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<br />By: Sean M. Sullivan, Economic Development <br />Coordinator <br /> <br /> <br />CITY COUNCIL WORK SESSION <br />Topic Report: Economic Development Decisions <br /> <br />Background: <br /> <br />As a result of recent Council discussions regarding the EDA land sales process, staff thought it <br />useful to provide some background to Council regarding the process for the sale of City land for <br />redevelopment purposes. As the initial contact person for land inquiries, the Economic <br />Development Coordinator evaluates whether or not the inquiry is serious and gauges the scope of <br />the project. Project considerations generally include: timing of the project, need for assistance, <br />current employment, future employment, building size, building materials and compatible land <br />use. Once an inquiry has been determined to be valid, a site selection process begins. Site <br />selection is simply matching the needs of the developer with City goals. Economic development <br />goals of the City include: increasing the tax base, retaining jobs, creating jobs, promoting <br />diversity among business types, promoting current business growth, redeveloping blighted or <br />underutilized properties, utilization of quality building materials, and maximizing development <br />whenever possible. All of these factors help determine whether or not the proposed developer is <br />a good fit for the City and if a site of a proper size is available. <br /> <br />Once all of this information is gathered, the Economic Development Coordinator begins to <br />negotiate general terms and expectations of the city and developer. Almost all proposed projects <br />include a request for financial assistance, primarily through Tax Increment Financing (TIF). It <br />should also be noted that assistance is only provided on an as needed basis and the business must <br />demonstrate its need. Attached are general guidelines describing the factors that go into granting <br />TIF assistance packages. If general terms can be agreed upon, a written offer or letter of intent is <br />requested from the proposed developer. If it is only one business that has interest in the property, <br />it is brought to the EDA for discussion and a recommendation for Council. If there are multiple <br />interests in a specific site, it is brought to the EDA for discussion and a recommendation to <br />proceed with one of the businesses. Often times, when there are two businesses of similar size <br />interested in lots in Ramsey, Staff can find alternative sites to accommodate both businesses. <br />During negotiations, the developer is made aware that City Council ultimately approves the land <br />sale or assistance package and that the Council has the discretion to amend it. City Staff can only <br />recommend an assistance package, not grant one. <br /> <br />Discussions at EDA meetings help guide the decision making process and selecting quality <br />businesses for the City of Ramsey. <br /> <br />Action Statement: <br /> <br />Based on discussion. <br /> <br />Reviewed by: <br />Economic Development Coordinator <br />Assistant City Administrat~ <br />City Administrator <br />/ <br /> <br /> <br />CCWS: 12/11/2007 <br />