Agenda - Council - 08/09/1994 - Laserfiche WebLink

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#/0 ECONOMIC DEVELOPMENT ACTIVITIES By: Ryan Schroeder, City Administrator Background: At the June 28,71994 meeting, Council authorized staff to enter into an option agreement for property north of ParaBody, along Sunfish Lake Boulevard N.W. This has been completed. At the same meeting, staff noted that two other option offers had been gained; however, due to the lower priority of: these parcels, staff recommended not entering into the agreements at that time. Since then, staffr has been approached by a party interes)ed in building a machine shop on that property. Whil~ a project on that site is not a certainty,t, staff believes that entering into a $500 option and purs~ging the $20,000 purchase, contingent upon a simultaneous closing with the development progoser, is worth the effort? ~ ~,,~¥· 45,~h ~ On August 5, 1994, staff is meeting with At4~mey ~ooflrich t° w°rk out a purchase offer to Mary Eggum, represen:ting the Ramsey 67 Industrial Park. This is for the McKinley Street right-of-way and all, or a pon)on of, the property north of the right-of-way under one ownership. When the Committee of Mayor Gilbertson and Councitmember Hardin met in June to discuss this property, it was suggested that we offer to buy the right-of-way plus some additional property north of McKinley. We ~ill bring the result of the August 5, 1994 meeting to Council on August 9, 1994. We are proceedir:~g toward a September 1, 1994 closing on 14100 Jaspar Street N.W. [Minnesota Sawdust and Shayings]. You will recall that upon the eventual purchase, Council authorized up to $280,000 toward'iremodeling the block building and completing site improvements. We had not requested money for remodeling and repair of the steel building as it is proposed for cold storage use. Recently, we were approached by the Anoka County Economic Development Partnership [an entity created by Anoka County several years ago] regarding the.Steel building on Jaspar Street N.W. They have tentatively offered to remodel the building. In return, they desire use of the building for a two-to-three year period [long enough to amortize their investment]. They have proposed using the facility as an ~cubator for a manufacturing entity. Intended, is that once the manufacturer [that they will have ali equity position in] gets up and running, they would then move to a different location in Ramsay and contribute to the tax base. Staff proposes that the EDA rent the building from the City at ~3/foot and lease it back to the ACEDP for $1/year who in turn remodels the building. Upon oompletion of the lease term, the City would gain control of a repaired building and, in the meantime, receive a $39,375/year lease payment. The ACEDP is receiving consideration of this concept by their Board on August 5, 1994. We should know on:August 9, 1994, if this is something CounCil will have the opportunity to consider. If we gt) forward, we would continue remodeling the block building, intending to move our operation the~'e prior to winter. We would use our existing Trunk Highway #47 facility over the lease term for x:old storage and storage of off-season equipment. We have discussed constructing a salt storage shed on the Jaspar Street site with the City of Anoka. Suggest.tgi is that the two cities split the consumction cost 50/50. The lease payment received alone is considered as a source for our portion of the construction cost. Council authorized an agreement with the City of Anoka to provide a water system interconnect on Highway #10. W~ recently became aware that Anoka will be constructing, a 12" water main along County Road #11!5, terminating at Magnesium Street where we have a16' main. Interconnection of these two mains allows an additional delay in well and tower construction gained from the