Agenda - Council Work Session - 03/24/2026

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For the purposes of this case, Staff is using the Middle estimated assessed valuations for the preliminary TIF and future property tax analysis. All data will be reviewed by Ehlers during the underwriting process if the project moves forward. Taxes and TIF (update) The parcel is not in TIF 14 district. Trident has requested the creation of a new 18(20) year Housing Tax Increment District and to retain 95% of the available increment. The estimated annual property taxes for the completed projects are $306,617 for the AL/MC building and $263,986 for the IL building. Currently, the land proposed for the MC/AL project is generating $23,211 in property taxes annually and the IL Land is generating $10,708 in annual property taxes. The Developer is seeking tax increment financing for the MC/AL project only. Under the $22.44M tax assessed valuation scenario for the MC/AL project, it would generate approximately 251K annually and 4.92M in TIF over the 18-year TIF Housing District. Under the 95% (developer) / 5% (City) scenario, this would equate to 237K (Trident) and 12.5K (City) annually. Please note that the City does not anticipate any costs to be incurred by the city as a result of this project other than administrative costs to create and maintain the district fo upping the percentage for the developer does not financially hurt the city. Based on recent negotiations, Staff has put together an updated TIF Estimate showing the previous 25 year and current 18 year proposals. Staff has also put together an attached summary document that provides an estimate of each building, taxes and estimated TIF for discussion purposes. Zoning (previously provided March 10, 2026 - No changes) The proposed development property is currently zoned COR-1 (mixed use core sub -district) which is zoned appropriately for the proposed project. Staff has communicated the design standard for the COR 1 district, which requires the highest level of materials and connectivity to the street. 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. However, the 84-unit independent living project proposed along Sunwood Drive NW will include active seniors that will provide many customers for businesses in the COR. Next Steps - Council Direction (New direction requested) In order for the developer to be comfortable moving forward with the project and working on a formal site plan submittal, they will need to know if the City Council is supportive of the following development terms: • Creation of 18 (20) year TIF Housing District and the provision of TIF 95/5% Split. (previously 25 (27) year with 90/10% split) • TIF request is 4.18M (previously 5.54M) with a present value of approximately 2.48M. (previously $2.63M) Roger Fink from Trident Development will be present to answer questions the Council might have. Notification: None required at this time. If a TIF district is created and a business subsidy to be awarded, public hearings will be required. Time Frame/Observations/Alternatives: Revised TIF Request and Comparison to Previous Request The Developer is hoping to submit a site plan this year and to commence construction shortly after with the provision of TIF. Trident has provided a Demand Assessment for Senior Housing in Ramsey Study which has identified the following demand for 130 Independent Living units, 62 Assisted Living units and 47 Memory Care units by 2030. The new raw TIF ask is for 4.182M (previously 5.54M) in raw TIF with a present value of 2.48M (previously 2.63M). The Independent living project will not be in the TIF District. This project will generate