Agenda - Council Work Session - 03/12/2024

Home

2. 1. CC Work Session Meeting Date: 03/12/2024 Primary Strategic Plan Initiative: Promote economic growth and development. Information Title: Review Proposed Senior Project by Trident Development and Deal Framework and to Provide Feedback to Developer Purpose/Background: The purpose of this case is to review a proposed 74 unit senior project by Trident Development in the COR and to review the developer deal framework, city participation and request for TIF. Project Description and Valuation Trident Development is proposing to build a 2-story 60 unit Senior Assisted Living building and a 1-Story 14 unit Memory Care building on 3.67 acres of Outlot A, Ramsey Town Center 13th Addition(Part of Tax ID 28-32-25-41-0022). The property is owned by Deal Family Holdings LLC. City Staff provided the Anoka County Assessor project information and the Assessor has provided an estimated assessed valuation and tax information for the proposed project. The County Assessor project a Low(12.1M), Middle(13.7M) and High (15.8M)based on varying costs based on the quality of materials used to construct the structure and on the level of facade finish. For the purposes of this case, Staff is using the Middle 13.7M assessed valuation for the body of the case. A summary attachment with all valuation scenarios and potential TIF splits is attached. Road Construction Trident is requesting that Peridot Street NW be constructed to where it would eventually connect with an extension of Veterans'Drive. This would create a 635-foot temporary dead-end street with a cul-de-sac entirely on the City owned Parcel 50. The length of this cul-de-sac exceeds the 600 feet limit from city road construction standards,however likely go away if, and when Veterans's Drive NW is constructed. The estimated cost for this section of Peridot Street NW,based on the COR Infrastructure Study dated February 24, 2023 is approximately $917,000. The Developer is proposing a 60% City($550,200)/40% ($366,800) adjacent property owner split in cost which has sometimes been used for major arterial roadways. Based on the fact that the City is the adjacent property owner to the east of the proposed Peridot Street NW the cost for the road would work out to be 80% City ($733,600) and 20%Trident($183,400). The construction of Peridot St NW is not currently in the City CIP. Taxes and TIF The parcel is not currently in the TIF 14 district. Trident has requested the creation of a 25-year Housing Tax Increment District and to retain 90%of the available increment. The estimated annual property taxes for the completed project are 174K. Under the 13.7 assessed valuation scenario, this project would generate approximately 134K annually and 3.345M in TIF over the 25-year TIF Housing District. Under the 90% (developer)/ 10% (City) scenario,this would equate to 120K(Trident) and 13K(City) annually and a 25-year total of 3M (Trident) and 333K(City). Staff has put together an attached summary document that provides an estimate of all valuations, taxes and TIF scenarios for discussion purposes. Zoning The proposed development property is currently zoned COR-3 (workplace sub-district), In order for the project to move forward on the proposed site it would need to be rezoned to COR-4c (neighborhood sub-district-15 units per acre or higher). The proposed memory care and assisted living use traditionally does not typically see a lot of mobility outside the building to adjacent businesses by its residents, although visitors will be coming and going to the site on a regular basis which could visit businesses in the COR.