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(4) City Transaction Costs In order to close this transaction, the City will need to pay CBRE a commission (5% on $300K or $15,000). Additionally, the City will need to pay 1/2 of closing costs, state DEED tax, and the cost for a title work (estimated between $2,000-$4,000). NOTE: these transaction costs are all consistent with past projects and in compliance with city policies. (5) Concentration of Workforce Housing Projects When considering the Seasons of Ramsey townhome project (2013), the Common Bond apartment project (2016), and now potential Aeon apartment project (2017 or 2018), it could be perceived that a concentration of workforce housing may be occurring in The COR. Staff has no concerns with workforce housing in Ramsey, as a whole. However, because the City is the property owner in this case, discretion exists for selecting buyers/ users. The policy question here is not IF the community generally supports workforce housing, but when is workforce housing becoming too concentrated in one geographic area (i.e. The COR). (6) Land Sale Proceeds Staff estimates roughly $280K of land proceeds from this transaction, which will help pay down debt associated with The COR. (7) Retail/ Restaurants Although this project doesn't deliver much desired and anticipated restaurants/ retail to The COR, it does move Ramsey closer to this goal. Staff is repeatedly told by prospects, developers, and brokers, the two biggest things we can do (control) to get retail and restaurants in Ramsey, is continue improving U.S. Highway 10, and continue improving demographics (i.e. butts -in -seats). As our policy makers well know, Ramsey's experienced positive momentum in both arenas over the past two years. (8) Term of Agreement This agreement, and the proposed funding structure, does require a longer than normal due -diligence period (i.e. closing is far out). There is a chance this agreement never closes; and in the meantime, the city passes up on other prospects. NOTE: Aeon desires to construct their project in 2017. However, 2018 construction would not be unrealistic. STAFF NOTE The deal structure proposed by Aeon includes a Metropolitan LCDA Grant. LCDA grants require cities to sponsor applications (technically be the applicant). Additionally, LCDA grants require two application rounds (one conceptual/ preliminary, and one formal). The preliminary/ conceptual application does not cost the City anything, nor does it commit the City to a project. The deadline for 2016 LCDA grants, preliminary/ conceptual applications, was on 05/02/2016. Staff did work with Aeon to get a conceptual application into the Metropolitan Council. If the City decides not to move forward with this project, staff will pull said application. Funding Source: NA Recommendation: Outside of considerations #3 and #8 outlined in this case, which require policy direction, staff has no concerns with this project. To -date, Aeon staff has been great to work with. Generally, this project meets all applicable city policies, and helps the City achieve it's goals for The COR, and assists with addressing community workforce shortages. If the EDA wants to move forward with this project, staff does encourage the Council include an additional provision in the PA related to architectural design and site layout (see PA Summary Section of this case, Item #6). NOTE: staff and the attorney have have a handful of minor changes pending for the attached PA. The attached PA is in draft format (as proposed by Aeon). Action: