Agenda - Council Work Session - 07/14/2026

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2. 2. CC Work Session Meeting Date: 07/14/2026 Primary Strategic Plan Initiative: Promote economic growth and development. Information Title: Consider Use of LAHA Funds for Elevate Hope House (EHH) for Mixed -use Housing Project Purpose/Background: The purpose of this case is to discuss the use of Local Affordable Housing Aid (LAHA) to help subsidize a 8500 SF two- story mixed -used Coffee shop / 3 bedroom apartment. The Mission of EHH is to help families move beyond survival by creating pathways toward independence and long-term success. Today, Elevate Hope House operates a growing continuum of housing in Anoka County as evidenced in the attached proposal. The City of Ramsey, and Elevate Hope House have negotiated the attached Tenn Sheet, PA and Right of Re -Entry for consideration of City Council Approval this evening's review. The LAHA request is for 250K which includes 55K for land acquisition and 195K for construction costs related to three income -qualifying apartments. Melinda McDermott, President of Elevate Hope House will be at the work session to provide additional information about Elevate Hope House and to answer questions the Council might have. Notification: A Sales Ordinance has been adopted for the sale of this parcel. No further notification is required. Time Frame/Observations/Alternatives: Staff has been working with Elevate Hope House this spring to bring a mixed -use project similar to the one Storyteller Cafe proposed on the same lot. The mixed -use coffee shop/event space and affordable apartments should fit nicely on the proposed site. Elevate Hope House has a track record of success here in Anoka County, and they are trying to expand their footprint here in Ramsey. The proposed use is permitted within this COR zoning district. Use of Local Affordable Housing Aid (LAHA) is being proposed to help finance the project. If the project and proposed financing structure is approved by the EDA and City Council, additional agreements will need to be reviewed and approved by the EDA/City Council. The City currently has 435K in LAHA funds available and is also working on putting together some loan/grant programs to use the funds on eligible projects. The use of the 250k in LAHA funds being proposed in this case is not consistent with the new programs being created, but the use of the funds being proposed is permitted. Specifically, 55K will be used toward their purchase price and an additional 195k committed to costs related to the construction of affordable housing meeting the 40% of 60% AMI requirements. A copy of the draft policy (which has not been adopted) is attached to this case for reference. EHH asked for 300k in LAHA funds but the amount being proposed to the EDA is 250k. Staff negotiated a lower amount based on funds availability and the establishment of new loan programs. Alternatives: 1) Council Consensus to provide of 250K in LAHA funds to Elevate Hope House for Mixed -use Project 2) Council Consensus to support the Sale of City Land to Elevate Hope House for Mixed -use Project (without the provision of LAHA funding) 3) Something else. Funding Source: Metro Sales Tax / LAHA Funds Recommendation: On June 11, 2026, the EDA passed a motion to recommend to City Council to approve Purchase Agreement, Right of Re - Entry Agreement, LAHA (250k) and Sale of City Land to Elevate Hope House for Mixed -use Project in COR Outcome/Action: Consensus by the Council on whether to support the use of 250K in LAHA for the proposed project by Elevate Hope House.