Agenda - Economic Development Authority - 10/14/2010

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CONSIDER EDA RESTAURANT SUBSIDY POLICY By: Heidi A. Nelson, Deputy City Administrator/Director of Community Development Background: It has been a long standing goal and desire of the City to attract new, quality sit-down restaurants to the community. To that end, the EDA participated in assistance to the building owner for the addition of Acapulco in the Coborn's anchored retail center in The COR. Recently, the EDA preliminarily approved assistance to the building owner for the relocation of the Well's Catering operation to The Fountains of Ramsey and the addition of The Falls Coffee and Deli in The Ramsey Office Plaza building. The assistance preliminarily approved for The Falls by the EDA is pending City Council approval. To better address the desire of the community to attract quality, sit-down restaurants to the city, the EDA requested that a policy for restaurant subsidy be brought forward for discussion. Attached to this case is the restaurant subsidy policy from the City of Champlin and significant background material that includes analysis of utility fee structures in various north metro communities. The discussion around this issue in Champlin mirrors much of the discussion that the Ramsey EDA has had about this topic; thus I thought it useful to share that background with you. Staff is requesting that the EDA discuss and provide direction to staff with regard to the following policy questions: 1. Definition of quality, sit-down restaurants? 2. Should assistance cover both SAC and WAC chazges? 3. Terms of assistance - Forgiveable? Interest charged? 4. Assistance to cover a percentage of fees or 100%? Staff Recommendation: Review a restaurant subsidy policy and provide direction to staff with regard to establishing a restaurant subsidy policy. EDA Action: Provide direction to staff with regard to establishing a restaurant subsidy policy. Attachment: Champlin Subsidy Information EDA: 10/14/2010