Agenda - Council - 08/25/2026 - Laserfiche WebLink

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Mid - $22,440,000 or $220,000/unit High - $24,990,000 or $245,000/unit Staff used the Middle estimated assessed valuations for the TIF and future property tax analysis. Taxes and TIF The parcel is not in TIF 14 district. Trident has requested the creation of a new 18(20) year Housing Tax Increment District and to retain 95% of the available increment. The estimated annual property taxes for the completed projects are $306,617 for the AL/MC building (TIF) and $263,986 for the IL building (not included in TIF). Currently, the land proposed for the MC/AL project is generating $23,211 in property taxes annually and the IL Land is generating $10,708 in annual property taxes. The Developer is seeking tax increment financing for the MC/AL project only. Under the $22.44M tax assessed valuation scenario for the MC/AL project, it would generate approximately 250K annually and 4.38M in Raw TIF over the 18-year TIF Housing District. Under the 95% (developer) / 5% (City) scenario, this would equate to 237K (Trident) and 12.5K (City) annually. Please note that the City does not anticipate any costs to be incurred by the city as a result of this project other than administrative costs to create and maintain the district for upping the percentage for the developer does not financially hurt the city. Ehlers has put together a memo analyzing the project and the need for assistance which has been reviewed by the EDA and Council in the past. Zoning The proposed development property is currently zoned COR-1 (mixed use core sub -district) which is zoned appropriately for the proposed project. Staff has communicated the design standard for the COR 1 district, which requires the highest level of materials and connectivity to the street. The proposed memory care and assisted living use traditionally does not typically see a lot of mobility outside the building to adjacent businesses by its residents, although visitors will be coming and going to the site on a regular basis which could visit businesses in the COR. However, the 84-unit independent living project proposed along Sunwood Drive NW will include active seniors that will provide many customers for businesses in the COR. Notification: No Public Hearing is required for the proposed action to approve the TIF Agreement as this is a Housing TIF District and the proposed assistance does not constitute a Business Subsidy Time Frame/Observations/Alternatives: The Developer is planning to submit a site plan later this year and to commence construction in 2027 after the approval of TIF Agreement requested herein. Trident has provided a Demand Assessment for Senior Housing in Ramsey Study which has identified the following demand for 130 Independent Living units, 62 Assisted Living units and 47 Memory Care units by 2030. This addition to the COR will help fill a need and provide housing options that are not already provided within the COR. The raw TIF ask is for approximately 4.147M in raw TIF with a present value of 2.35M. The City Council, through consensus at the March 24, 2026 Work Session, was supportive of the project as presented and also reviewed and called for a public hearing on May 26, 2026. The EDA reviewed the TIF Request at the May 14, 2026 Meeting and unanimously adopted a recommendation to the City Council in support of the level of assistance being proposed for this multi -faceted housing project. This Council action is to approve Tax Increment Financing Development Agreement with Ramsey Senior Housing, LLC. Ethical Labor Practices / TIF Development Agreement The TIF Agreement presented for council consideration has added language to have the Developer Subcontractors to commit to ethical labor practices already required by state law. This language has not previously been used in prior TIF agreements but should serve as some protection of labor working on this project here in Ramsey. The Developer has reviewed this TIF Agreement and finds it acceptable. Alternatives: 1)Adopt Resolution #26-197 Approving Tax Increment Financing Development Agreement; Ramsey Senior Housing, LLC (as presented); Subject to Bond Attorney review