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EDC Minutes May 20, 2016 Page 2 of 10 6. REPORTS OF STAFF Crossroad Point Redevelopment Project Business Development Coordinator, Brian Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site. Beeman stated that The Beard Group and City of Mounds View had signed a preliminary development agreement to allow the developer time to do their due diligence. The Beard Group conducted a market demand study and the demand for rental housing came back much stronger than originally anticipated. Because of the strong demand, The Beard Group is planning to increase the number of units from 119 to 205 with 251 bedrooms. They will need the entire 4.25 acres as originally planned. City staff has learned that The Beard Group received an $85,000 subsidy from Ramsey County for this project. The developer is also considering Tax Credits and a Housing TIF. Staff is still waiting to hear back from The Beard Group. They are meeting with architects & consultants and working through design, costs, and parking ratios. They plan to construct the building in phases. Meaning, the outside of the building will look completed while the inside may only have one or two floors finished with the plan to lease those units right way while finishing the other floors. Once the developer is ready, they will contact the city and a meeting date and time will be set to further discuss the project. The developer plans to break ground sometime in August or September 2016 with the idea of opening the leasing office in 2017. Commissioner Helgemoe asked if there were plans for any retail in the project. Beeman said as of the latest plans, the entire project is slated to be all apartment units with no mixed-use. Mixed-use facilities have struggled in the past few years therefore, the developers have been hesitant in adding retail to their buildings. Commissioner Dahlstrom asked if the apartments will be Section 8. Beeman said 20% of the units will be required to be affordable as part of the minimum requirements for both Tax Credits and a Housing TIF. Beeman explained that if a financing gap exists caused by the primary lender not lending the entire project cost amount, then this creates a gap in the financing. In order to fill the gap, Tax Credits as well as a Housing TIF, and a possible land write down, in addition to the $85,000 Ramsey County already awarded, may be required for the project to be successful. Commissioner Dahlstrom asked if this was the best solution for Mounds View. Beeman Said this is a policy decision and one reason to have the preliminary development in place is for both sides to do their due diligence. When the time comes, both the developer and City Council will discuss if the project should go forward or if any alterations need to be made to the project in order for it to go forward. This is the reason for a preliminary development agreement. Both sides must be in agreement before moving forward. Beeman noted that if the EDC has any suggestions or comments, he can bring those forward to the City Council for consideration.