Agenda - Council - 05/23/1995 - Laserfiche WebLink

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I I I I I I I I I I MEMORANDUM DATE: April [24, 1995 TO: May~ and City Council FROM: Ryan:,Schroeder, City Administrato RE: Development Activity Between 1991 and 6994 the City Council worked very diligently on putting Ramsey's financial house in order. After three years of conservative budgeting, enterprise, and fund creation (i.e., EDA, Revolving Lojan Fund, Public Improvement Revolving Fund, etc.) and policy information (i.e., Excess Revenu~ Policy), Ramsey was able to begin actively working on business promotion. This was only possible because of the strength of our balance sheet and the ongoing health of our operating statement. Over the past 12 months, the City has actively pursued development opportunities. This has included dedication ~f funding for roadway extensions, utility improvements, land acquisition, and business assistance, i Our level of success has been measured in small steps. As such, it may not be immediately app~ent as to the actual success that has been experienced. Over the past year, ithe Council has signed development agreements with nine commercial or industrial concerns. The result of these agreements is displayed on the attachment. Line 4 of the attachrrlent explains that prior to City involvement, the land parcels that we worked on had. a market value, tf°r tax purposes in the aggregate of $1,278,468. Upon completion of the ~mprovements, thru. value will be a minimum level of $11,358,030 (line 12). Prior to development, the C!ty was receiving $13,205 in annual taxes for these parcels (!ine 9). Upon expiration of the T/F districts, this will have increased to $116,514/year in today s dollars (line 25). If market valuer on these properties increase at the conservative rate of two percent per year, the taxes gained by ~e City 'at that time will instead be $221,341 (line 34). Total taxes generated in that year are expecte~l to be $1,132,120 (hne 31), ~nstead of the predevelopment level of $67,543 (line 6). This is, og course, split by all taxing jurisdictions with the Lion's share going to the school district. If the economy holdS~, we expect activity in our industrial park to continue. Please contact me with any questions.