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<br />Item No: 02 <br />Meeting Date: December 5, 2016 <br />Type of Business: Work Session <br /> <br />City of Mounds View Staff Report <br />To: Mounds View City Council <br />From: Brian Beeman, Business Development Coordinator <br />Item Title/Subject: Review Crossroad Pointe Redevelopment Site <br /> <br />Introduction: <br /> <br />Crossroad Pointe is a 4.25 acre, city owned redevelopment site at the intersection of <br />County Road H2 and Mounds View Boulevard. Because The Beard Group has backed out <br />of their proposed project to build a 205 unit multi-family complex which was anticipated to <br />break ground late in the fall of 2016 or early spring of 2017, staff would like to revisit the <br />City Council’s vision as to the type of development desired for the project area. <br /> <br /> <br />Background: <br /> <br />On June 29, 2015, members of the City Council, Planning Commission, Economic <br />Development Commission and City Staff toured three newer multi-family rental housing <br />developments in order to give Council and Commissioners an opportunity to see first-hand <br />the types of multi-family housing that are now being constructed. The desires and <br />demands of renters have changed and today’s apartment buildings have high-end finishes <br />and many on-site amenities. Many people, from young professionals to empty-nesters, are <br />now “renters by choice” rather than wanting to be homeowner. <br /> <br />At the July 6, 2015, City Council work session, the Council met with the Planning <br />Commission and Economic Development Commission to review observations and general <br />feedback from the tour held June 29, 2015. The Council concluded that since the city <br />actively has developers who are interested in the Crossroad Pointe site, staff should gather <br />the developer proposals and bring them forward for Council review. <br /> <br />Subsequent to the July 6, 2015, City Council work session, staff corresponded with over 40 <br />developers. Approximately seven developers showed serious interest in the site, including <br />the Beard Group, who had developed a facility in Osseo which had been toured on June <br />29th. <br /> <br />On January 25, 2016, the EDA approved the predevelopment agreement between The <br />Beard Group and the City. The purpose of the predevelopment agreement was to allow for <br />a period of time to complete the due diligence on the site. Originally, The Beard Group had <br />intended to build all market rate apartments, however they considered an affordability <br />component in an effort to capture Tax Credits to help fund the project. The Tax Credit <br />program required them to have at least 20% of the project affordable. Despite the benefit <br />of the tax credits, the project was not deemed to be feasible from a cost perspective.