Agenda - Council - 06/14/2011 - Laserfiche WebLink

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CC Regular Session Meeting Date: 06/14/2011 By: Aaron Backman, Administrative Services Title: Approval of Business Subsidy Agreement with Ramsey Retail Rental for SAC/WAC Assistance Background: At the March 8, 2011 regular meeting the Ramsey City Council approved a $68,000 RLF Loan to Wells Catering, Inc. and up to $55,000 in Sewer Access Charge (SAC) and Water Access Charge (WAC) fee assistance to the developer, Ramsey Retail Rental, LLC as part of The Falls Cafe project. That project involves the relocation of the Wells Catering business and the establishment of a full- service restaurant on the first floor of the Ramsey Office Plaza Building. While the City Council approved up to $55,000 in financial assistance, the final determination by the Metropolitan Council was that SAC/WAC fees for the new sit -down restaurant would total $35,579.00. It should be noted that when the developer obtained the building permit on 5/2/11 to start construction, they paid all the City's SAC and WAC fees upfront. Attached is the relevant business subsidy agreement between the City and the developer. It outlines that the restaurant will create at least 10 full -time equivalent jobs at a wage rate of at least $12.00 per hour (including tips) during the first two years of operation. As part of the agreement, a note for $35,579.00 will be set up. The terms of the note will be zero percent interest for seven years with annual payments of $5,082.27. The first payment would be on April 1, 2012. To receive the financial assistance, the developer must ensure that a full- service restaurant operates at least seven months during any fiscal year. Recommendation: Approve the proposed business subsidy agreement for $35,579.00 between the City of Ramsey and Ramsey Retail Rental, LLC. Funding Source: EDA funding would be utilized for paying the note over seven years. 5. 6. Council Action: Approve the business subsidy agreement between the City of Ramsey and Ramsey Retail Rental that provides $35,579.00 over seven years at zero percent interest commencing April 1, 2012 and continuing until April 1, 2019. Bus. Subsidy Agreement - Ramsey Retail Rental Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 06/08/2011 05:45 PM Form Started By: Aaron Backman Started On: 06/08/2011 01:41 PM Final Approval Date: 06/08/2011