Agenda - Economic Development Authority - 06/06/2013

Home

Economic Development Authority (EDA) 4. 1. Meeting Date: 06/06/2013 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Title: Introduce Economic Development Prospect Foxtrot Background: Prospect Foxtrot is an economic development prospect interested in locating their operations to the City of Ramsey. Prospect Foxtrot is a manufacturing business located in northwest region of the Twin Cities, they currently employ 24 people and have a 25,000 square foot manufacturing facility. The current host City of Prospect Foxtrot does not have adequate space available to allow for expansion. Prospect Foxtrot is interested in relocation of their business as soon as possible, as they have recently reached an agreement to sell their current facility. The ideal situation for Prospect Foxtrot is a 12 acre site, that is pad ready. Prospect Foxtrot would like to complete their expansion in phases. The first phase would include a new 77,000 square foot facility, with 50 total employees. The second phase would include a 48,000 square foot expansion (125,000 total) and significant additional job growth. Unfortunately, the City of Ramsey does not have any 12 acre sites available today that are zoned correctly (i.e. employment district). However, because the prospect can complete their project in phases, the City was able to identify a solution --the City's current Public Works campus. Please review the 'observations' section for more information on the proposed solution. Purpose of Case . Introduce Prospect Foxtrot to the EDA (a rep will be present). Observations/Alternatives: The City's current Public Works campus and an adjacent City -owned parcel has been identified by Staff as a solution for Prospect Foxtrot's desired project. The public works campus consists of five separate parcels totaling over 13 acres in size (see reference map). Today, the two eastern lots are heavily used by the City's Public Works Department, the south central lot is moderately used and the north central and western lots are vacant (see availability map). It is Staffs assumption the Public Works campus will be vacated over the coming decade since the City has acquired land immediately to the east (i.e., Bury and Carlson) for that purpose. With that in mind, and because Prospect Foxtrot is willing to complete their project in phases, Staff has developed a proposed project solution (see proposed project map). The proposed solution would require a number of different agreements/transactions in order to meet the needs of Prospect Foxtrot. In general, listed below are the required steps. • Sell the western three parcels • Lease back a portion of the south central parcel (salt shed) for five years • 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