By a 5-2 vote, the Ramsey City Council approved selling a 10-year general obligation (GO) bond for The Residence luxury apartment project.
The March 13 action, on which Councilmembers Sarah Strommen and Jason Tossey voted no, confirms the Feb. 28 vote to sell the bonds by the Ramsey Housing and Redevelopment Authority (HRA), which comprises the council.
The $7.45 million in GO bonding, which is expected to be sold April 24, will help fund the construction of a 230-unit market rate luxury apartment complex by Flaherty and Collins Properties (F&C).
The new building will wrap around the newly expanded parking ramp west of the municipal center.
The project will be receiving $20.45 million in private financing from PNC Bank.
While he has been an opponent of the city financing part of the project, Councilmember Randy Backous said he has no choice but to support the project.
It is a beautiful project, but he does not think “the level of the city’s financial involvement is reasonable,” he said.
Strommen said that financial involvement is something she won’t support.
This will be his last opposition on the project, said Tossey, who has repeatedly said he did not like city government being financially involved in the project.
The formula timelines that the city’s financially advisers have set are designed to help the project succeed, said Mayor Bob Ramsey.
“I don’t know how it can fail,” he said.
F&C is expected to close on the property it is buying from the city March 23. The company has already deposited the $250,000 down payment.
Land sale proceeds for the HRA will be $750,000.
The first payment on the GO bond is scheduled in June 2015.
Tammy Sakry is at [email protected]