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