The EDA 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 a Minnesota non-profit corporation to build a minimum 8,500 square foot Mixed Used Coffee Shop/ Retail / 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 Term Sheet, PA and Right of Re-Entry for EDA review. The site is properly zoned for the proposed use. 

Melinda McDermott, President of Elevate Hope House will be at the EDA meeting to provide additional information about Elevate Hope House and to answer questions the EDA might have.

A Sales Ordinance has been adopted for the sale of this parcel.  No further notification is required.

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 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 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 are not consistent with the new programs being created, but the use of the funds being proposed are 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.  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.

Key Terms
Real Estate        Tax ID Number: 28-32-25-31-0023. Outlot B, COR Stone Brook Academy (Parcel 47c)
Acreage             Approximately .52 acres or 22,651 SF 
Buyer                Elevate Hope House, A Minnesota Nonprofit Corporation
Asking Price     $149,500 ($6.50 / SF) 
Offer Price        $85,000 ($3.75 / SF)
                -$30,000 Cash from Developer - $55,000 from Ramsey LAHA
Earnest Money        $20,000 Non-refundable upon Notice to Proceed being executed.
Inspection Period    180 days from Effective Date (Date City Council approves) (city requires plat/ site plan approval before sale).
Closing             Within 30 days of Notice to Proceed. 
Commission     This was a City generated lead for City property. Per the terms of the listing agreement, the City will pay 0% of gross sales price to CBRE.
Extensions to Close    Developer will deposit $5,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.  
City take care of    Provide existing ALTA Survey and updated Title Work. The Developer will contract to plat the property as part of the site             plan process. City to provide $55,000 in LAHA Funding to Purchase price.  City to Provide $195,000 in City LAHA Funding for project costs related to the construction of up to 3 units of affordable housing and related costs that serves households between 40%-60% AMI. Developer agrees to commit to at least one 2-bedroom unit meets the 40% threshold and to report  compliance as required by law and the City of Ramsey.
Performance        City to require construction of a minimum 8,500 SF commercial/residential mixed-use building compliant with COR Zoning requirements and obtain a Certificate of Occupancy one year after Closing for one residential unit and the retail restaurant space on the first floor.  If this is not done, the City may exercise the Right of Re-Entry. 
Assignment        Requires city approval if not same owners / company.
Contingencies        Securing $250,000 in LAHA Funding from City of Ramsey.

Review            
EDA (Sean): Land Transaction/ Purchase Agreement/ Right of Re-Entry
Planning Commission (Todd/Staff): Land Use, Development Agreement, Site Plan, Plat
City Council: Final Approval on both items

Alternatives:
1) Recommend Approval of Purchase Agreement, Right of Re-Entry Agreement, LAHA (250k) and Sale of City Land to Elevate Hope House for Mixed-use Project (as presented); Subject to City Attorney review.
2) Recommend Approval of Purchase Agreement, Right of Re-Entry Agreement, LAHA (250k) and Sale of City Land to Elevate Hope House for Mixed-use Project (with changes); Subject to City Attorney review.
3) Something else.

LAHA Funds

Staff recommends the EDA provided recommendation to City Council to approve of Purchase Agreement, Right of Re-Entry Agreement, LAHA (250k) and Sale of City Land to Elevate Hope House for Mixed-use Project (as presented); Subject to City Attorney review.

Motion to recommend to City Council to approve of Purchase Agreement, Right of Re-Entry Agreement, LAHA (250k) and Sale of City Land to Elevate Hope House for Mixed-use Project (as presented); Subject to City Attorney review.