Agenda - Economic Development Authority - 09/09/2010

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Memo To: Heidi Nelson From: Mike Mulrooney Date: September 1, 2010 Re: Prospect Update Heidi, I am pleased to provide the following update in regard to prospects that we are currently working with on behalf of the City of Ramsey. I will be present at the EDA meeting to review this memo in greater detail. In general, the level of interest in new project development appears to be picking up slightly in spite of the economy. This is somewhat abnormal given the time of year and its relationship to the construction cycle in the State of Minnesota Manufacturing Prospect -This company has expressed interest in acquiring the now vacant Harber Industries building. Plans call for modifications to be made to the property primarily to support floor loads for substantial manufacturing equipment. The company wants to consolidate 2 existing operations into this building. While I have been told that few new jobs will be created in Minnesota, approximately 60 new jobs will be created in the City of Ramsey. Future plans call for expansion of the building onto property currently owned by the City. The company is interested in discussing the possibility of obtaining an option on adjoining property for purchase at a future date. A broker for the company has proposed a purchase price which is insufficient to cover outstanding mortlgage amounts and property taxes that are currently outstanding. The company is seeking a counterproposal from the existing lenders. Manufacturing Prospect - A metro area manufacturer is in the process of searching for a site location fora 140,000 square foot manufacturing facility. The company has outgrown its current facility in the northwest suburban area: The company will employ up to 300 people at the new facility. The total project cost is estimated to be approximately $8 million. Manufacturing Prospect -This prospect is currently operating out of a 10,000 SF building in the north suburban area. The business employs 26 people. Revenues have grown substantially over the last few years. They are now searching fora 20-30,000 SF building in the Ramsey market with room to expand. The owner of the company has expressed some interest in the Harber Industries building. A search of available industrial properties has been completed and the information has been shared with the prospect. A request will be made to meet with the prospect to further refine the site search. Ramsey Bio Business Incubator - a preliminary site plan has been completed for the project. A cost estimate for construction of the facility has also been prepared. We are in the process of completing a tax increment financing estimate to determine the level of potential assistance available from the city. A meeting has been proposed with the owner of GMI for early next week. ~~ 5