09/06/2001 EDAC Minutes - Laserfiche WebLink

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3 Mr. Wessel noted that of the six voting members present, the vote was split. It was noted that Mr. Rafferty is a liaison from the P&Z. Ms. Carlson stated that the Village is intended to be a more special project, and she could see an 8-year subsidy for that. Mr. Chase stated that school districts have never understood subsidies, and don’t see that these projects directly benefit them. School districts need to participate in economic development. Mr. Hicks said VILLAGE DEVELOPMENT Ms. Divine said the Village development is interdependent on a lot of things happening, including the Marketplace, the YMCA and site control. So this year’s LCDA application is the same as last year, for $1.5 million to secure the Tagg property. John Duffy, the developer interested in senior housing on the city property, partnered with the city to complete a market study. Preliminary results show a very strong market for senior housing, with a stronger market by 2006. The market is for higher end, higher amenity housing. Affordable housing for seniors is close to saturated in the market area. Twenty percent of the units would be affordable, but the remainder would be higher rents. However, the higher end apartments cannot be built next to a sandblasting site. The marketers are taking a closer look at the rental rates of a project next to the industrial site versus within a Village. Mr. Rafferty asked what the options are if the grant is not received. Is condemnation a possibility. Ms. Divine said it will take public assistance because of the type of development it is. The Target project can spur more interest. Mr. Wessel stated the Taggs have been consistent in their price, which is $3.50/SF for 29 acres, 10 of which are wetland, plus $1.5 million to relocate. That is not what the current market will pay. The last alternative is an RFP as a commercial property and let it develop as a conventional center. Mr. Hicks questioned why the city tries to find $3.50/SF if the market isn’t there, why not wait rather than pay above market. Ms. Divine stated that is why these types of grants are available, because the Metropolitan Council recognizes these types of developments are hard to get. The city doesn’t have regulatory mechanisms to guarantee the Village. So unless we continue down this path until there aren’t any other options. It will be very easy to lose the vision to conventional development. Meeting adjourned 8:30 a.m.