Agenda - Council Work Session - 05/28/2013

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• Place an option to purchase agreement on the two eastern parcels for ten years (which would allow for phase II of the proposed project --see phase II map) Prospect Foxtrot, the EDA, the State and City Staff have reviewed the proposed solution and support moving the project forward. Because the Prospect Foxtrot would like to vacate their current location as soon as possible, the City of Ramsey will need to efficiently respond to the proposed project/prospect. A number of items need to happen in order to move the proposed project forward quickly; please reference the attached timeline. Therefore, Staff will be requesting Council authorization to begin a number of processes on May 28. Lastly, Prospect Foxtrot has indicated interest in City financial assistance for the proposed project (known as a "Business Subsidy). Staff is working with the prospect now to attain detailed information on said request. It is likely Prospect Foxtrot will be requesting a land write down (reduced land sale price). It is not uncommon practice for City's to financially assist economic development projects in some fashion. The City of Ramsey recruited a majority of its larger employers (located in Ramsey's Industrial Parks) utilizing business subsidies; specifically, TIF land write downs. Staff would like to discuss this topic with the City council. Staff needs to understand if the City Council has an appetite to receive a request for a business subsidy from prospect Foxtrot. The City has adopted policies on businesses subsidies; which Staff intends to utilize (see attached business subsidy policy). Receiving a request does not obligate the City Council to a business subsidy. NOTE: The EDAbriefly reviewed this case on May 16 and invited Prospect Foxtrot to submit a formal request for a business subsidy. Recommendation: Staff had a chance to meet with Prospect Foxtrot representatives and tour their existing facility. It is Staff observation Prospect Foxtrot is a quickly growing successful business with a strong outlook. Prospect Foxtrot can provide new tax base, new jobs and a quality business campus for the City of Ramsey. Additionally, it is possible to structure an economic development agreement to provide a partial funding source for the future public works campus. Lastly, a number of the Public Works campus parcels were identified as surplus City owned land in 2012; and are currently tax exempt. Developing the Public Works campus would partially achieve a previous Council strategic goal --reduce the inventory of surplus City owned land. Because Prospect Foxtrot's timeline (phased approach) matches with the City's timeline to vacate the current public works campus (may require discussion), Staff believes the proposed solution is logical/beneficial and should be considered by the City Council for approval as outlined below. 1. Provide Staff with general direction regarding the proposed project 2. Provide Staff with general direction regarding economic development assistance 3. Authorize Staff to introduce Sale Ordinances (5/28/2013 Regular Session)** 4. Authorize Staff to introduce ordinance to vacate right -of -way (6/11/2013 Regular Session)* * **If the proposed project doesn't move forward, the City is NOT put in a compromising position by passing ordinances now. Said ordinances do not obligate the City to sell land or vacate ROW; they simply ALLOW the City to do so. Prospect Foxtrot will need to enter into a formal purchase agreement with the City and complete a formal vacation of ROW application before either action is can move forward. The Council will have a chance to review/approve both items. However, waiting to begin the ordinance process will push the project timeline out; and could potentially make the proposed Ramsey solution unrealistic for the prospect.