Agenda - Economic Development Authority - 08/10/2023

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Economic Development Manager Sullivan replied that each project has its own merits. He noted that the City is working with another developer that proposes to create a product that would exceed these rental rates, which would fund that project. He stated that this applicant has a mission as a nonprofit to provide some affordable housing as part of their projects and is one of the reasons the subsidy is needed. He stated that the assistance would help to pay for the affordable units rather than the market rate units and therefore did not see an issue with competition. Member MacLennan commented that this project would bring in worke nd capital dollars to the community and that should be the focus for the EDA. Member Johnson commented that putting a cap on the affordable units would not be something that she would want. She commented that the market can change and would want to see the developer have flexibility to provide affordable more unthat is somethi, they desired. Chairperson Wiyninger commented that having ra availabl below market rate doe not make financial sense beyond what is required, therefor. ld be not having a cap, Member Stewart commented that she believes the 20 pe ent cap would be wise with that many single-family homes near this project in or - er to keep the integrity of the project. She commented that in 20 or 30 years, she would not want to see 90 percent of the a its deemed affordable as that could impact the adjacent home values. Member Riley asked if the years and dollar move together on th erm sheet, using the example of ten years versus 20 and asked if that would then reduce the fi ncing by half as well. Mr. Aarsvold confirmed that to be true. He commend that the dollars and term are based on what the increment is projected to be during that time commented that ten years would equate to a little over h. of the total projected in the term sheet. Motion ember wart, seconded by Member MacLennan, to recommend to City Council to supp. - project with the term sheet and assistance levels as proposed with the addition of a cap of 21 percent on the number e� affordable units. Motion carried. meting Yes: airperson Wiyninger, Members Stewart, MacLennan, and Lindahl. Voting No em. s Howell, Johnson and Riley. Absent: None. 4.02: Consider Offers to Purchase and Develop a Portion of Outlot A, COR TWO Economic Development Manager Sullivan presented the staff report. Heather Lorch, Capstone Homes, commented that they have been following this parcel for almost one year and are grateful to present a proposed project this morning. She provided details on Capstone Homes and its mission. She reviewed the neighborhoods that Capstone has developed in Ramsey and other metro communities. She also provided details on Capstone's commitment to Homes for Hope, noting a dedication that will occur in Riverstone South later this morning. She Economic Development Authority/ July 13, 2023 Page 6 of 10