Agenda - Economic Development Authority - 05/15/2008

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Chairperson Riley inquired about the likelihood of improved screening of the outdoor storage. Community Development Director Miller suggested a requirement for plastic slats to be inserted in the chain link fence. The Board discussed the letter to the City from Mr. Perkins and the proposal to purchase the property based on Mr. Perkins' plan. It was noted that the Mr. Perkins's plan is based on a purchase price lower than the City's cost to purchase the property. It was noted there is not a precedent of the City having purchased land and sold it at a price 25% lower than the purchase price two months later. Economic Development Coordinator Sullivan indicated the $2.98 per square foot sale price is a compromise with Mr. Perkins for the price he expects of $2.14 per square foot. He clarified that the funds used on the purchase of this property were through TIF and a portion of ED A funds. No General Fund dollars have been used on this site. Ultimately the City Council will make the decision on this sale. Member LeTourneau verified with Economic Development Coordinator that the sale price on the property could be determined by the City Council. Chairperson Riley suggested requesting an update on the last appraisal that completed on the property. Motion by Member LeTourneau to approve of the sale of the north 32,280 square feet of Lot 2, Block 2, Gateway North Industrial Park, at a price no less than $3.82 per square foot, and to recommend that the City Council enter into a purchase agreement for the sale of that property. Further discussion: Economic Development Coordinator Sullivan suggested the following as an amendment to the motion: to sell the property at a price per square foot that is supported by an appraisal. Member LeTourneau questioned how this would protect the City against the possibility of the appraisal coming in at a much lower price. Community Development Director Miller suggested the motion could state that the price be at the appraisal value, but not less than a certain amount. The motion on the floor died for lack of a second. Motion by Chairperson Riley, seconded by Member Kiefer, to approve of the sale of the north 32,280 square feet of Lot 2, Block 2, Gateway North Industrial Park at fair market value to be determined by an updated appraisal, and to recommend that the City Council enter into a purchase agreement for the sale of that property. Voting Yes: Chairperson Riley, Members Kiefer and Steffen. Voting No: Member LeTourneau. Absent: Members Elvig and Strommen. Case #4: 2008 Ramsey Business of the Year Nominations Economic Development Coordinator Sullivan stated each year at the Ramsey Business Appreciation Day the City presents a business with the Business of the Y ear Award. The criterion for consideration of nominees is included on the nomination form and was distributed at Economic Development Authority/April10, 2008 Page 9 of 14 9