Agenda - Economic Development Authority - 10/08/2015

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04,11r 9ridisAlo,pa�irespo litly mkuimr,b)ie, and To prim via°1,e��uu�l6 si_ollf,Ar .rfn mm Economic Development Authority (EDA) Meeting Date: 10/08/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Title: Consider Approving a TIF Agreement between the City of Ramsey and Parkview East LLC (PSD LLC) 4. 1. Purpose/Background: PURPOSE Consider Approving the attached TIF Agreement between the City of Ramsey and Parkview East LLC (PSD LLC) to support the construction of a 121 unit apartment complex located within The COR. BACKGROUND (Pr loWimt: Ow low or iill:i III' oorlorulll oo SC4 III1: r ^:Ill111ulll:1111141'11111 PSD LLC is a significant land owner and well established developer in the City of Ramsey. PSD LLC recently purchased about 15 acres of City owned land located within The COR for $1.89M. It is proposed, PSD LLC will develop their new property in three phases. The first phase of their development is proposed to be a 121 -unit market rate apartment complex; and will be owned by Parkview East LLC. Parkview East LLC consists of three owners: Jim Deal, Pam Deal, and Matt Kuker. In the future, Parkview East may add additional investors. PSD LLC will be the project manager for this development. PSD LLC is owned by Jim Deal and Pam Deal. The proposed apartment complex will be located on a property that was purchased by PSD LLC on May 28, 2015 (from the City of Ramsey). PSD LLC plans on hiring a third party professional property management company to manage the operations of the new apartment complex upon completion. The proposed apartment complex will feature a tuck -under heated and secured parking on half of the first floor, quality entrance area (fire place, couches, chandeliers), high quality detached garages, a small park (including a playground), a community garden, a mix of 1-2-3 bedroom apartments, a full size workout facility, quality community grills/ patios/ seating, community room/ game room, and quality interior design (granite counter tops, granite window sills, wood blinds, vinyl plank wood floors, stainless steel appliances, quality solid -wood cabinetry design, full-size in -unit washer/ dryers, triple pane high energy efficiency windows, garbage chutes). The proposed project will front The Draw park along Ramsey Parkway, and will comply with the City's zoning regulations (i.e. architecture). PSD LLC estimates the first phase of their development, a 121 -unit apartment complex, is nearly a $20M investment. Attached to this case is the most recent site plan and visuals of the proposed apartment complex. Because this project (and underlying property) will be owned by Parkview East LLC, the attached agreement is with Parkview East LLC (not PSD LLC). BACKGROUND (Assist rruimy Ill 4"44;,141'R w1) PSD LLC experienced an unanticipated hike in project costs; and felt City assistance was needed in order to move the proposed project forward. PSD LLC was confident they could prove a financial gap existed in their pro -forma and was willing to have a third party underwrite their project (Ehlers); including paying the required $7,000 fee. Staff accepted a complete subsidy application from PSD LLC on September 10.