Agenda - Economic Development Authority - 07/13/2023

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Economic Development Authority (EDA) Meeting Date: Primary Strategic Plan Initiative: 07/13/2023 (A! Aud_pd84) 4a,1 4. 2. Title: Consider Offers to Purchase and Develop a Portion of Outlot A, COR TWO Purpose/Background: The EDA may choose to go into closed session pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the EDA chooses to enter into closed session, the statute and reason above needs to be referenced along with legal description Outlot A, COR TWO and the Anoka County Tax ID number 28-32-25-22-0058. The purpose of this case is to review two offers to develop a portion of Parcel 46 for a single family townhome development. Both Centra Homes and Capstone Homes have been working with City staff on development proposals for approximately 16 acres of land north of the future W. Ramsey Parkway. Both developers will make a presentation for their projects and be available for questions. It should be noted that both of the offers are at the low end or below the deal range for Parcel 46. The City will also be spending additional funds for tree removal, grubbing, incidental wetland filling, soil importing and compaction on Parcel 46 to prepare it for development (— $1,145,800). Zeolite Street NW and W. Ramsey Parkway adjacent to the site will also need to be constructed to bring this project to market. (— $2,368,000) Based on the offers, it is clear that the purchase price alone will not cover the cost of these improvements. However, when you consider the purchase price and expected TIF generation for each project, the projected revenue exceeds the expenditures in most cases. Each project also generates over 1 Million in development fees. Both properties will require a re -zone to a residential district. The Centra project meets COR Framework Design standards and would require a rezone to COR 4A or COR 4B. The Capstone project is not compliant with COR Framework design standards and they are requesting a rezone to R-2 which does not have the higher COR Framework standards. The addition of 103-130 new housing units will result in a significant population increase that helps draw interest in retail and restaurants. It should also be noted that both developers expressed an interest in developing the three acre commercial site on the Northeast corner of Sunwood Blvd and Armstrong Blvd residentially but this was not included in the analysis based on the EDA and Council preference to see commercial development on that corner. Staff suggests going into closed session after the presentations have been completed by both developers to further evaluate the proposals and to consider offers and counter-offers. Notification: N/A Time Frame/Observations/Alternatives: The economics outlined above and on the attached exhibits show all proposed projects and the potential financial impacts for the City of Ramsey. Staff has put together an additional Capstone scenario that assumes that Wetland 2 is not able to be filled and includes 103 units to mirror the amount proposed in the Centra development. All of these projects do not maximize the land sale revenue for the north portion of Parcel 46 but the tax revenue does make up some of that gap. A large format retail user, other commercial uses and apartment projects will likely command a higher per square foot cost. However, both the City Council, Planning Commission and the EDA have been supportive of single family, owner occupied, housing developed on this site