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BACKGROUND (Process/PA) Before the HRA is a PA for a potential land transaction. Moving forward, if PA is approved and executed, the buyer will enter a period of due -diligence; in which they will seek to complete a number of items --notably receiving Site Plan approval by February 18th, 2015. Closing for this potential transaction is March 4, 2015. Construction of this potential project is anticipated to begin in the spring of 2015 and to be completed in the late summer 2015. Notification: NA Observations/Alternatives: Alternative 1: Accept the proposed PA Why should this alternative be considered? Based on past practice for the City of Ramsey, the proposed project would be considered a traditional economic development project. This proposed project would bring 23 jobs paying $17.00-$23.00 per hour; and would bring 3-5 new jobs within 2 years. The projected total property taxes for the proposed development is $26,200 annually (over 10 years, with no inflation, this would equate to $262,000). Today, this property is tax exempt. All Seasons is proposing a quality facility that will help improve the image of U.S. Highway 10 in the heart of Ramsey. Lastly, it is Staffs opinion, based on interactions with the All Seasons management team, this prospect will be a quality addition to the Ramsey business community. Why should the purchase price be considered? As outlined in the background section of this case, the Ramsey HRA purchased 6710 Highway 10 to remove a blighted building/site conditions and return the property back to the private sector for redevelopment. This property was purchased with Anoka County HRA dollars which were levied and intended for said type of use (to remove blight and encourage redevelopment). Both goals would be accomplished by moving this project forward. When the site was purchased, the purchase price ($361,100) included a building, site improvements, and direct access to U.S. Highway 10. All improvements have been removed. Direct access to this site will be eliminated --based on the Highway 10 Access Planning Study anticipated for adoption in November. Additionally, although this site is located adjacent to City infrastructure, it doesn't have the ability to connect to a regional stormwater pond so the required stormwater ponding for new development (the previous use was "grandfathered" with no stormwater ponding) will need to provide stormwater treatment for back-to-back 100-year rainfall events. Lastly, this prospect is fast moving and highly motivated to complete a project by summer 2015. A major in the PA process will increase the risk this prospect considers alternative sites. Why should this alternative not be considered? If the HRA requires a higher transaction price for the sale of this property; or, the HRA is not satisfied with the proposed use for this site. Alternative 2: Provide staff with direction to renegotiate a portion(s) of the proposed PA. If the HRA requires a higher transaction price for the sale of this property, or the HRA is unsatisfied with portions of this PA, staff would recommend a counter-offer to the prospect. This PA has been reviewed by the City Attorney and City real estate broker for errors and concerns. Alternative 3: Reject the proposed PA. Staff would not recommend the proposed PA be rejected with no direction for renegotiation. Funding Source: The property was originally purchased with Anoka County HRA funds, designated for the City of Ramsey. Therefore, all sales proceeds from this transaction with return to the City, unrestricted as to their future use. It is recommended that land proceeds be returned to the City's Economic Development Fund, to be used for future economic development projects. Recommendation: