Minutes - Economic Development Authority - 04/10/2008

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Member Kiefer asked if the intent is to have both Taco Johns and Cousin's Subs on the site. Economic Development Coordinator Sullivan responded in the affirmative. Economic Development Consultant Mulrooney stated he believe the strategy the owner is pursuing is sound. He provided an overview of trends in the market with convenience stores, explaining the importance for these businesses to draw people into the store to buy convenience store items. He explained in the past about 75% of net profits came from gasoline sales and 25% from inside the store; this has completely flipped now with less than 15% of net profits coming from gasoline and 85% coming from inside the store. Having other uses, like a Cousin's Subs and Taco Johns are critical to the success of an operation like this. Economic Development Coordinator Sullivan pointed out this makes it even more important for the EDA not to get involved with this project. There are a number of gas station stores in this community, and an SA that had a median put in as well. To participate with one and not another in such a highly competitive market would be irresponsible. Chairperson Riley pointed out that the guidelines are discussed periodically and have been approved by the Board. The recommendation is to deny this application because it does not fit the guidelines. Member Strommen concurred. She noted that Mr. Yamoutpour is trying to adapt to the market which she would not want to discourage. She suggested the communication to Mr. Yamoutpour regarding the application explain that the EDA is constrained in their ability to participate with the request, but that they encourage his efforts, and to highlight his opportunities through the EDA's participation in the sign package at Sunfish Commons. Member Kiefer pointed out that part of the request in the application includes funding for signage, which has been addressed with the EDA's participation in signage at Sunfish Commons. Motion by Member LeTourneau, seconded by Member Kiefer, that based on the guidelines of the Revolving Loan Fund, and exclusively based on those guidelines, the Revolving Loan Fund request for Sunfish Express must be denied at this time. Motion carried. V oting Yes: Chairperson Riley, Members LeTourneau, Kiefer, Steffen, and Strommen. Voting No: None. Absent: Member Elvig. Case #2: Consider Sale of Lots 1 and 4Ato Panther Precision Machine Economic Development Coordinator Sullivan reviewed that the City of Ramsey has been actively negotiating with Panther Precision Machine to locate a 25-30,000 square foot expansion in Sunfish Lake Business Park. A general concept plan, which provides for construction up to 40,000 square feet, has been submitted. The concept plan includes a solution to the soil issues on the lot. Panther Precision Machine currently employs 30 employees and has hired 19 since relocating to Ramsey in 2003. As part of this project, Panther will commit to hiring an additional 8 employees earning at least $14.00 per hour within two years of moving into their new facility. Mr. Sullivan indicated the Board has been provided with a letter outlining the terms proposed by Panther. Generally speaking the terms seem reasonable and staff is prepared to recommend a Economic Development Authority/April 10, 2008 Page 4 of 14