01/11/18 - Laserfiche WebLink

Home

Economic Development Authority (EDA) Meeting Date: 01/11/2018 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 3. Title: Inland MOU Infrastructure Purpose/Background: PURPOSE The purpose of this case is to consider approving the attached Public Infrastructure Memorandum of Understanding (MOU) for the proposed Affinity Living apartment project located in The COR. BACKGROUND, Project CAP Acquisitions LLC entered into a purchase agreement with the City of Ramsey for a roughly 4.2 acre piece of city -owned land located in The COR on September 26, 2017. CAP Acquisitions is proposing a new 172-unit, senior, independent living, market rate, high amenity, apartment complex called Affinity Living. Attached is the purchase agreement. Please reference the 01/09/2018 City Council Regular Session meeting for details on the proposed site layout. Affinity Living is proposed to begin construction in May/ June 2018. BACKGROUND, Infrastructure Improvements The proposed Affinity Living project will trigger the construction of new public infrastructure. Please see attached Bolton & Menk Infrastructure Study for details on public infrastructure located near the proposed Affinity project (reference page 8 and Figure 2). NOTE: not all of the infrastructure shown in the Bolton & Menk report will be constructed as a result of this project. It's staffs recommendation, that Road Segments Al, Cl, and C2 be constructed as a result of this project. It is also staffs recommendation that Affinity be responsible for paying a share of Road Segments Cl, Al, and B--as these road segments are located adjacent to their site. BACKGROUND, Cost Share for Infrastructure The attached purchase agreement with CAP Acquisitions indicates that the developer will pay for 40% of all public infrastructure costs. If the developer is only located on one side of a new road, they would pay for half of the 40% share, or 20% (see paragraph 31). This arrangement is consistent with past practice in Ramsey and recent projects (Bunker Lake Industrial Park, Stone Brook). The purchase agreement indicated this item would be formalized in the future between the buyer and seller --and that future arrangement could include a reimbursement agreement. This arrangement assumes the city would pay for the remaining portion of infrastructure, up to 80%. At the time the attached purchase agreement was competed, the city had yet to finalize the exact funding source for their portion of public infrastructure. At the time, staff indicated The COR TIF District would likely be the recommended funding source. BACKGROUND, MOU The purpose of the attached MOU is to establish a preliminary understanding of the scope of public infrastructure work that needs to be completed, the estimated cost of said work, who is responsible for what portion of costs, how the public infrastructure will be financed, and how public infrastructure construction planning/ engineering/ and administration will occur.