Agenda - Council - 04/24/2018 - Laserfiche WebLink

Home

CC Regular Session Meeting Date: 04/24/2018 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 7. 4. Information Title: Affinity Apartment Project: Resolution #18-061 Approving a TIF Agreement Purpose/Background: PURPOSE The purpose of this case is to consider approving the attached Resolution #18-061 authorizing the use of Tax Increment Financing (TIF) to reimburse public infrastructure improvements costs related to the proposed Affinity Living apartment project located in The COR. This action is generally consistent with attached and previously approved MOU and PA. BACKGROUND, Project CAP Acquisitions LLC entered into a purchase agreement with the City of Ramsey for a roughly 3.3 acre piece of city -owned land located in The COR on September 26, 2017. CAP Acquisitions is proposing a new 174-unit, senior, independent living, market rate, high amenity, apartment complex called Affinity Living. Attached is the purchase agreement. Affinity Living is proposed to begin construction in July 2018, and will take 12-18 months to complete. 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 PA and MOU 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%. This arrangement is consistent with past practice in Ramsey and recent projects (Bunker Lake Industrial Park, Stone Brook). Staff is recommending Affinity pay 100% of all public infrastructure costs upfront (including the city's portion), for to Affinity design/ plan the public infrastructure work, and for Affinity administer the construction of said work. In return, staff is recommending the city pay back Affinity over time, with interest, via the existing COR TIF District #14. It's expected the repayment period would be about 8-9 years (i.e. the city would pay back their portion of public infrastructure costs over the course of about eight years via TIF). This arrangement is ideal for the city as it eliminates the risk of issuing a bond or upfront financing, and is paid on performance (i.e. we only pay TIF after property taxes are collected). BUSINESS SUBSIDY?