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EDC Minutes November 18, 2016 Page 2 of 8 Beeman informed the Commission that no resolution or motion is required by the EDC. Dahlstrom’s vacancy will be posted with the other EDC vacancies with one seat to fill the remainder of Dahlstrom’s term ending December 31, 2017. 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 provided a background stating that he had received a note from The Beard Group that they had changed their plans to construct 119 units to 205 based on market study demand, however their financial consultants couldn’t make the numbers work even with their proposed Housing Tax Credits, a land write down, and the Ramsey County Housing grant. They felt they would not be able to meet the deadline and demands for the project and as a result, had to back out of the project. However, they left open the possibility of doing business with the City in the future. The Tax Credit program requires a 20% affordability aspect which increased the cost of the project causing them to look at lessor quality materials and the developers didn’t want to go down that road. In the meantime, Coordinator Beeman has been talking to other developers. A Council work session is scheduled in December to reevaluate and consider the vision for the Crossroad Pointe site. Beeman said he has received requests for storage units, day care, outdoor storage, and flea markets; however the City felt these types of requests did not fit the intended use and vision for that area. If the City’s intent was to fill the space as quickly as possible with whatever use came to the City first, then that could have been accomplished, however the City’s vision is to use the space wisely for long - term implications and have a product that the community can be proud of in the long- term rather than just filling the space. If the City would have had a project in mind when the three buildings were demolished, then a TIF could have been better utilized. However, rather than allowing the buildings to sit vacant for years, creating more blight in the area, the City felt that demolishing the three buildings was the best decision at the time. The down side is that if a TIF is to be used for that area in the future, the use of the TIF will be limited. Recently, there have been inquiries from developers for restaurants, senior housing, and affordable housing. Maybe with The Beard Group backing out, this will give the City time to reevaluate what makes the most sense for the site. Staff will be seeking further direction from the City Council and is encouraging the EDC to make suggestions. Beeman will bring those suggestions forward to the Council or the EDA Members can attend the meeting which is public. Commissioner Helgemoe asked when the TIF district ends. Beeman said there is no longer a TIF district on that site. The City would need to recreate a TIF district if a new project requires it. This is why an EDA levy is important. Beeman said this is why the government gets involved in economic development. If it doesn’t work for the private sector then government comes along side to assist the development to help spur economic growth. Rather than having vacant lots and blighted buildings with little tax valuation and an eye sore to the community, government’s role is