Ramsey has agreed to the terms of selling city-owned land in The COR to a senior housing developer.
On a 6-0 vote, the Ramsey City Council on Sept. 26 agreed to sell 4.2 acres to a Washington-state company, Inland Group, for $731,808. The $4 per square foot price was the city’s asking price, according to Patrick Brama, assistant city administrator and economic development manager.
Inland Group will construct and Affinity Living Communities will manage an apartment complex that would be leased to residents ages 55 and older who do need assisted living or memory care services.
The last plan the city council saw was for 175 units, but Brama said the estimated range is 150 to 200 units. These would be market-rate apartments and low income rentals. The anticipation is for a four or five-story building, according to Brama.
The building will be located on the opposite side of Sunwood Drive from The Residence at The COR and the Ramsey Municipal Center. A preliminary layout prepared by Ramsey city staff show it next to a 2-acre park and 14,000-square-feet of commercial or restaurant space. Inland Group will next develop specific site plans that the council will need to approve during its platting process.
“I think it will be a great addition to our community,” Council Member Mark Kuzma said. “We need this type of product in our community. I think it will be helpful as our population ages.”
Property closing will not happen until next spring. Brama reported that the purchase agreement that the council approved gives an inspection period that ends on April 1 and the closing comes 30 days after that.
The closing could be extended two times with each period being 60 days, but Inland would have to pay $10,000 per extension if it got to that point.
Inland must provide $25,000 in earnest money.
After the property sale closes and Inland Group owns the land, it has six months to obtain a building permit from the city. The city is requiring Inland to sign a Right of Re-entry Agreement at closing. This would allow the city to reclaim title to the property if the developer buys the land and then doesn’t start a project.
Ramsey was going to go through this procedure with McDonald’s before the two sides settled out of court. It had this Right of Re-Entry in that purchase agreement as well but had approved time extensions for groundbreaking.
Inland has up to 2.5 years to obtain a certificate of occupancy after closing. If this construction deadline is not met, Inland Group would have to pay the city $50,000. If this penalty is not paid within 30 days, the city would have Anoka County assess the penalty against the property.