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Regular City Council Meeting AND Board of Adjustments and Appeals Monday,July 23,2012 Page 51 13. Business Items—Presentations/Discussions a. Discuss Redevelopment of the Hagen Property at 2785 Fairview Avenue Community Development Director Patrick Trudgeon provided a brief overview of this current concept plan for market-rate apartments for redevelopment of the Hagen Property at 2785 Fairview Avenue as detailed in the RCA dated July 23, 2012. Mr. Trudgeon introduced a representative of the property owner to speak to the specifics of this concept. Cary Osborn, CEO of AHMC Asset Management headquartered in Eau Claire,WI, and representing the Hagen Property owner Mr. Osborn reviewed some of the specifics of the proposal, with the goal for re- development of the site in three (3) phases, and proposed total for 215 market- rate rental apartments, and a 4,500 square foot amenity building. Mr. Osborn noted that it was the intent of phasing the project to capture the current market. Mr. Osborn noted that the development was intended to provide for high quali- ty, long-lasting building materials, walkable areas and access to mass transit, in- corporate innovative design and architectural detail and storm water manage- ment techniques, along with interior amenities that included full-time, on-site staffing, and underground heated parking to eliminate as much surface parking as possible. Mr. Osborn reviewed portions of a Maxfield Research Group study commis- sioned by their firm supporting this proposal. Mr. Osborn expressed excitement in the results from the market study area (Roseville, Arden Hills, Falcon Heights, Lauderdale, Saint Anthony Village, Shoreview) with indications that people working in this area remained unable to find appealing residential rent- als, with a current 2.6% vacancy rate, indicating ongoing demand for additional units. Mr. Osborn noted that rental rates in Roseville have remained on the low end, basically due to the age of current buildings and older properties, the most recent built twenty-three (23) years ago (Lexington Apartments). Mr. Osborn noted that there wasn't much developable land in the community, making infill development the only remaining option. Mr. Osborn expressed confidence that this site could capture 10% of the market, anticipating that the most likely age group would be between 18-45 years old. Mr. Osborn noted that the goal prior to proceeding would be for 20%of the units to be pre-leased. Mr. Osborn sought the City Council's feedback and direction as to whether they should proceed. Mr. Trudgeon noted that, part of this concept, included acknowledgement of a gap in funding for the project, and a potential for tax increment financing (TIF) funding by the developer. Mr. Trudgeon expressed confidence that the project met the "but for"test; however, he asked the Council upfront if they were inter-