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City Council Regular Meeting Minutes October 28, 2025 Page 3 1 Mr. Evan Doran appeared before the Council to answer any questions. He is also asking for 2 approval of a subordination agreement, which is part of the packet. They went through 3 refinancing for Phase I. 4 5 Councilmember Jenson asked if interest rates were to drop significantly in two years, would this 6 Phase II project start earlier? Mr. Doran stated there are three triggers, including interest rates, 7 construction costs, and rent. 8 9 Councilmember Randle asked, since construction has not stopped, why is this property so 10 different from other construction sites? Mr. Doran stated that there has been a rapid decrease in 11 new projects across the Twin Cities Metro. Some projects moving forward are affordable 12 housing, which has a different funding source. They are not unique, but they fully believe in this 13 project and the community. 14 15 Councilmember Doolan noted there are a number of good things with this project, but it is the 16 third request for extension. She asked what would be different in three years. She wonders if this 17 is still the right development for this spot. She wonders if there should be a conversation as to 18 what would be a better return. She does not understand what a deferral is going to give St. 19 Anthony. She has reservations about such a long extension for something she is not sure what 20 will change to make it more viable. Mr. Doran stated they are not suggesting or asking for any 21 TIF or other financial assistance. They are trying to supply to meet the demand, so there are no 22 unnecessary rent increases. There is a diverse population that lives in their buildings. They are 23 trying to do their part to address housing in the City. 24 25 Councilmember Elnagdy stated that it only happens if an apartment is built. There is no end in 26 sight to the economic conditions. Mr. Doran stated that there have been changes in the market 27 and swings in construction costs. The future rent growth potential and construction costs coming 28 down will help. 29 30 Mayor Webster stated she appreciates Mr. Doran’s time. The request tonight is the agreement 31 made years ago to build The Ruby, which would provide 500 more units of housing in the City. 32 They are now asking for a delay in Phase II. Mr. Doran stated that the three indicators are the 33 ten-year treasury rate, the Morton Construction Indicator, and the Yardy Matrix, which could be 34 researched for further information. 35 36 Councilmember Doolan stated she still has questions about when this is finished and whether the 37 community's needs are met. She asked Mr. Doran to consider whether this is still the right 38 solution. She would expect that Mr. Doran will collaborate with the City’s goals. The state of the 39 current site is not bringing any value to the City currently. Even green space would add value for 40 the next two years. Mr. Doran stated he would consider that. Councilmember Doolan stated she 41 would not feel good making a commitment without consideration for improving the site. She 42 asked if it would be visually improved, as there still is a blighted site. Mr. Doran stated that they 43 can address the visual concerns. He is reluctant to commit to a large project as they will be 44 starting construction. Mr. Yunker stated that the Staff can work this out with Doran. 45