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(1)Development Fees (54 units/phase 1 only)
<br /> Parks-$126,290, Trails-$39,150,Water-$90,612, Sewer-$65,664, Storm-$24,786. Does not include SAC/WAC or
<br /> building permit fees. This is an informal estimation, changes will occur.
<br /> (2) Tax Base(54 units)
<br /> 40-60K annually in total property taxes. This project is located within TIF District 14,which is a benefit to the City,
<br /> as it will generate dollars for TIF 14,which can be used for various public improvements contemplated for The
<br /> COR.NOTE: the city is able to pull about 60%of total property taxes for TIF. This is an informal estimation,
<br /> changes will occur.
<br /> (3) Workforce Housing
<br /> Over the past two years, staff has received strong and consistent feedback from local employers help is needed to
<br /> address shortages in workforce. Anecdotally, local businesses have suggested the City consider affordable housing
<br /> options to help retain and attract workforce.
<br /> (4) City Transaction Costs
<br /> In order to close this transaction,the City will need to pay CBRE a commission(5%on $300K or$15,000).
<br /> Additionally,the City will need to pay 1/2 of closing costs, state DEED tax, and the cost for a title work (estimated
<br /> between$2,00044,000).NOTE: these transaction costs are all consistent with past projects and in compliance with
<br /> city policies.
<br /> (5) Concentration of Workforce Housing Projects
<br /> When considering the Seasons ofRamsey townhome project(2013),the Common Bond apartment project(2016),
<br /> and now potential Aeon apartment project(2017 or 2018), it could be perceived that a concentration of workforce
<br /> housing may be occurring in The COR. Staff has no concerns with workforce housing in Ramsey, as a whole.
<br /> However,because the City is the property owner in this case, discretion exists for selecting buyers/users. The
<br /> policy question here is not IF the community generally supports workforce housing,but when is workforce housing
<br /> becoming too concentrated in one geographic area(i.e. The COR).
<br /> (6)Land Sale Proceeds
<br /> Staff estimates roughly $280K of land proceeds from this transaction,which will help pay down debt associated
<br /> with The COR.
<br /> (7)Retail/Restaurants
<br /> Although this project doesn't deliver much desired and anticipated restaurants/retail to The COR, it does move
<br /> Ramsey closer to this goal. Staff is repeatedly told by prospects, developers, and brokers,the two biggest things we
<br /> can do (control)to get retail and restaurants in Ramsey, is continue improving U.S.Highway 10, and continue
<br /> improving demographics (i.e. butts-in-seats). As our policy makers well know, Ramsey's experienced positive
<br /> momentum in both arenas over the past two years.
<br /> (8) Term of'Agreement
<br /> This agreement, and the proposed funding structure, does require a longer than normal due-diligence period (i.e.
<br /> closing is far out). There is a chance this agreement never closes; and in the meantime,the city passes up on other
<br /> prospects.NOTE: Aeon desires to construct their project in 2017. However, 2018 construction would not be
<br /> unrealistic.
<br /> STAFF NOTE
<br /> The deal structure proposed by Aeon includes a Metropolitan LCDA Grant. LCDA grants require cities to sponsor
<br /> applications (technically be the applicant). Additionally, LCDA grants require two application rounds (one
<br /> conceptual/preliminary, and one formal). The preliminary/conceptual application does not cost the City anything,
<br /> nor does it commit the City to a project. The deadline for 2016 LCDA grants,preliminary/conceptual applications,
<br /> was on 05/02/2016. Staff did work with Aeon to get a conceptual application into the Metropolitan Council. If the
<br /> City decides not to move forward with this project, staff will pull said application
<br /> Funding Source:
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