Laserfiche WebLink
NOTE: prospect Foxtrot has indicated phase one of this project will include a 77,000 square foot building with <br />offices facing Ramsey Boulevard (entrance to The COR). Prospect Foxtrot's goal is to have 50 employees within <br />five years; and begin phase two of their Ramsey facility (48,000 square foot addition). <br />Alternatives <br />The EDA will have two decisions to make (A) what amount of business subsidy should be provided; and (B) how <br />should the subsidy be provided. Detailed information will be presented at the EDA meeting. Below is a summary. <br />(A) What amount of subsidy should be provided? <br />According to the City's adopted business subsidy policy, the City is allowed to provide $925,000 in business <br />assistance to the proposed project. The EDA (and City Council) will need decide what action to take: <br />(1) provide the requested $924,000 land write down <br />(2) counter offer prospect Foxtrot for a different sale price <br />(3) do not provide a business subsidy. <br />(B) How should the subsidy be provided? <br />(1) The City is able to provide assistance by simply writing down the cost of land; and not explicitly re -pay <br />itself back. This alternative would still require the prospect to enter into a business subsidy agreement. <br />Positives: instant significant tax base for the City ($20,000-$37,000 per year*), no economic development <br />tools needed, quick/fast response/process for prospect. NOTE: the prospect does have a short timeline. <br />Negatives: the City would not explicitly re -pay itself back for the land write down. The City would not pull <br />tax dollars from Anoka County to help pay for the land write down (which is possible with TIF). <br />(2) The City is able to provide assistance by writing down the cost of land; and explicitly re -pay itself back <br />by utilizing an economic development tool. Attached to this case is a summary of what tools are available; <br />including revenue generations. This alternative would require the prospect to enter into a business subsidy <br />agreement. <br />Positives: long term significant tax base ($20,000-$37,000 per year PV 9-25 years out), ability to pull tax <br />dollars from Anoka County to pay for the land write down (TIF only). <br />Negatives: time consuming/complex process to provide TIF/Abatement, economic development tools are not <br />'needed' in this situation (as the City owns the land). <br />(3) The City could not provide a business subsidy. <br />Recommendation: <br />Recommendation will be provided at EDA meeting. <br />Funding Source: <br />Depends on alternative chosen by EDA/City Council. <br />Council Action: <br />Staff is requesting the EDA provide a recommendation to the City Council for the following items: <br />(A) Amount of subsidy to be provided: <br />(1) provide the requested $924,000 land write down <br />(2) counter offer prospect Foxtrot for a different land sale price <br />(3) do not provide a business subsidy <br />