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not support the project and proposed term sheet. He referenced the comments by Member Howell <br />and noted that if desired, there could be a cap on the number of affordable units. He stated that <br />from a tax perspective there would be benefit in placing this property onto the tax roll and would <br />assist the City in coming into compliance with density as regulated by the Metropolitan Council. <br />He stated that the majority of manufacturers speak of the challenge with workforce, and this could <br />bring new workers to the area. He believed that the location is a good fit, with the density further <br />away from the single-family homes in the area. He commented that staff believes that this is a <br />quality project and developer and acknowledges that this is a large financial ask, noting that this <br />is pay -go financing so the City would not be providing any financing front. He commented <br />that he has seen projects from this developer in other communities re great projects. <br />Member Stewart commented that she would like to see a cap on the percentage of affordable units <br />at 20 percent. She commented that she also likes the look provision and 20-year length for <br />the term of financial assistance. <br />Member Johnson asked if a cap could be placed on bility given market con ions iythe future <br />for the affordable units. <br />Economic Development Manager Sullivan replied that would be contrary to what the other <br />members appear to be asking for. <br />Member MacLennan stated that he also lis the cap of 20 percent the affordable units. He <br />stated that he does have some concern witha length of 20 years but also acknowledged that the <br />property is currently not generating property taxes. He asked for details on the lookback clause <br />and its term. <br />Mr. Aarsvold provided details on <br />project is 95 percent occupied, an <br />typical loo ti . c period, which typically occurs when the <br />lained the p - ss. <br />Economic Development Manager Sullivan asked if the cost to complete the lookback is paid for <br />by the developer. <br />Mr. Aarsvold confirmed tha guagan be included in the ultimate agreement. <br />Member Riley commented th he EDA has done a great job focusing on the dollars and the term <br />sheet. He acknowledged that he term sheet is just the first step in this process and other groups <br />within the City would focus on other project details such as traffic and zoning. <br />e'ht <br />Economic Developm Manager Sullivan confirmed that the EDA is a recommending body, and <br />its recommendation would move forward to the City Council. He stated that if support is also <br />provided by the Council, that would give the developer some confidence in moving forward in the <br />site plan and planning process. <br />Member Howell asked for details on the competition this would create with a nonprofit receiving <br />financial assistance from the City compared to developers that are providing market rate <br />apartments without assistance from the City. <br />Economic Development Authority/ July 13, 2023 <br />Page 5 of 10 <br />