Minutes - Council Work Session - 06/13/2006

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3) ACCAP Town Center Mixed Use Development Ass't Community Development Dir/HRA Executive Dir. Frolik reviewed that at the City Council work session on May 30, 2006, Council requested a breakdown of how the $400,000 in Ramsey dedicated Anoka County HRA levy funds would be allocated towards reductions in various City impact fees. Since that work session, ACCAP has revised their budget plan as follows: 1. $10,000 reduction in the estimated $107,170 sewer and water trunk fees due on the residential portion of the building. 2. $120,000 to establish a rent subsidy program for 4 units over a 10 year period. 3. $270,000 loan (for other eligible expenses) at 1.6% interest with the principal of $400,000 due in 30 years. Councilmember Jeffrey stated it should be clear that the City is not really reducing their fees; the applicant will be buying down fees with money that is included in the $400,000 Mayor Pro Tern Elvig asked if the City will be second in-line on the property. Jeff Johnson, consultant working with ACCAP, replied there will be 5 to 10 sources of monies; the City will be in a position where equity will be roughly equal to 50% of the transaction cost; loan to value will be roughly 60%. The City will have a mortgage on the property and would likely be in second position if requested. Mayor Pro Tern Elvig expressed his interest in this project and the mixed use. He stated the affordable component of this project will be good for the City and this mixed use is one of the only ways this project will get off the ground. 4) Review of Potential Layout for Bank Site - Shingobee Development Community Development Director Trudgeon explained staff has been talking with Shingobee Development for several months about the Phase 2 of their development directly north of the Coborn's development. They have been working on trying to achieve a scheme that works given what is envisioned for Town Center and what works for the market side and tenant mix. Shingobee submitted a drawing last week depicting the potential bank orientation and would like direction from staff and Council on how this potential layout would work. The bank will be a 14,000 square foot 2-story building with a drive-through in the rear and a drive along the western edge of the property parallel to Armstrong Boulevard. There is the possibility ofberming and/or landscaping to help minimize the visual impacts of the drive-through. City Administrator Norman explained included on the plan that has been presented are possible locations of the other potential buildings on this site. Staff does not agree with all of the proposals for the buildings on this site, but this is not before the Council tonight. The discussion tonight is regarding the orientation and layout of the proposed bank site. City Council Work Session / June 13, 2006 Page 5 of6