Agenda - Council - 06/11/2013 - Laserfiche WebLink

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2.04: Discuss Economic Development Prospect Foxtrot Assistant to the City Administrator Brama reviewed the staff report and explained that Prospect Foxtrot is interested in locating its manufacturing operations and needs a 12-acre site that is pad ready. If a site can be found, Prospect Foxtrot would like to complete their expansion in phases with a 77,000 sq. ft. first phase for 50 employees. The second phase would include a 48,000 sq. ft. expansion and significant additional job growth. Assistant to the City Administrator Brama advised that Ramsey does not currently have any 12 acre sites that are correctly zoned; however, the City's current Public Works campus (five separate parcels totaling over 13 acres) may be an option to consider since the site would be constructed in phases. Assistant to the City Administrator Brama presented the options as detailed in the staff report. He stated the prospect would require an option agreement on the remaining two parcels on the far east side of the site on a ten-year term for fair market value with an inflation factor and two-year call. He noted the ten-year term would provide timing for Phase 2. This site is at the entrance to The COR off Ramsey Boulevard and the prospect indicated its intent to construct a high quality building and landscaping. In addition, the prospect is working with the State of Minnesota to get a grant to pay for one-half of the public improvements. Assistant to the City Administrator Brama stated they are interested in a business subsidy and staff intends to act in accordance with the adopted policy and work with the applicant to submit such an application for Council consideration. He requested Council input on this opportunity and general direction regarding economic development assistance. If supportive, staff would prepare a sales ordinance for introduction on May 28, 2013, and an ordinance introduction to allow vacation of right-of-way at the June 11, 2013, Regular Session. Councilmember Kuzma asked if this business cuts cardboard. Assistant to the City Administrator Brama stated the company cuts multi -ton reams of cardboard to specifications for a manufacturer that needs cardboard boxes. Councilmember Kuzma stated support for this idea. Councilmember Backous stated he is also excited about this opportunity and asked if the salt shed can be easily moved. Public Works Superintendent Riemer stated salt delivery occurs tomorrow. Councilmember Backous stated if the salt shed can be moved without a leaseback, it would be ideal but it appears the timing does not work to do so. Public Works Superintendent Riemer stated that can be accomplished over the summer months. Assistant to the City Administrator Brama noted the lease is for the City's portion of taxes only so it should be a wash. Councilmember Riley stated this looks good and appears it must be a strong prospect if the City is making this recommendation. City Council Work Session / May 28, 2013 Page 6 of 8