Agenda - Economic Development Authority - 10/11/2012

Home

Economic Development Authority (EDA) 4. 2. Meeting Date: 10/11/2012 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Title: 15153 Nowthen BLVD, Old City Hall Site, Consider Future Development Background: As the previous case had outlined, Staff has been approached by Connexus Energy to consider certifying the Old Municipal Center Campus as Minnesota "Shovel Ready" certified site. Staff has conducted research on this request and would like to present findings with the EDA and consider a plan for future development of this site. The proposed future use of the Subject Property is targeted for a data center. Observations: The Subject Property is three separate parcels, covering just over 20 acres. See attached profile for detailed information. Currently, the City houses their second fire station in one of the two existing buildings located on the Subject Property. In summary, the "Shovel Ready" certification gets a number of documents, licenses and surveys in order before a developer steps forward. This makes a Ramsey site more competitive with other available sites. Additionally, the certified sites are marketed by the State of Minnesota Department of Employment and Economic Development (DEED) at a national level. Staff was able to meet with a State of Minnesota DEED Representative regarding this potential project. Although two buildings and a fire station remain on the Subject Property, the City would still be able to certify the site. Based on input from the State, Ramsey may have a number of the "Shovel Ready" requirements on record (or easily accessible) --which would reduce the cost of becoming certified. Staff is working to locate said documentation. An estimated cost to become "Shovel Ready Certified" is not completed; Staff will bring an estimate to the October meeting. At the previous EDA meeting, Staff was requested to research what the Subject Property would be worth, from a tax revenue perspective (for the City) for residential subdivision versus a data center. Attached to case is a detailed comparison of both proposed uses. This information was put together by the City's Economic Development Consultant, Mike Mulroony. In summary, it is estimated a data center would generate $268,000 and a residential development would generate $50,000 annually in taxes for the City of Ramsey (not including County/School district portions). Mr. Mulroony will be available to cover said analysis in detail, upon request. Funding Source: EDA Fund Staff Recommendation: Direct Staff to move foward with pursuing the proposed Shovel Ready Certificaiton. EDA Action: Direct Staff to move foward with pursuing the proposed Shovel Ready Certificaiton. Attachments Subject Property Profile