Agenda Packets - 2025/09/08 - Laserfiche WebLink

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Item No : 7A MOUNDS VIEW Meeting Date: September 08, 2025 Type of Business: EDA BUSINESS Administrator Review ON of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: 2716 Hillview Road, SMC Construction, Inc.-Sinan Music Background SMC Construction Inc., owned by Sinan Music, a resident of Mounds View, MN is proposing to purchase the 0.7 acre City of Mounds View Economic Development Authority (EDA) lot located at 2716 Hillview Road in order to construct four townhomes with garages. Mr. Music proposes to construct 2-3-bedroom energy-efficient homes approximately 1,600-1,800 sq. ft. each. These will be long-term market rate rentals owned and managed locally by Sinan Music. Mr. Music believes that this project will expand the mix of housing options in Mounds View, offering modern rental for families and professionals. He is estimating that this will add additional tax revenue growth to roughly $300,000 - $325,00 per unit with the total project value of approximately $1.3 million, generating an estimated $21,520.59 in total annual property taxes. Mr. Music has over 15 years' experience of being a landlord in Minnesota, with over 10 different properties and styles in both residential and commercial. He would like to acquire the EDA property and finalize city approvals late 2025 and begin and complete construction in 2026. Lease up would begin early 2027. He is making an offer on the EDA lot which will be discussed during the closed portion of the EDA meeting. Discussion A concept plan and examples of what Mr. Music is proposing on the site and style of housing are attached. Mr. Music plans to be present during the open portion of the EDA meeting to explain and answer any questions relating to the project. Mr. Music will not be permitted to attend the closed portion of the EDA meeting where the offer on the EDA lot will be discussed. The EDA to review and discuss Mr. Music's housing development proposal to determine if this is a good fit for the site, ask detailed questions to the developer, and provide feedback as to if this project should be allowed to proceed. Should the EDA decide to continue with this project, several steps will need to be taken including but not limited to an amendment to the Comprehensive Plan through the Metropolitan Council and a Purchase & Development Agreement. Strategic Plan Strategy/Goal Maintain a positive business climate where businesses want to locate and remain in Mounds View. Finance top redevelopment areas Industrial/Commercial/Residential.