by Tammy Sakry
Staff Writer
It could take longer for Ramsey to see two of its COR developments come in.
The developers of the 230-unit luxury apartments and townhouse complex The Residence has asked the Ramsey Housing and Redevelopment Authority for an extension to their late April closing date to purchase 3.03 acres of land west of the existing municipal parking ramp in the COR.
Developers for the luxury apartment complex, The Residence, and the Suite Living, 84-unit assisted living and memory care facility, have asked for later closing dates on the land they are purchasing in the COR west of the existing parking ramp.
Both extensions are very normal, said Darren Lazan.
The Flahery & Collins as well as Toti Development are still working to square their financing, he said.
“This is a tough market to finance deals in,” he said.
The Ramsey Housing and Redevelopment Authority (HRA) will consider the extension requests at its April 12 meeting.
The Residence
Although it was scheduled to close on its 3.03 acres of land by the end of April, Flaherty & Collins has requested a 30 to 45 day extension.
The Indianapolis company is planning to build a 221-unit luxury apartment complex with nine two-story rental townhomes.
The total project cost is estimated around $28 million.
Flaherty & Collins is purchasing the land for $250,000.
The business is encountering the same problems as the city is marketing the project, Lazan.
There is still skepticism from lenders about the project and Flaherty & Collins and the city are fighting to get past the stigma of the previous Ramsey Town Center project, he said.
“It’s a challenge getting everyone to understand the unique nature of the project,” Lazan said.
The closing extension could also impact the parking ramp expansion, which is required for the project.
If the closing is extended to June 15, it will be done before construction bids are opened.
If Flaherty & Collins needs a further extension, the ramp expansion would incur additional cost for winter construction.
HRA Chairman David Jeffrey is concerned that Flaherty & Collins has no earnest money into the project.
The city has invested a lot time with staff, consultants and attorneys, he said.
Perhaps the city should ask Flaherty & Collins to put some money into this, Jeffrey said.
It does not make sense to go after Flaherty & Collins for money when the city loaning funds to the project, said Mayor Bob Ramsey.
Suite Living
The Suite Living developer Toti Development was expected to close on its 1.8 acre parcel at the end of March.
The developer has asked the closing date be extended to Aug. 15.
Although the purchase agreement requires the developer to put up an additional $25,000 hard earnest money to the title company, the company has asked that be waived.
Toti is asking for the waiver because it is incurring additional costs to build the urban design required in the COR, Lazan.
The Suite Living designs are usually single level modular built buildings.
In the COR, the city wants it to be a three-story building with a flat roof, Lazan said.
It is taking longer to design what the city wants, he said.
If the HRA agrees to the extension, it would receive the $50,000 hard earnest money Toti has already put up, Lazan said.
Toti will also be paying a monthly extension fee of $5,000 until closing.
Tammy Sakry is at tammy.sakry@ecm-inc.com
