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CC Regular Session <br />Meeting Date: 05/10/2016 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />7. 3. <br />Information <br />Title: <br />Aeon Purchase Agreement [PORTIONS OF CASE MAY BE CLOSED TO THE PUBLIC] <br />Purpose/Background: <br />PURPOSE <br />Consider attached offer to purchase City -owned land (Purchase Agreement, PA). Provide a recommendation to the <br />City Council. <br />OVERVIEW <br />Attached to this case is a purchase agreement from Aeon, a Twin Cities housing developer. Aeon is interested in <br />purchasing 3.38 acres of City -owned land located within The COR, on the northeast corner of Ramsey Parkway <br />and Center Street (just north of The Draw). Aeon is proposing a 40-60 unit, 3-story, income restricted, apartment <br />complex. In many ways, this proposed project will be structured much like the Common Bond project currently <br />under construction in The COR. <br />Aeon plans to fund their $12.4M project by utilizing low income housing tax credits (LIHTC), Metropolitan <br />Council grants, Anoka County Homes Funds, and owner equity. At this point, Aeon is not requesting any funding <br />from the City of Ramsey, nor are they asking for a discount on land. Although Aeon is a non-profit organization, <br />they will be paying property taxes on this project. With limited information available, staff currently estimates <br />property taxes for this project will range from $40K-60K annually. <br />After discussing the project with staff, Aeon is aware of the high architectural standards/ expectations for projects <br />located within The COR, and has indicated no concerns with delivering a quality project (similar to Common <br />Bond). Aeon has indicated they will own and operate this project. <br />As proposed by Aeon, the 3.38 parcel will be developed in phases. Phase 1 is described above (2.02 acres). Phase 2 <br />(1.36 acres) will occur when market demand is present, and will likely mirror Phase 1. Aeon is proposing to <br />purchase Phase 1 now, and place an "Option" to purchase Phase 2 (see observations section of this case for details). <br />BACKGROUND <br />City Purchase of O UTLOT A <br />The City of Ramsey purchased The COR (formerly Ramsey Town Center) in 2009 for $6.8M, consisting of 119.26 <br />acres of developable property. As part of the purchase, the City pulled back assessments on all City -owned <br />property, totaling $5.9M. The total cost of the land purchase, including the assessments is $12.7M, which breaks <br />down to $2.44 per square foot. The City purchased The COR with an intent to resurrect the development project and <br />preserve the community's original vision and master plan. The subject property is a 3.38 acre portion of the larger <br />119.26 acre purchase. <br />Site Information <br />The subject property is roughly 3.38 acres in size and is zoned COR 4(C) Neighborhood District (Residential). The <br />COR Master Plan contemplates an apartment complex for this parcel. This site is located in the north central <br />portion end of The COR, and is rectangular in shape. <br />Property Listing <br />