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The Mounds View Vision A Thriving Desirable Community Item No: 08C Meeting Date: December 9, 2025 Type of Business: Council Business City Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator Item Title/Subject: Consideration of a Fee Reduction on the Senior Suite Living Development at 7687 Long Lake Road Introduction: Hampton Companies, LLC is proposing to construct a 32-unit senior care facility at 7687 Long Lake Road. This is the Free Life Family Worship Center lot. Hampton Companies will be seeking a Comprehensive Plan Amendment and lot split via the Mounds View Planning & Zoning Commission. This will be a one level building. Mounds View doesn’t currently have a facility like this thus adding to the business diversity goal outlined in the 2026-28 Mounds View Strategic Plan. At the November 24, 2025 regular City Council meeting the Council discussed a request by the developer to reduce the Park Dedication fee by $80,000. Council decided that they were not interested in reducing the Park Dedication fee, however they would consider allowing the developer to defer paying the full Park Dedication fee until once the project has been approved and consider a reduction in other fees for the project to be determined by staff. The Council made a motion authorizing staff to negotiate with the developer within certain parameters. Staff discussed the situation with the developer and the developer agreed to pay the full amount of the Park Dedication fee after the project has been approved. In addition, the developer agreed to a one-time $40,000 fee reduction in another fee category. Staff has reviewed the various fees for the project and determined that the best area for the city to reduce its fees is in the building permit fees, followed by legal and planning fees. The anticipated building permit fee for this project is approximately $42,153.47. However, that amount has not been finalized. As staff is still waiting for the building permit application and will need to review before finalizing. Discussion: The developer is not asking for any other public subsidies in the form of a TIF, Tax Abatement, etc. The Planning & Zoning Commission will review the Comprehensive Land Use Plan amendment and lot split for the development in January. Strategic Plan Strategy/Goal: A progressive city that is welcoming and desirable destination for all ages and cultures, who seek progress through partnership, and a place where residents can live, work and play safely and show pride in the community. Financial Impact: • Due to its tax-exempt status, $0.00 is currently being generated in annual property tax for this site • Anticipated annual property tax generation for a $5,000,000 commercial market development of this type for 2026 is $85,076.75 with $25,000 being the City portion • For a $6,000,000 project, $102,092.10 is estimated with $30,000 being the City portion • The developer is asking for a one-time $40,000 reduction on fees. • Park Dedication Fee: $112,000 for 32 units at $3,500 per/unit paid once the project is approved. • Currently, the estimated SAC fees are $27,335 • WAC fees are $500 per water hook-up depending on how it is calculated • The commercial building permit fees are expected to be approximately $42,153.47 based on a $5,000,000 estimated construction costs value. However, those permit applications have not yet been submitted so this is only an estimate. • Legal fees are unknown at this time • Planning Consulting fees are unknown at this time; escrows are built into the zoning application