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Mr. Schroeder stated that earlier in 1990.and 1991, when this project was discussed, it was <br />contemplated that the City would gain the right-of-way free but would have to put in a <br />$500,000 road improvement. Staff is asking for authorization to proceed forward with the <br />option agreements to the owners of the property. It would be our intent that the owners be <br />warned it's contingent upon final ·Council approval. <br /> <br />Attorney Goodrich stated that Mr. Eggum is interested. Ramsey 67 Industrial Park is <br />owned by five to six owners not living in the area. Mr. Eggum may be interested in selling <br />the entire parcel; however, it is viable for the City to purchase just the portion north of <br />McKinley Street. <br /> <br />Councilmember Hardin inquired whei;e the funding would come from for this purchase. <br /> <br />Mr. Schroeder stated there is a fairly significant balance in that Tax Increment Account. He <br />added that there has been a fair amount of interest in these parcels. <br /> <br />Motion by Councilmember Hardin and seconded by Councilmember Peterson to authorize <br />a purchase offer on Ramsey 67 Industrial park property as recommended by Attorney <br />Goodrich. <br /> <br />Motion carried. Voting Yes: Mayor Gilbertson, Councilmembers Hardin, Peterson and <br />Zimmerman. Voting No: None. Absent: CouncilmemberBeyer. <br /> <br />Mr. Schroeder indicated that Staff is proceeding toward a September 1, 1994 closing on <br />14100 Jaspar Street N.W. Upon eventual purchase, as Council authorized, $280,000 will <br />go toward remodeling the block building and completing site improvements. No money <br />was requested for remodeling and repair of the steel building as it is proposed for cold <br />storage use. Staff was recently approached by the Anoka County Economic Development <br />Partnership regarding that steel building. They have tentatively offered to remodel the <br />building. In return, they desire use of it for a two-to-three year. period. They have <br />proposed using the facility as an incubator for a manufacturing entity. Intended, is that <br />once .the manufacturer gets up and running, they would then move to a different location in <br />Ramsey and contribute to the tax base. Mr. Schroeder stated that Staff is proposing that the <br />EDA rent the building from the City at $3/foot and lease it back to the ACEDP for $1/year <br />who in turn remodels the building. Upon completion of the lease term, the City would gain <br />contrbl of a repaired building and, in the meantime, receive a $39,375/year lease payment. <br />The City would use its existing Trunk Highway #47 facility over the lease term for cold <br />storage and storage of off-season equipment. <br /> <br />Councilmember Hardin inquired if the City would designate what improvements would be <br />done to which Mr. Schroeder replied absolutely. <br /> <br />Councilmember Hardin inquired about the rent in comparison with the Sharp facility to <br />which Mr. Schroeder replied that the City would be comparable at $3/foot. This is a lower <br />rate but the space does not compare with what Mr. Sharp will offer. Mr. Schroeder added <br />that this also provides for business enhancement. <br /> <br />Councilmember Hardin inquired if it would be one business or more than one. <br /> <br />Mr. Schroeder replied that it would be a particular business; however, it would be leased to <br />the partnership so the City is guaranteed to know who it is dealing with. <br /> <br />City Council/AUgust 9, 1994 <br /> Page 17 of 20 <br /> <br /> <br />