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