire place, couches, chandeliers), high quality detached garages, a small park (including a <br />playground), a community garden, a mix of 1-2-3 bedroom apartments, a full size workout facility, quality <br />community grills/ patios/ seating, community room/ game room, and quality interior design (granite counter tops, <br />granite window sills, wood blinds, vinyl plank wood floors, stainless steel appliances, quality solid -wood cabinetry <br />design, full-size in -unit washer/ dryers, triple pane high energy efficiency windows, garbage chutes). The proposed <br />project will front The Draw Park along Ramsey Parkway, and will comply with the City's zoning regulations (i.e. <br />architecture). <br />PSD LLC estimates the first phase of their development, a 122 -unit apartment complex, is a nearly $20M <br />investment. Attached to this case is the most recent site plan and visuals of the proposed apartment complex. <br />BACKGROUND I A'' III S AIs11I tw IIIA, III? IIIA � <br />1 III)S lIII"tI <br />PSD LLC has experienced an unanticipated hike in project costs; and feels City assistance is needed in order to <br />move the proposed project forward. PSD LLC was confident they could prove a financial gap exists in their <br />pro -forma and was willing to have a third party underwrite their project (Ehlers); including paying the required <br />$7,000 fee. Staff accepted a complete application from PSD LLC on September 10. <br />Notification: <br />NA <br />Observations/Alternatives: <br />Attached to this case are a number of observation documents. <br />Staff Notes (attached): <br />(1) Can PSD LLC justify a financing gap actually exists? <br />(2) Is this request reasonable in comparison to other projects in the TC Metro? <br />(3) Financially, does this request make sense for the City of Ramsey? <br />(4) Does the City have reasonable funding source available for the requested assistance? <br />