Agenda - Economic Development Authority - 03/10/2011

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Economic Development Authority (EDA) Date: 03/10/2011 By: Aaron Backman Administrative Services Title: Minneapolis Manufacturing Company Developments Information Item #: 4. 3. Background: During the past five weeks the Economic Dev. /Marketing Manager has been been working on a significant industrial project. Specifically, the EDA has been working closely with a manufacturing business that is located in Minneapolis and Chicago that requires an additional industrial site to meet customer demand. The company requires a site of 15 to 20 acres. Overall, it has about 650 employees, is very solid financially, and would be a sizable utility customer. They also have an aggressive schedule for moving into this new facility. Thus far Economic Dev. /Marketing Manager has had eleven meetings or presentations regarding the project —two meetings and a tour with senior management at the main plant in Minneapolis, two city council work sessions (re Council consensus whether to sell 20 acres of the City property known as the Bury & Carlson site, and acquired for a future public works facility; and Council consensus in favor of land sale proposal provided to the prospect), a City Council presentation and approval of a real estate services agreement, assembled a development team (Mike Mulrooney, consultant, Jeff LaFavre, Integrust Advisory Group, and Brian Burandt, Connexus) and held two meetings with them, set up two meetings with the lessee currently on the land (Bury & Carlson), set up a meeting with Bonestroo, the prospect's engineer /architect, and met with representatives of Connexus. (This list excludes various internal staff meetings.) I have provided copies of the Phase I environmental report, surveys, and various site maps to the key decisionmakers. The results thus far: the business prospect is pleased with Ramsey's response, is considering construction a 100,000 sq. ft. manufacturing building and a second phase of the same amount, and they hope to make a decision in 30 days. (See attached Site Map with one potential configuration.) As of last Thursday, March 3rd, the Board of Directors for the prospective company is still reviewing various site options, including the Bury & Carlson site in the City of Ramsey. Management has indicated that Ramsey is their "preferred location" and that they would have a decision in one to two weeks. Observations: Funding Source: Project costs pertaining to the land sale proposal or for the real estate listing agreement with Integrust Advisory Group would come from land sale proceeds, EDA funds, and /or TIF funds. Staff Recommendation: Project update only EDA Action: No action required at this time. Mpls. Manuf Site Map Attachments Form Review