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<br />public money available for the project if all the units were in the "affordable category. The <br />market rate units aren't necessary to the project and may make the project more difficult to <br />complete. Secondly, MHF A is concerned that currently there is not a developer committed to <br />developing the first floor retail. Mr. Norman noted that there would be an opportunity for the <br />City to work with ACCAP as a partner on the commercial/retail side. <br /> <br />Jeff Johnson, representing ACCAP - Ramsey Town Center Apartments Limited Partnership, <br />gave a brief explanation of the financing process. He explained that market rate apartments <br />would require a rent of a dollar per square foot in order to cover the cost of construction and <br />operation. MHF A raised the issue that they did not feel that the proposed location would support <br />rents in that range because of the area and the lack of underground or heated parking. <br /> <br />City Administrator Norman noted that the other concern of the MHF A was related to the <br />commercial/retail space. He explained that there would be an opportunity for the City to manage <br />that area utilizing the City's HRA. <br /> <br />Mr. Johnson explained they had initially had discussions with RTC regarding the development of <br />the commercial/retail space but those discussions never made it to an agreed upon development <br />agreement. Therefore, MHF A has concerns about how the sale and operation of the commercial <br />space work would work. That being said he noted that they did have time to identify a partner on <br />that portion of the project. <br /> <br />Mayor Gamec inquired what the rent was for the ACCAP townhomes on TH47. <br /> <br />Mr. Johnson replied that for 2007 the rent for a 2-bedrrom unit would be $800 and $900 for a 3- <br />bedroom unit. <br /> <br />Mayor Gamec stated that he is reluctant to have the City be involved with the operation of the <br />business portion of the project. He indicated that he was very supportive of the project itself and <br />is in favor of the commercial/retail space but would prefer there be an outside partner rather than <br />the City. <br /> <br />Councilmember Jeffrey inquired as to when the next window for RFP's was for the MHFA <br />financing. <br /> <br />Mr. Johnson explained that there would be an opportunity in February, but June is when most of <br />the funding is made available. <br /> <br />Councilmember Jeffrey questioned if it was fair to say that they needed to be ready to resubmit a <br />proposal in June, but possibly in February. <br /> <br />Mr. Johnson replied yes. <br /> <br />Councilmember Jeffrey pointed out that if they don't have to re-submit their RFP until June there <br />was adequate time to work with an outside partner on the commercial/retail space. He also was <br />reluctant to have the City involved with the management of the commercial/retail space. <br /> <br />City Council Work Session / December 4, 2006 <br />Page 2 of9 <br />