Agenda - Council - 07/28/2026 - Laserfiche WebLink

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Mr. Hagen explained that the Council ultimately determines the sale price because the City owns the property. However, lowering the price would affect the Tax Increment Financing financial plan. Staff believes the proposed land price, together with the Local Affordable Housing Aid funding, strikes a reasonable balance between recovering the City's investment and supporting the project. Councilmember Buscher added that the proposed financing package resulted from extensive discussions between City staff and Elevate Hope House to reach an agreement that worked for both parties. Councilmember Stewart asked whether using $250,000 in Local Affordable Housing Aid funds for this project would reduce funding available for Ramsey residents participating in the future Front Door home improvement program. Mr. Hagen explained that the City currently has about $435,000 in available Local Affordable Housing Aid funding and expects to receive additional allocations each year. Community Development Director Stephanie Hanson added that even after funding this project, the City expects to have more than $500,000 available when the Front Door program begins in early 2027. She also noted that the funds must be used within state deadlines or they could be lost. Councilmember Buscher said she had previously opposed using Local Affordable Housing Aid funds for traditional apartment projects but viewed this proposal differently because of its nonprofit mission, affordable housing component, and community gathering space. She said the project better reflects the type of investment the Council envisioned when using these funds. Councilmember Stewart asked how the City would protect its investment if the property were sold after construction. Ms. McDermott said the organization has no plans to sell the property but would be willing to discuss additional safeguards if the Council wanted them. Councilmember Peters asked how the $250,000 funding request was determined. Mr. Hagen explained that Elevate Hope House originally requested about $300,000, but after discussions with City staff, the request was reduced to $250,000 while still allowing the project to move forward. Ms. McDermott added that Local Affordable Housing Aid funding may be used only for eligible housing costs and not for the commercial coffeehouse portion of the development. Councilmember Stewart also asked about the affordability requirements for the apartments. City Council Work Session / July 14, 2026 Page 3 of 14