Minutes - Economic Development Authority - 08/10/2017

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Mr. James replied that the sketches were a bit larger than what would be proposed for The COR. He noted that this would be similar to the Residence at The COR. He noted that this area is a transit oriented development. He stated that he would hope to separate from Sunwood to prevent the creation of a canyon feeling as people are driving down Sunwood. Member Williams asked for information on the feelings towards structured parking. Mr. James stated that there is a security issue with structured parking. He stated that the stalls furthest from the elevator are the least used. He stated that if residents can drive into an underground parking and walk a short distance to the elevator, that is preferred and access would only be given to residents. He stated that if the shared parking is incorporated, the first two levels would have views of the parking structure and that would not be preferred at the market rate the apartments would rent at. Member Hardin asked if most of the tenants in their other complexes have one or two vehicles and the percentage of parking that is provided underground. Mr. James stated that most of the units have a vehicle range of one to 1.5 vehicles per unit. He stated that they aim to match 1.5 stalls per unit. He noted that in Eagan there is an option to rent additional spaces in structured parking nearby, should that development need it. He stated that even in a location like this, where transit is an option, they would still most likely utilize a ratio of 1.3.to 1.5 vehicles per unit. Acting Chairperson Riley asked and received confirmation that Concepts C and D would meet the floor area ratio standards. Economic Dev. Mgr./Assistant City Administrator Brama stated that this project would meet the standards of The COR, most likely better than even the PSD project. City Administrator Ulrich asked for financing information. Mr. James stated that the company is privately owned and the projects are privately financed. He stated that most often they have construction financing in place, noting that USBank was used for the Eagan project. He stated that once the project is built, long-term financing would be secured. He estimated a $35,000,000 budget with $6,000,000 to $6,500,000 in equity. He stated that their preference would be to self-fund and retain ownership. Economic Dev. Mgr./Assistant City Administrator Brama stated that the Planning Commission reviewed this case the previous week and was excited by the project. He stated that the Commission would like to keep the project in the COR 1 Zoning District and would not support the concept that straddles the COR 2 Zoning District. He noted that a comment was made that if the project were up against Sunwood, they would prefer a retail element. He stated that the Planning Commission would like to encourage this project to move forward. Acting Chairperson Riley stated that it would seem the Concept C would be the best fit. Economic Development Authority/August 10,2017 Page 3 of 8