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7. COUNCIL BUSINESS <br />7.00: Adopt Resolution #20-013 Approving Notice of Default (Expiring Purchase <br />Agreement) for AEON Ramsey 2, LLC <br />Deputy City Administrator Gladhill reviewed the staff report. <br />Allen Author, AEON, stated that they have been excited over the past two to three years working <br />with the City to create a good partnership in the community. He explained that the type of <br />funding they use requires additional time. He stated that they have been through a few funding <br />cycles and feel that this may be their year to be awarded funding which would allow them to <br />complete the second phase. He stated that he understands why the City would be impatient and <br />does not want to have the site unused. He asked that they have the chance to work with staff to <br />create a resolution that would allow them to move forward. <br />Councilmember Kuzma stated that the first phase filled almost immediately and asked the need <br />anticipated for phase two. <br />Mr. Arthur replied that the need is abundant in the community. He stated that phase two is <br />modeled to include two, three, and four -bedroom units that would cater to families. He expected <br />that phase two would be filled within one month, similar to phase one. <br />Mayor LeTourneau stated that it appears there are members of the local and extended community <br />looking for this type of housing and it seems would be utilized immediately. He asked what <br />would happen to those families if this type of product is not available. <br />Mr. Arthur confirmed that there is tremendous need for housing for families of this type. He <br />stated that many of the families are paying 50 percent of their income towards housing, which <br />puts tremendous stress on their family. <br />Mayor LeTourneau stated that it would seem that this product would provide a solution for those <br />families that are struggling and having difficultly finding affordable housing. <br />Councilmember Heinrich asked for input on the residents that moved into phase one, as it was <br />her understanding that many of the occupants were from outside Ramsey and the local area. <br />Mr. Arthur agreed that not all of the residents were from Ramsey but believed that the majority <br />of residents in phase one were from Ramsey. He stated that he can provide additional data to the <br />Council tomorrow. <br />Mayor LeTourneau asked where the occupants of the housing product are working. <br />Mr. Arthur stated that typically residents of this type of housing product work minimum wage <br />jobs or are on fixed income, such as social security or veterans' benefits. He stated that he would <br />include that with the data he provides the following day. He stated that 17 percent of the jobs in <br />City Council / January 14, 2020 <br />Page 5 of 16 <br />