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<br />Case # 1 <br /> <br />Consider Reduction in Development Fees for the Anderson Dahlen Expansion <br />By: Sean Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />Anderson Dahlen built an 84,000 SF manufacturing facility in Ramsey in 1999. The total <br />employment of the company was 110 in 1999 and now they have grown to 160 with wages <br />around $16-$20/hour. The proposed 50,000 S.F. expansion will also create an additional 20 jobs <br />over the next two years. Anderson Dahlen purchased Outlot A, immediately to the south of their <br />current facility, for future expansion in 2003. The North 3.22 acres of this parcel is necessary for <br />the current expansion and the fees associated with this acreage is what is in question. The City <br />Council has agreed to defer the development fees for the remainder of th.e parcel that is not being <br />utilized for the current expansion and those fees will be collected at the time of development. <br /> <br />At the June 24th City council meeting tinal site plan was approved for the project and direction <br />was given to the EDA to look at considering a reduction in development fees toward the <br />expansion. This situation is unique in that the proposed expansion is taking place on only a <br />portion of the Outlot, and that the development fees were not paid on it when the property was <br />purchased and the TIF district was still active. There are no new connections to the existing <br />Sanitary Sewer, Storm Sewer and Water systems. The compromise presented below only . <br />includes Sanitary Sewer and Water development fees for the square footage of the building pad. <br />The Storm Water fees are based on the entire lot due to the fact that both the building and land <br />will generate significant run-off. <br /> <br />Full fees with no discount (as presented to Council & in the plat review letter): <br /> <br />. Sanitary: 3.22 acres x $3,630/acre = $11,688.60 <br />. Water: 3.22 acres x $7,914/acre = $25,483.08 <br />. Storm: 3.22 acre x $4,238/acre = $13,646.36 <br /> <br />Total $50,818.04 <br /> <br />Reduced Fees as discussed with the City Engineer: <br /> <br />. Sewer & water (based only upon building footprint within the former Outlot) - 1.06 <br />acres <br />o Sanitary: 1.06 acres x $3630/acre = $3,847.80 <br />o Water: 1.06 acres x $7914/acre = $8,388.84 <br />. Storm is based upon the entire Outlot portion combined into Lot 1 - 3.22 acres <br />o Storm: 3.22 acres x $4,238/acre = $13,646.36 <br /> <br />Total $25,883.00 <br /> <br />The compromise position results in a reduction of development fees of $24,935.04. For future <br />development of platted Outlots there will not be a reduction in development fees. This case is <br />different due to the fact that it is an addition to an existing building that is being built on an <br /> <br />-7- <br />