10-21-2016 Cancelled - Laserfiche WebLink

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Item #: 6A Meeting Date: October 21, 2016 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Reports of Staff A. Crossroad Pointe Redevelopment Project On January 25, 2016 the EDA approved the predevelopment agreement between The Beard Group and the City of Mounds View. The purpose of the predevelopment agreement is to allow for a period of time to complete the due diligence on the site. On October 12 The Beard Group notified the City that they will be pulling out of the project. Below are their comments: Brian, I’m glad to hear that you are getting interest on the site. At this time I think The Beard Group is going to have to move on from the Crossroad Pointe project. We do not see a feasible way forward with financing. There is no way for us to do a market rate apartment and there are a number of complications in trying to do an affordable deal, time being a major one. We tried numerous avenues to make it work but unfortunately none of them work with what we want to do and with what the city wants. We are still interested in pursuing development opportunities in Mounds View and would look forward to working again with the city on a future development. It has been great to work with you and the city of Mounds View. I’m sorry that we weren’t able to put something together. Best Regards, Ben Beard There intentions have been to build all market rate apartments, however the Tax Credit program requires them to have at least 20% of the project affordable. This requirement made the project more expensive and they were not able to find a solution to meet their financing options. As a result, staff will refocus their efforts in attracting a new developer to the site. With the Rice Creek Commons development, land prices are expected to increase in the area. On the contrast, the City’s project is now a year behind and has increased competition.