Agenda - Economic Development Authority - 01/10/2013

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Economic Development Authority (EDA) 4. 5. Meeting Date: 01/10/2013 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Title: Updates: Old City Hall Development (data center), Nordvick Property Demolition, Kuro Fitness RLF, 6701 Highway 10, Windsorwood Sale, 8019 146th Ave. Background: NA Observations: Old City Hall Development (data center) The EDA and City Council have expressed interest in developing the old municipal center site, 15153 Nowthen Boulevard ("Subject Property") for a data center user(s). The City is partnering with Connexus Energy to pursue this development opportunity. As part of this effort, Staff was directed to complete the State's Shovel Ready program; which is anticipated for completion come spring/early summer. Moving forward, the City will be considering a cost/benefit analysis of various development scenarios and what zoning regulations the City should consider for the Subject Property. To aid this process, Staff has ordered development scenario sketch plans. The City expects to receive said plans in the next two weeks. NOTE: options will include a single family residential development. Attached to this case is an article recently published in the Business Journal regarding data centers: "Promise of Data Center Building Boom is Sputtering." 2012 EDA Chair Riley recommends the EDA review said article. 8020 147th Ave, Building Demolition The EDA purchased the property located at 8020 147th Avenue, known as the Nordvick Property ("Subject Property"), in the spring of 2012. A portion of the Subject property was dedicated as right of way for the realignment of Armstrong Boulevard. About one acre of developable land remains. The Subject Property contained two structures, a parking lot and a number of other improvements. The EDA ordered buildings on the Subject Property to be demolished and the site to be cleaned for future development at the October EDA meeting. Besides seeding, demolition and cleanup of the Subject Property is complete. Staff is working with the project contractor to make sure said work is completed. More updates will be provided as information is available. At the November EDA meeting, it was decided to consider future development of the Subject Property in conjunction with surrounding parcels, as the City will likely attain adjacent properties. Staff will bring forward a case regarding the future development of this parcel at the February EDA meeting. Kuro Fitness RLF The EDA and City Council approved an EDA Revolving Loan Application for Kuro Fitness in November. Staff is working with the RLF applicant to close the approved said loan. This process is on hold until Kuro Fitness is open and Staff has an opportunity to inventory collateral. It's anticipated the store will open and the City's loan will be closed in the coming weeks. 6701 Highway, For Lease As part of the effort to realign Highway 10, the State enabled Cities to purchase properties located in future right of way with Revolving Acquisition Loan Fund (RALF) dollars. The City of Ramsey owns a number of RALF