Agenda - Economic Development Authority - 08/10/2023

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4.01: Consider Support of Financial Assistance for Presbyterian Homes Project; Haviland Fields Economic Development Manager Sullivan presented the staff report. John Fletcher, Senior Vice President of Presbyterian Homes and Services, thanked staff for their cooperation in this process and to Ehlers for their analysis. He stated that this project is a collaboration with Lord of Life Church and the development is named after the Haviland family. He commented that this development could bring intergenerationa ousing options to the community. He provided an image of the property with the newly prop ousing products that would include slab on grade park twin homes, a senior building, and two 20% affordable / 80% market rate apartment buildings. He provided details on Presbyterian Homes and Services, the development goals for the site and a summary of the proposed project. It'e provided some design samples. He reviewed some of the project considerations including project financials, property tax impact, positive City financial impact, significant public benefit, the "but for" test, and the financial request before the EDA. He also reviewid the financial impact with and without TIF, noting that the property is currently tax exempd would continue to be so if this were not approved. He reviewed the breakdown of estimated amity fees thattwould be paid through this development. He provided details on mixed income housing, noting that as proposed about 20 percent of the units would be priced as attainable for households earning 50 percent AMI. He noted that including the price restricted units, the projected average rent are $926, or 57 percent higher, than the average median rent in Ramsey. He provided a summrry of what the City would gain through this development and why financial support is needed.- Member Johnson recognized that public trans ► ation is not readily available in this area and asked if that has been considered. .014 Mr. Fletcher replied that while access to public tran .ortation is an asset, price sensitive housing is needed ever ere. He stated that regardless .; whether there is access to public transit, the units are f occupied almost immediately. —FIe stated that for the senior units, Presbyterian Homes has a network of buses that they use to circulate between the campuses. Member Stewart asked for informatio n the past developments that included affordable housing. Mr. Fletcher replied that those developments look identical to the market rate community, noting that they build a market rate Itilding and designate a portion of the units to have rents below that market rate. He stated that the product and units look no different, and just have a lower income requirement. He stated that this allows their residents to age in place as people transition in income after they retire. Member Stewart asked if the income restrictions increase over time. Mr. Fletcher replied that restriction remains in place as long as the TIF district is in place. Member MacLennan referenced the different age restrictions mentioned, 55 plus and 62 plus and asked for clarification. Economic Development Authority/ July 13, 2023 Page 2 of 10