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ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 26, 2012 4 Councilmember Tamble questioned if two people could occupy 300 square feet. He felt this was not enough space for proper living quarters. He understood this to be the case in New York City, but did not understand the reasoning behind allowing this in Arden Hills. Mr. Davidson explained this was within City Code. Councilmember Tamble expressed concern with the proposed redevelopment missing the market with this use. He questioned how the developers would handle the third and fourth floor phasing if the first and second floors were not rented out in a timely manner. Mr. Davidson stated adjustments would have to be made to the model to meet the needs of the market. He explained a great deal of money would be spent on renovating the gathering spaces to draw people to the unique amenities of this location. The proposed facilities would attract young professionals and students. Councilmember Holden stated Northwestern College had trouble getting students into this location. She expressed concern with this location turning into Polynesian Village. Mr. Davidson explained again his projections and stated he was proposing to invest a great deal of money into redesigning the site to meet the needs of the market. He has a long track record of success in the community and noted the proposed project would be the same. He felt the proposed project had exciting potential. Mayor Grant had a great deal of reservation with the proposal and the small size of the units and felt that this was a risky proposal for the City. Councilmember Werner questioned if market research had been conducted on the demand for a 300 square foot studio unit. Mr. Davidson replied that formal market research had not been conducted, but stated the Phase I and Phase 11 would allow for flexibility in the unit sizes. Lisa indicated the rent charged for these units would allow for work-force housing and offered a great facility for those working manufacturing jobs at $10-12 per hour. She did not anticipate this building to become low-income housing because the units would be too small to house large families. Councilmember Tamble asked for the reason the restaurant was not being redeveloped. Mr. Davidson commented the amenities offered through the redevelopment would drive the restaurant redevelopment. However, he anticipated this turning into a third tenant use, such as a coffee shop or day care facility. Mayor Grant questioned if the developer had considered turning all of the units into 600 square foot one-bedroom apartments, versus the 300 square foot studios.