CC MINUTES 10282025 - Laserfiche WebLink

Home Browse Search

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