Agenda - Council - 07/14/2026 - Laserfiche WebLink

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7. 1. CC Regular Session Meeting Date: 07/14/2026 Primary Strategic Plan Initiative: Promote economic growth and development. Title: Consider Adoption of Resolution #26-158 Approving Purchase Agreement, Right of Re -Entry Agreement, LAHA Funds and Sale of Outlot B, COR Stone Brook Academy Elevate Hope House for Mixed -use Project. Purpose/Background: The City Council may choose to go into closed session pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the EDA chooses to enter into to closed session the statute and reason above needs to be referenced along with legal description (Outlot B, COR STONE BROOK ACADEMY) and the Anoka County Tax ID number 28-32-25-31-0023. This parcel is also known as Parcel 47c. The purpose of this case is to consider the sale of Outlot B, COR STONE BROOK ACADEMY to Elevate Hope House (EHH), a Minnesota non-profit corporation to build a minimum 8,500 square foot Mixed Used Coffee Shop/ Retail / 3 bedroom affordable 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 EDA, and Elevate Hope House have negotiated the attached Term Sheet, PA and Right of Re -Entry for Council review and approval. The site is properly zoned for the proposed use. Melinda McDermott, President of Elevate Hope House will be at the City Council meeting to provide additional information about Elevate Hope House and to answer questions the City Council might have. Notification: A Sales Ordinance has been adopted for the sale of this parcel. A Business Subsidy Public Hearing is not required as this project is a housing project. No further notifications are 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 in the COR. 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 the 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 City Council, an additional agreement relating to the LAHA funding and reporting requirement for the affordable housing apartment units will need to be reviewed and approved by the City Council. The City currently has 435K in LAHA funds available and has previously directed staff, through work session consensus, to develop some loan/grant programs to use the funds on eligible projects targeting single-family home improvements and health and safety improvements that qualify for the LAHA Funds. 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. The City Council is scheduled to meet in work session prior to the July 14th City Council Meeting to review the request by Elevate Hope House and to determine if the proposed use of funds would be supported by the City Council. Specifically, 55K in LAHA 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. EHH asked for 300k in LAHA funds but the amount being proposed and recommended by the EDA to Council is 250k. Staff negotiated a lower amount based on funds availability and the establishment of new loan programs. If LAHA Funds are approved, a separate agreement will need to be drafted outlining the terms and conditions of the use of the funds and requirements to report annually on the required affordable housing components. Key Terms Real Estate Acreage Buyer Asking Price Tax ID Number: 28-32-25-31-0023. Outlot B, COR Stone Brook Academy (Parcel 47c) Approximately 0.52 acres or 22,651 SF Elevate Hope House, A Minnesota Nonprofit Corporation $149,500 ($6.50 / SF)