HomeMy WebLinkAboutCC WS PACKET 09232025CITY OF SAINT ANTHONY VILLAGE
WORKSESSION AGENDA
Tuesday, September 23, 2025 at 5:30PM
Members of the public who wish to attend the meeting may do so in person.
Minutes
Approval Of CC WS Meeting Minutes
CC 09 -09 -2025 WORK SESSION.PDF
Worksession Topics
Ruby Phase 2
Evan Doran, The Doran Group, presenting.
TDG MEMO TO ST. ANTHONY CITY COUNCIL (EJD).PDF
SCENARIO 1BASE CASE - SLV2.PDF
SCENARIO 2RENT INCREASE - SLV 2.PDF
SCENARIO 3REDUCTION OF CITY TAX AND SAC - SLV 2.PDF
SCENARIO 4REDUCTION OF CONSTRUCTION COSTS SLV 2.PDF
SCENARIO 5AMALGAMATION OF IMPROVEMENTS - SLV2.PDF
Future Worksession Dates, Times And Agenda Items
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjournment
If you would like to request special accommodations or alternative formats, please contact the City
Clerk at 612 -782 -3334 or email city@savmn.com . People who are deaf or hard of hearing can
contact us by using 711 Relay.
Our Mission is to promote a high quality of life to those we serve through
outstanding city services.
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CITY OF SAINT ANTHONY VILLAGEWORKSESSION AGENDATuesday, September 23, 2025 at 5:30PMMembers of the public who wish to attend the meeting may do so in person. MinutesApproval Of CC WS Meeting MinutesCC 09 -09 -2025 WORK SESSION.PDFWorksession TopicsRuby Phase 2Evan Doran, The Doran Group, presenting.TDG MEMO TO ST. ANTHONY CITY COUNCIL (EJD).PDFSCENARIO 1BASE CASE - SLV2.PDFSCENARIO 2RENT INCREASE - SLV 2.PDFSCENARIO 3REDUCTION OF CITY TAX AND SAC - SLV 2.PDFSCENARIO 4REDUCTION OF CONSTRUCTION COSTS SLV 2.PDFSCENARIO 5AMALGAMATION OF IMPROVEMENTS - SLV2.PDFFuture Worksession Dates, Times And Agenda ItemsFuture Agenda ItemsFUTURE AGENDA ITEMS.PDF
Adjournment
If you would like to request special accommodations or alternative formats, please contact the City
Clerk at 612 -782 -3334 or email city@savmn.com . People who are deaf or hard of hearing can
contact us by using 711 Relay.
Our Mission is to promote a high quality of life to those we serve through
outstanding city services.
1.A.Documents:2.A.Documents:3.A.Documents:
4.
City of St. Anthony
CITY COUNCIL WORK SESSION
Minutes
SEPTEMBER 9, 2025
Present:
Mayor & Council:
Mayor Wendy Webster, Councilmembers Lona Doolan (Arrived at 5:40 p.m.), Nadia Elnagdy, Jan Jenson,
and Thomas Randle.
Absent: None.
Staff:
City Manager Charlie Yunker, City Attorney Jay Lindgren, and City Planner Stephen Grittman.
Others: None.
Call to Order:
Mayor Webster called the Work Session to order at 5:30 p.m.
1.Approval of CC WS Meeting Minutes.
A.August 26, 2025 City Council Work Session Minutes.
Motion by Councilmember Jenson, seconded by Councilmember Elnagdy, to approve the City Council
Work Session Minutes of August 26, 2025, as presented.
Motion carried 4-0.
2.Work Session Topics.
A.Rental Ordinances.
City Planner Grittman reviewed that the City Council will continue to discuss rental housing. The work
session follows the discussion at the August 12 City Council meeting discussing a 1st reading of proposed
rental housing licensing ordinances, 2025-XX and 2025-XX. The City Attorney will be in attendance to
discuss the current ordinance, existing short-term rentals, and other aspects of rental housing
regulation.
Staff is seeking further direction on the options for licensing of rental housing generally, short-term
rental housing, and single-family rental regulations.
Provided for City Council consideration were Rental Ordinance No. 2025-XX Amending Sections 152 and
154 and Rental Ordinance No. 2025-XX Amending Section 152.
Mayor Webster reminded City Council that if we moved forward with this, the question was raised
whether the City would be open to litigation.
Mr. Lindgren stated that it is a challenge to talk about legal risk. From a risk standpoint, there is already
an ordinance in place banning short-term rentals. By passing this, it would make this ban clearer. If this
September 9, 2025 St. Anthony Council Work Session - 2
ordinance were adopted, the risk would be reduced due to the fact that more clarity is included. He also
thinks, without knowing the facts of what is going on in the City today, that if use is not allowed, it is
prohibited. The current ordinance defines what is a dwelling unit.
Mayor Webster stated that City Manager Yunker has also clarified. Currently, it is not specified that this
is allowed, and we are making it clearer.
Councilmember Doolan arrived at the meeting at 5:40 p.m.
Councilmember Randle asked if this is currently covered by an ordinance. Mr. Yunker stated that it is not
expressly written as something that is allowed in the R-1 District. This is added language as a
clarification. Mr. Lindgren reviewed the definition of a motel/hotel. Councilmember Randle asked what
would happen to those short-term rentals that are currently occurring in the City. Mayor Webster stated
Council would need to decide how to handle those. Some may have never applied for a rental license.
Mayor Webster asked Mr. Lindgren if, if this ordinance is passed, Council could look at an effective date
for properties that currently have a rental license and a tighter termination date for those properties
that do not have a rental license. Mr. Lindgren stated that when someone has a land use that is not
currently allowed, the law allows that land use to be a valid non-conforming land use. It is ok to have a
land use that is consistent with the current zoning code if that land use was consistent with the code
when it was created. A delayed effective date could be implemented. That would be having an
extraordinary right. A policy decision would be made to allow them to exist for a period of time.
Councilmember Jenson asked if we could find out if there are uses that are acting as an Airbnb, but they
are not licensed. Do we know the full scope of the number? Mr. Grittman stated the City knows of some
of them that have been licensed to operate short-term rentals. We do not know if we are aware of all.
Code compliance staff have been out there observing what they normally observe. They have looked at
websites that manage these units. He assumes the Staff does not know all of them. Councilmember
Jenson asked if there was an approximate number. City Staff is aware of 7 properties. Staff has not
researched how many of the 60 rental licenses in the City are being rented short-term.
Councilmember Doolan asked about creating extraordinary rights. If Council goes forward with the ban,
is the City opening itself up to possible litigation by allowing some but no more beyond that? Mr.
Lindgren stated that any action is subject to litigation. If the Council chooses for some to continue, that
right is not being taken away from anyone else. Mr. Lindgren stated that if those operating with a
license are treated one way and those operating without a license are treated another way, that may
cause grounds for litigation, as they are being treated differently. Councilmember Doolan asked if we
allow the ones that are licensed to exist, can we put in a structure to accommodate those that are not
licensed? Mr. Lindgren, if we created a time period for the 7 to continue, would different procedures
need to be developed? Generally, our residential rental license doesn’t ask the question about whether
it is a short-term rental or not. Municipal mistake is not an excuse. More procedures would not need to
be put into place. The rental license application may need to be revised.
Councilmember Elnagdy asked if we were to allow the 7 properties that exist and are adjacent, and
require additional monitoring, the additional cost would be incurred from the additional monitoring and
would cost the property owner more. Mr. Lindgren stated that the licensing should match the cost of
doing something. A different fee structure could be adopted.
Councilmember Jenson asked if we implement this ordinance as is, would we allow a grace period to
become compliant, allow continuation for a period of time, and allow the obligations they currently
September 9, 2025 St. Anthony Council Work Session - 3
have. Councilmember Doolan added that that is what she was trying to say. Councilmember Jenson
asked if that would be long-term or forever, or a timeframe from the day the ordinance was passed.
Councilmember Doolan stated there would be two options. Councilmember Jenson stated that the
person renting short-term can rent long-term instead. Mr. Grittman stated that the ordinance says that
short-term rentals should cease, and some enforcement action would be taken to ensure that they do
so. Their options would be to convert those properties to long-term rentals or sell the properties.
Councilmember Doolan stated that St. Anthony is not the only City looking at this, and is staff aware of
any litigation taking place? Mr. Lindgren stated he is aware of two pieces of litigation pending, which are
currently scheduled for motions, where the Cities are seeking a motion for summary judgment. They are
scheduled for December 2025. In those cities, they do not have an ordinance in place to define what a
dwelling unit is. The City has the power to protect the community. The City is within its rights to regulate
it in this manner.
Mayor Webster stated this is not allowed in an R-1 district and asked if this excludes hotels. Mr.
Lindgren stated in R-1 dwelling units are allowed, and they must be a place of residence. Dwelling units
do not include motels. A motel is a place for overnight accommodations and transient guests. A short-
term rental is like a motel and is not allowed in the R-1 district. Mayor Webster stated this ordinance
would make that clearer.
Mayor Webster asked the Councilmembers for their thoughts on the proposed ordinance.
Councilmember Elnagdy stated her concerns included making rules that would remove rights from
property owners. There are a certain number of licensed properties, and she asked Mr. Grittman of the
7 found on Airbnb how many are licensed. Mr. Grittman stated he does not know for sure. Mr. Yunker
stated that it is not many. Councilmember Elnagdy stated that if our concern is making sure that
investors don’t come in and buy a bunch of properties. There should be carve-outs for well-maintained
properties. The more we carve out individuals, other individuals would say what about me. The City
would have a good argument there. It is reasonable for licensed residents to follow the rules and
maintain the property well. Do we want to handle those that exist and do what we want them to do
differently? Banning going forward would be fine, but why get rid of those doing what we want them to
do?
Councilmember Randle asked what the Council is trying to solve. Are we trying to solve an issue that
doesn’t exist, or does it exist? He is not clear on what is being done. He could see moving forward if we
want to cap the number of short-term licenses. Those without licenses need to go. But for those who
are licensed and doing things the right way, why would we want to interfere with that?
Councilmember Doolan stated that it is a good question. We don’t want investment companies to come
in and purchase properties. One of the main concerns is to continue to let this grow, as it is taking those
properties out of those available for people to purchase and live in St. Anthony. She does not know how
to handle those who are unaware of the restrictions and let them continue to operate.
Councilmember Jenson stated he would favor this being implemented and creating a grace period to
allow people a reasonable time to adjust to a long-term rental. Those operating without a license should
not be rewarded with a grace period. If ownership of the property changes, the license would be
revoked. People want to live in St. Anthony.
Councilmember Randle asked what if people can’t afford to own, and renting is the only option they
have.
September 9, 2025 St. Anthony Council Work Session - 4
Mayor Webster stated that whether you own or rent a home, a residence is provided for 365 days. This
allows an option. She is in favor of moving forward with the ordinance, but is also comfortable if we had
timelines for ending them and allowing more time for properties that have a rental license. She is
concerned with the properties that did not obtain a rental license. She is not in favor of a grace period
for those properties.
Councilmember Elnagdy stated she does not have any strong feelings against us doing as we did with
the tobacco licenses. We do not need to have short-term licenses going forward. She would like to know
how many properties are operating on a short-term basis and are licensed. We need to figure out the
exact number and how they are being utilized. Then carve out an exception if Council sees a need for
one. More discussion about the licensed rental properties that operate on a short-term basis. If you
apply for a rental license, it does not make a distinction between short and long-term rentals. Mr.
Yunker stated there is an annual licensing process. Enforcement can start at the next cycle. The City will
know through that process who is renting short-term vs. long-term.
Councilmember Doolan stated that if we do allow specific ones to continue, what happens when we hit
the cap for long-term rentals? Mr. Lindgren stated the safest thing would be to have a cap and have
exceptions during the grace period.
Councilmember Elnagdy noted that currently, a license does not pass to a new property owner.
Mr. Yunker stated that the ordinance, with the cap in place, would allow staff to start to educate those
who are operating without a license.
Mayor Webster asked the Councilmembers about whether to have a different grace period for licensed
rentals operating short-term rentals. Councilmember Randle stated he believes that if they are doing
things the right way with licenses, he has difficulty prohibiting it. Councilmember Jenson stated he is in
favor of passing the ordinance, including some verbiage about the grace period. Mr. Yunker stated that
it does not need to be in the ordinance, but would be staff direction. Councilmember Elnagdy stated she
would be in favor of a carve-out for current licenses operating on a short-term basis. She wants to see
some license holders who are doing as the City wants, to be grandfathered in. Only Councilmembers
Elnagdy and Doolan were in favor of a carve-out. Councilmember Randle stated he would be interested
in a carve-out. Mayor Webster asked about the impact on neighbors of the transient use of a property.
Councilmember Elnagdy stated she would be in favor of that. Councilmember Jenson stated he wants to
get people to buy or rent long-term homes. Mr. Lindgren reviewed Mayor Webster’s suggestion, and
everyone who was licensed now could continue through the end of their license period, but if that
licensed property was adjacent to the primary residence of the owner, it could continue indefinitely on
an annual licensure basis. Mr. Lindgren stated that two classes should not be developed. Mr. Lindgren
stated that it would be defensible. Mayor Webster stated that if there was a grandfather clause for a
current property, what would happen if someone wanted to buy the property next door and do this?
Mr. Lindgren stated that none of these should have happened, and there needs to be a fair way to solve
the situation. Councilmember Elnagdy stated she is in favor of a carve-out.
The license application would be modified to include short-term or long-term rentals. Mr. Yunker stated
that after a license is granted, the Staff does not know the terms of the rentals. Councilmember Jenson
asked if the three who came into the Council meetings were licensed. Mr. Grittman stated that the only
ones who would qualify for a carve-out are the property owners who live adjacent to the rental
property. Mayor Webster cited a possible situation where an unlicensed property owner could be
September 9, 2025 St. Anthony Council Work Session - 5
carved out. Mr. Grittman posed the question of whether a St. Anthony resident was operating a short-
term rental on a property that was not adjacent to them and was not licensed, but who came in next
week for a license. The Council agreed that it should not be granted.
Mayor Webster stated her only concern is grandfathering in those renting adjacent properties, and that
it may create problems in the future. Councilmember Elnagdy stated her consideration is for residents
who are operating responsibly.
Councilmember Doolan referred to a resident who moved out of the City temporarily and is renting their
home until they move back to their home. This carve-out would not apply to that property after the
current license expires.
Mayor Webster summarized that if the Council moves ahead with the ordinance language proposed, for
properties that are operating as a short-term rental but do not have a license, when this ordinance is
passed, they will cease to be able to operate and could transition to a licensed long-term rental or
choose to sell their property. Those properties that do have a license, operating as a short-term rental,
and living adjacent to the rental property, can do so until their current license expires, and if it is
renewed, it will be grandfathered in to continue operating. Councilmember Randle would be in favor of
this. Councilmember Doolan stated she would be in favor if legal counsel states the City would not be
risking litigation. Councilmember Jenson agreed. Councilmember Elnagdy agreed.
Mr. Lindgren stated that those are reasonable public policy decisions that are defensible under the law.
Future Agenda Items:
The next Work Session Meeting will be held on September 23, 2025.
Adjournment:
The meeting adjourned at 6:50 p.m.
6423 City W Pkwy, Eden Prairie, MN 55344 TheDoranGroupUS.com
MEMORANDUM
To: St. Anthony City Council
From: Evan Doran; The Doran Group
Date: September 17, 2025
Subject: Request for Extension on Entitlements – Ruby Apartments Phase II
Dear Council Members,
We are writing to respectfully request a two-year extension of our entitlements to develop the
second phase of the Ruby Apartments. While our team remains committed to advancing this
project, we are currently facing continued economic challenges that have significantly impacted
the second phase’s financial feasibility.
In order to raise debt and equity for a multifamily development project in the current economic
environment, a project must have a minimum 7% return on cost. Return on Cost is defined as the
Net Operating Income divided by the Total Development Costs.
To illustrate these challenges, we have prepared five development scenarios, enclosed for your
review:
Scenario 1: Base Case
o Construction cost estimates based on Spring 2025 estimates.
o Taxes are modeled based on current assessments on Ruby Phase I.
o Rents are based on Phase I market performance.
- Findings: 5.76% Return on Cost
Scenario 2: Rent Adjustment Only
o We assumed a 10% increase in rents beyond our current rental rate.
- Findings: 6.53% Return on Cost
Scenario 3: Tax and Fee Adjustment Only
o Assumes elimination of city-assessed taxes and city assessed SAC fees.
- Findings: 5.91% Return on Cost
Scenario 4: Cost Reduction Only
o Assumes a $3 million reduction in construction costs.
September 17, 2025
Page 2
- Findings: 6.04% Return on Cost
Scenario 5: Combined Adjustments
o Incorporates all three modifications: elimination of city-assessed taxes and SAC
fees, a $3 million construction cost reduction, and increased rents.
- Findings: 7.02% Return on Cost
Findings:
Our analysis demonstrates that under the base case and individual adjustment scenarios, the
project remains financially infeasible. Only under the combined optimistic adjustment scenario
(Scenario 5) do the economics align sufficiently to allow Phase II to potentially move forward.
Request:
Given these circumstances, we respectfully request an extension of our entitlements to allow
time for market conditions to stabilize and for us to pursue solutions that can make Ruby
Apartments Phase II feasible. We are NOT asking for the Council or staff to consider making
any tax, cost, or rent related actions related to the project at this time.
Our team remains committed to delivering high-quality housing that meets the needs of the St.
Anthony community, and we ask for your support in ensuring this important project can be
realized.
Thank you for your consideration.
Sincerely,
Evan Doran
President and CEO
The Doran Group
Investment Summary
Ruby Apartments Phase II
St. Anthony Village, MN
Current Unit Economics Projected Returns
Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$6,950,265
Studio 24 620 $2.41 $1,495 $430,560 Unlevered Internal Rate of Return 4.8%
1BR/1BA 147 748 $2.32 $1,734 $3,058,776 Levered Internal Rate of Return 9.4%
1BR/1BA + Den 8 987 $2.00 $1,977 $189,792 Levered Equity Multiple 1.4 x
2BR/2BA 59 1,297 $1.86 $2,415 $1,709,820 Return on Cost - Trended Rent 5.76%
3BR/2BA 4 1,689 $1.89 $3,184 $152,832 Return on Cost Upon Exit (FWD 12 Mo.)6.11%
TOTAL 242 893 $2.14 $1,908 $5,541,780
Rent @ Stabilization 2.00%$2.27 $2,025 $5,880,981
Per Yr Growth to Stab.
Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
Potential Rental Income $5,880,981 Uses of Funds Per Unit Cost % of TPC Amount
Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 8%$5,485,246
Storage Income # of Units 62 $75 $55,800 Hard Costs $207,890 74%$50,309,384
Utility Income $70 $203,280 Hard Cost Contingency $4,060 1%$982,446
Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
Potential Gross Income $27,214 $6,585,741 Fees $9,100 3%$2,202,105
Vacancy & Credit Loss 5.00%($1,361)($329,287)Other Construction Cost $10,878 4%$2,632,500
Effective Gross Income $25,853 $6,256,454 Construction Loan Interest Reserve $9,298 3%$2,250,000
Real Estate Taxes $5,041 $1,219,825 Developer Fee (Deferred)$10,331 4%$2,500,000
Insurance $550 $133,100 Total Project Cost $280,775 100%$67,947,473
Management Fee 3.00%$776 $187,694
Operating Expenses $3,321 $803,588
Total Expenses $9,687 $2,344,207 Sources of Funds % Amount
Net Operating Income (NOI)$16,166 $3,912,248 Construction Loan 64%$43,150,000
Operating Margin 62.5%Doran Contributed Land Value 8% $5,485,246
Doran Contributed Developer Fee 4%$2,500,000
Annual Income Growth Rate 3.00%Doran Cash Equity 6%$4,413,491
Annual Expense Growth Rate 3.00%Investment Partner Equity 18%$12,398,737
Total Sources 100%$67,947,473
Base Case
Spring 2025 Construction Cost Estimate
Rents Matching Phase I Current Rents
Taxes Matching Phase I Assessment
Investment Summary
Ruby Apartments Phase II
St. Anthony Village, MN
Current Unit Economics Projected Returns
Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$17,020,277
Studio 24 620 $2.66 $1,648 $474,624 Unlevered Internal Rate of Return 8.2%
1BR/1BA 147 748 $2.55 $1,911 $3,371,004 Levered Internal Rate of Return 18.8%
1BR/1BA + Den 8 987 $2.21 $2,179 $209,184 Levered Equity Multiple 1.8 x
2BR/2BA 59 1,297 $2.02 $2,622 $1,856,376 Return on Cost - Trended Rent 6.53%
3BR/2BA 4 1,689 $2.08 $3,510 $168,480 Return on Cost Upon Exit (FWD 12 Mo.)6.93%
TOTAL 242 893 $2.35 $2,094 $6,079,668
Rent @ Stabilization 2.00%$2.49 $2,222 $6,451,792
Per Yr Growth to Stab.
Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
Potential Rental Income $6,451,792 Uses of Funds Per Unit Cost % of TPC Amount
Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 8%$5,485,246
Storage Income # of Units 62 $75 $55,800 Hard Costs $207,890 74%$50,309,384
Utility Income $70 $203,280 Hard Cost Contingency $4,060 1%$982,446
Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
Potential Gross Income $29,573 $7,156,552 Fees $9,100 3%$2,202,105
Vacancy & Credit Loss 5.00%($1,479)($357,828)Other Construction Cost $10,878 4%$2,632,500
Effective Gross Income $28,094 $6,798,725 Construction Loan Interest Reserve $9,298 3%$2,250,000
Real Estate Taxes $5,041 $1,219,825 Developer Fee (Deferred)$10,331 4%$2,500,000
Insurance $550 $133,100 Total Project Cost $280,775 100%$67,947,473
Management Fee 3.00%$843 $203,962
Operating Expenses $3,321 $803,588
Total Expenses $9,754 $2,360,475 Sources of Funds % Amount
Net Operating Income (NOI)$18,340 $4,438,250 Construction Loan 64%$43,150,000
Operating Margin 65.3%Doran Contributed Land Value 8% $5,485,246
Doran Contributed Developer Fee 4%$2,500,000
Annual Income Growth Rate 3.00%Doran Cash Equity 6%$4,413,491
Annual Expense Growth Rate 3.00%Investment Partner Equity 18%$12,398,737
Total Sources 100%$67,947,473
Summary of Assupmtions
10% Increase in Rents Over Current Phase I Average Rents
Investment Summary
Ruby Apartments Phase II
St. Anthony Village, MN Elimination of City Assesssed SAC Charges
Current Unit Economics Projected Returns
Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$8,874,783
Studio 24 620 $2.41 $1,495 $430,560 Unlevered Internal Rate of Return 5.5%
1BR/1BA 147 748 $2.32 $1,734 $3,058,776 Levered Internal Rate of Return 11.5%
1BR/1BA + Den 8 987 $2.00 $1,977 $189,792 Levered Equity Multiple 1.4 x
2BR/2BA 59 1,297 $1.86 $2,415 $1,709,820 Return on Cost - Trended Rent 5.91%
3BR/2BA 4 1,689 $1.89 $3,184 $152,832 Return on Cost Upon Exit (FWD 12 Mo.)6.27%
TOTAL 242 893 $2.14 $1,908 $5,541,780
Rent @ Stabilization 2.00%$2.27 $2,025 $5,880,981
Per Yr Growth to Stab.
Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
Potential Rental Income $5,880,981 Uses of Funds Per Unit Cost % of TPC Amount
Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 8%$5,485,246
Storage Income # of Units 62 $75 $55,800 Hard Costs $207,890 74%$50,309,384
Utility Income $70 $203,280 Hard Cost Contingency $4,060 1%$982,446
Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
Potential Gross Income $27,214 $6,585,741 Fees $7,400 3%$1,790,705
Vacancy & Credit Loss 5.00%($1,361)($329,287)Other Construction Cost $10,878 4%$2,632,500
Effective Gross Income $25,853 $6,256,454 Construction Loan Interest Reserve $9,298 3%$2,250,000
Real Estate Taxes $4,714 $1,140,788 Developer Fee (Deferred)$10,331 4%$2,500,000
Insurance $550 $133,100 Total Project Cost $279,075 100%$67,536,073
Management Fee 3.00%$776 $187,694
Operating Expenses $3,321 $803,588
Total Expenses $9,360 $2,265,170 Sources of Funds % Amount
Net Operating Income (NOI)$16,493 $3,991,285 Construction Loan 64%$43,150,000
Operating Margin 63.8%Doran Contributed Land Value 8% $5,485,246
Doran Contributed Developer Fee 4%$2,500,000
Annual Income Growth Rate 3.00%Doran Cash Equity 6%$4,207,791
Annual Expense Growth Rate 3.00%Investment Partner Equity 18%$12,193,037
Total Sources 100%$67,536,073
Elimination of City Assessed Taxes
Summary of Assumptions
Investment Summary
Ruby Apartments Phase II
St. Anthony Village, MN
Current Unit Economics Projected Returns
Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$10,163,265
Studio 24 620 $2.41 $1,495 $430,560 Unlevered Internal Rate of Return 6.1%
1BR/1BA 147 748 $2.32 $1,734 $3,058,776 Levered Internal Rate of Return 13.5%
1BR/1BA + Den 8 987 $2.00 $1,977 $189,792 Levered Equity Multiple 1.5 x
2BR/2BA 59 1,297 $1.86 $2,415 $1,709,820 Return on Cost - Trended Rent 6.04%
3BR/2BA 4 1,689 $1.89 $3,184 $152,832 Return on Cost Upon Exit (FWD 12 Mo.)6.41%
TOTAL 242 893 $2.14 $1,908 $5,541,780
Rent @ Stabilization 2.00%$2.27 $2,025 $5,880,981
Per Yr Growth to Stab.
Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
Potential Rental Income $5,880,981 Uses of Funds Per Unit Cost % of TPC Amount
Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 8%$5,485,246
Storage Income # of Units 62 $75 $55,800 Hard Costs $194,873 73%$47,159,384
Utility Income $70 $203,280 Hard Cost Contingency $3,799 1%$919,446
Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
Potential Gross Income $27,214 $6,585,741 Fees $9,100 3%$2,202,105
Vacancy & Credit Loss 5.00%($1,361)($329,287)Other Construction Cost $10,878 4%$2,632,500
Effective Gross Income $25,853 $6,256,454 Construction Loan Interest Reserve $9,298 3%$2,250,000
Real Estate Taxes $5,041 $1,219,825 Developer Fee (Deferred)$10,331 4%$2,500,000
Insurance $550 $133,100 Total Project Cost $267,498 100%$64,734,473
Management Fee 3.00%$776 $187,694
Operating Expenses $3,321 $803,588
Total Expenses $9,687 $2,344,207 Sources of Funds % Amount
Net Operating Income (NOI)$16,166 $3,912,248 Construction Loan 67%$43,150,000
Operating Margin 62.5%Doran Contributed Land Value 8% $5,485,246
Doran Contributed Developer Fee 4%$2,500,000
Annual Income Growth Rate 3.00%Doran Cash Equity 4%$2,806,991
Annual Expense Growth Rate 3.00%Investment Partner Equity 17%$10,792,237
Total Sources 100%$64,734,473
Summary of Assupmtions
$3 Million Dollar Decrease in Construction Costs
Investment Summary
Ruby Apartments Phase II
St. Anthony Village, MN
Total Amalgamation of Improvements
Current Unit Economics Projected Returns
Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$22,157,795
Studio 24 620 $2.66 $1,648 $474,624 Unlevered Internal Rate of Return 10.2%
1BR/1BA 147 748 $2.55 $1,911 $3,371,004 Levered Internal Rate of Return 24.9%
1BR/1BA + Den 8 987 $2.21 $2,179 $209,184 Levered Equity Multiple 2.1 x
2BR/2BA 59 1,297 $2.02 $2,622 $1,856,376 Return on Cost - Trended Rent 7.02%
3BR/2BA 4 1,689 $2.08 $3,510 $168,480 Return on Cost Upon Exit (FWD 12 Mo.)7.45%
TOTAL 242 893 $2.35 $2,094 $6,079,668
Rent @ Stabilization 2.00%$2.49 $2,222 $6,451,792
Per Yr Growth to Stab.
Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
Potential Rental Income $6,451,792 Uses of Funds Per Unit Cost % of TPC Amount
Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 9%$5,485,246
Storage Income # of Units 62 $75 $55,800 Hard Costs $194,873 73%$47,159,384
Utility Income $70 $203,280 Hard Cost Contingency $3,799 1%$919,446
Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
Potential Gross Income $29,573 $7,156,552 Fees $7,400 3%$1,790,705
Vacancy & Credit Loss 5.00%($1,479)($357,828)Other Construction Cost $10,878 4%$2,632,500
Effective Gross Income $28,094 $6,798,725 Construction Loan Interest Reserve $9,298 3%$2,250,000
Real Estate Taxes $4,714 $1,140,788 Developer Fee (Deferred)$10,331 4%$2,500,000
Insurance $550 $133,100 Total Project Cost $265,798 100%$64,323,073
Management Fee 3.00%$843 $203,962
Operating Expenses $3,321 $803,588
Total Expenses $9,427 $2,281,438 Sources of Funds % Amount
Net Operating Income (NOI)$18,666 $4,517,287 Construction Loan 67%$43,150,000
Operating Margin 66.4%Doran Contributed Land Value 9% $5,485,246
Doran Contributed Developer Fee 4%$2,500,000
Annual Income Growth Rate 3.00%Doran Cash Equity 4%$2,601,291
Annual Expense Growth Rate 3.00%Investment Partner Equity 16%$10,586,537
Total Sources 100%$64,323,073
Summary of Assupmtions
$3 Million Dollar Decrease in Construction Costs
Elimination of City Assessed Taxes and SAC Fees
10% Increase in Rent Over Current Phase I Rents
FUTURE COUNCIL AGENDA ITEMS
Date Type
Staff Present /
Contributing
Packet Due
Date
2025
October 14 Work
Session 2026 Long Term Capital Budget Plans
City Council
City Manager
Finance Director
October 7
October 14 Regular
Preliminary Certification of Delinquent Waste Hauler Accounts-
Consent Agenda
Preliminary Certification of Delinquent Utility Accounts-Consent
Agenda
Planning Commission items from September
City Council
City Manager October 7
October 28 Work
Session 2026 Utility Rates and Budgets
City Council
City Manager
Finance Director
October 21
October 28 Regular
Quarterly Donations & Grants
Quarterly Goals Update
Spirit of St. Anthony Award
City Council
City Manager
Finance Director
October 21
November 10 Work
Session Roles and Expectations for City Commissions Discussion City Council
City Manager November 3
November 10 Regular
Planning Commission items from October
1st Reading Water, Sewer, & Stormwater-PUBLIC HEARING
Presentation on Water and Sewer Rates and Fee Schedule
Canvass election results
Approval of CIP
City Council
City Manager
Finance Director
November 3
November 17 Work
Session Commission Interviews City Council
City Manager November 10
November 25 Work
Session Active Transportation Plan Update City Council
City Manager November 18
November 25 Regular
Fire Prevention Poster Winners
2nd Reading and Adoption Water, Sewer, & Stormwater
City Council
City Manager November 18
December 9 Work
Session Goal Setting Preparation City Council
City Manager December 2
FUTURE COUNCIL AGENDA ITEMS
Date Type
Staff Present /
Contributing
Packet Due
Date
December 9 Regular
Planning Commission items from November
Appoint Parks and Planning Commissioners and Chair/Vice Chairs
Setting Salary of City Manager
Authorizing Transfers & Closing of Specified Funds
Setting the 2025 City & HRA Budgets and Final Property Tax Levy -
PUBLIC HEARING
2026 Fee Schedule
MS4
Quarterly Goals update
Final reading and adoption of water, sewer, & stormwater
City Council
City Manager
Finance Director December 2
December 23 Regular (Typically Cancelled)
2026
January 13 Work
Session
City Council
City Manager
Code Official
ANSR
January 6
January 13 Regular
Planning Commission items from December
Housekeeping Resolutions
Resolution for the Street Improvement Bond Reimbursement
Quarterly Donations & Grants
NYFS Agreement
Outside Orgs-Council
City Council
City Manager
NYFS
January 6
January 27 Work
Session 2026 Goals Draft City Council
City Manager January 20
January 27 Regular Public Works Snow Plowing Operations presentation
City Council
City Manager
PW Director
January 20
February 10 Work
Session Miscellaneous Ordinance Revisions City Council
City Manager February 3
February 10 Regular
Planning Commission items from January
Public Hearing-2027 Budget Calendar and Process
2026 Planning Commission Work Plan- (motion only)
2026 Parks and Environmental Commission Work Plan- (motion only)
Adoption of Strategic Plan
City Council
City Manager
Finance Director
February 3
February 17 Work
Session Miscellaneous Ordinance Revisions City Council
City Manager February 10
February 17 Regular
City Council
City Manager
Finance Director
February 10
March 10 Work
Session
City Council
City Manager March 3
March 10 Regular
Planning Commission Items from February
Public Works Annual Report
NineNorth Presentation
City Council
City Manager
PW Director
March 3
March 24 Work
Session
City Council
City Manager March 17
March 24 Regular
Police Annual Report
Call for Public Hearing on Road Improvements and Assessments
Order the Preparation of Assessments
City Council
City Manager
Police Dept
WSB
March 17
FUTURE COUNCIL AGENDA ITEMS
Date Type
Staff Present /
Contributing
Packet Due
Date
April 14 Work
Session
City Council
City Manager April 7
April 14 Regular
Planning Commission Items from March
Quarterly Donations & Grants
Fire Annual Report
Arbor Day Proclamation
Earth Day Proclamation
Quarterly Goals Update
City Council
City Manager
Fire Dept April 7
April 28 Work
Session
City Council
City Manager April 21
April 28 Regular
Finance Annual Report
Insurance Renewal & Tort Limits- Consent
Road Improvements and Assessments- PUBLIC HEARING
City Council
City Manager
Finance Director
WSB
April 21
May 12 Work
Session
City Council
City Manager May 5
May 12 Regular
Planning Commission items from April
Villager of the Year and Business of the Year
City Council
City Manager May 5
May 26 Work
Session
City Council
City Manager May 19
May 26 Regular
City Council
City Manager May 19
June 9 Work
Session
City Council
City Manager June 2
June 9 Regular
Planning Commission Items from May
Authorize preparation of feasibility study for 2027 street project
City Council
City Manager June 2
June 23 Work
Session
City Council
City Manager June 16
June 23 Regular
City Council
City Manager June 16
July 7 Work
Session 2027 Initial Property Tax Levy Scenarios
City Council
City Manager
Finance Director
June 30
July 7 Regular
Planning Commission items from June
Quarterly Donations & Grants
Audit Report
Quarterly Goals Update
City Council
City Manager
Finance Director
June 30
July 21 Work
Session
City Council
City Manager July 14
FUTURE COUNCIL AGENDA ITEMS
Date Type
Staff Present /
Contributing
Packet Due
Date
July 21 Regular
Liquor Operations Mid Year Report
VillageFest Presentation
Night to Unite Presentation
Night to Unite Proclamation
City Council
City Manager
Liquor Op Mgr
Police Chief
July 14
August 11 Work
Session Discuss Updated Levy Scenarios/Detailed General Fund Budget
City Council
City Manager
Finance Director
August 4
August 11
Regular Planning Commission items from July
Approve 2027 Feasibility Study and Order Plans and Specs
City Council
City Manager August 4
August 25 Work
Session
City Council
City Manager
City Planner
August 18
August 25 Regular 2027 Proposed Budget & Levy Presentation
City Council
City Manager
Finance Director
August 18
September 8 Work
Session
City Council
City Manager
City Planner
September 1
September 8 Regular
Planning Commission items from August
2027 Preliminary Operating Budget and Debt Levy-PUBLIC HEARING
Students in Leadership-Consent
City Council
City Manager
Finance Director
Engineer
September 1
September 22 Work
Session
City Council
City Manager September 15
September 22 Regular
Spirit of St. Anthony Award
Fire Prevention Presentation
Planning Commission items from August
City Council
City Manager
Fire Dept
September 15
October 13 Work
Session Fee Schedule Discussion City Council
City Manager October 6
October 13 Regular
City Council
City Manager October 6
October 27 Work
Session
City Council
City Manager October 20
October 27 Regular
Quarterly Donations & Grants
Quarterly Goals Update
City Council
City Manager October 20
November 10 Work
Session Commission Interviews City Council
City Manager November 3
November 10 Regular
Score Grant Funding Application Approval
Canvass Election Results
City Council
City Manager
Recycling Coord.
City Clerk
November 3
November 24 Work
Session
City Council
City Manager November 17
November 24 Regular
Fire Poster Contest Winners
Approval Plans & Specifications & Order Advertisement for Bids for
the upcoming Street Project
Fee Schedule Review
City Council
City Manager
Fire Chief
City Engineer
November 17