Agenda - Council - 08/08/2023 - Laserfiche WebLink

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The economics outlined above and on the attached exhibits show all proposed projects and the potential financial impacts for the City of Ramsey. All of the proposed housing projects do not maximize the land sale revenue for the north portion of Parcel 46, but the future tax revenue and TIF does make up some of that gap. A large format retail user, other commercial uses and apartment projects would 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, townhome housing developed on this site and the City has been unsuccessful in attracting a big box retailer to this location. Both Capstone and Centra are proposed quality products that will generate significant tax revenue and will result in an increase of population density in the COR. However, the Centra proposal was recommended by the EDA based on its compliance with the COR Design Framework and that it did not ask for a reduction in Park Dedication fees. Key Terms of Purchase Agreement: Property Description - Part of Outlot A, COR TWO (pt, 28-32-25-22-0058) Lot Size - 16.3 acres (710,028 SF) Sales Price - $640,042 ($6,214 / approved unit or $0.90/SF) Earnest Money - $25,000 Commission - 5% of sales price to CBRE Development - 103 detached town home units Right of Re -Entry- Required - 40 units in 5 years- (Format same as previous Centra Land Sale) Closing - 30 days from Notice to Proceed (2 - lOK extensions) The City Council should consider the following questions before providing staff direction for the development of Parcel 46: 1) Is the City Council supportive of the proposed single family residential development on Parcel 46 instead of waiting for a large format commercial user or other development type? 2) Does the City Council like the housing product and layout that is being proposed in the COR? 3) Is the City Council supportive of a zoning change from a COR Zoning District to COR 2A, COR 2B or R-2? 4) Is the City Council supportive of a housing product that is not compliant with COR Framework? 5) Is the City Council supportive of a reduction in Park Dedication Fees to support affordability as referenced in the Capstone proposal? Alternatives: 1) Motion to Resolution #23-173 Approving Purchase Agreement for Portion of Outlot A, COR TWO; Centra Homes -Parcel 46 (as presented) 2) Motion to Resolution #23-173 Approving Purchase Agreement for Portion of Outlot A, COR TWO; Centra Homes -Parcel 46 (with changes) 3) Motion to reject the attached offer and hold the land for future development 4) Something else Funding Source: N/A Recommendation: The EDA passed a motion (it was not unanimous) to recommend the City Council select Centra Homes as developer and to execute a Purchase Agreement with the terms included in the developer's proposal. A copy of the draft minutes from the July 13, 2023 EDA Meeting is attached which includes the discussion related to the approved motion. Resolution #23-173 (as presented) reflects the terms of the purchase agreement and right of re-entry agreement that the EDA recommended for approval at the July 13, 2023 EDA meeting. Outcome/Action: