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Regular Meeting Minutes dated October 14, 2014 Motion carried. Voting Yes: Chairperson Backous, Commissioners Riley, Tossey, Johns, Kuzma, and LeTourneau. Voting No: None. Absent: Commissioner Strommen. 5. HRA BUSINESS 5.01: Consider Purchase Agreement for 6710 Highway 10 Asst. City Administrator /Economic Development Manager Brama reviewed the staff report and terms of a purchase agreement from MDBNK, LLC in the amount of $170,000 for 1.23 acres of Housing and Redevelopment -owned land located at 6710 Highway 10 to operate its All Season Garage Door Company. Asst. City Administrator /Economic Development Manager Brama described the business of All Seasons Garage Door Company, founded in 1978, with 23 full -time ($17- $23/hour) employees, that needs room to expand and is looking for Highway 10 visibility. He stated the proposed site was purchased in 2013 for $361,000 with Anoka County HRA levied dollars to ensure removal of an undesired grandfathered' adult use as well as a blighted building, to improve the image of Highway 10 and the community, and to promote redevelopment. Asst. City Administrator/Economic Development Manager Brama presented the proposed 5,500 square foot facility and indicated the design and site plan will be completed once a purchase agreement is in place. In addition to the existing 23 employees, three to five new employees will be added in two years. It is estimated this project will bring $26,200 annually in tax dollars. Asst. City Administrator /Economic Development Manager Brama presented alternatives for the HRA's consideration to accept the proposed purchase agreement, renegotiate the proposed purchase agreement, or reject the proposed purchase agreement. It was noted the justification for an offer of $170,000 was based on no tax incentives being requested, knowing that access from Highway 10 will be eliminated, and there will be loss of useable space because an off -site stormwater infrastructure is not available. Mark Northfield, All Season Garage Door Company, stated his father started this business, which is currently located on Coon Rapids Boulevard but there is need to expand. He stated he has always looked at Highway 10 as a great place to grow and that Ramsey would be a great community in which to locate. Commissioner Tossey stated he supports consideration of this purchase agreement, as he believes it reflects the real value of the property. In addition, he thinks this would be a great business to have in Ramsey. Commissioner LeTourneau agreed, noting the original goal for which this property was purchased, redevelopment, will be accomplished. He stated a purchase agreement has been presented and will result in tax payment into perpetuity which, at some point, will result in a net gain. In addition, it will be an asset to bring 23 employees with potential to grow, continue the tax base, and support of retail businesses. Housing and Redevelopment Authority / October 28, 2014 Page 2 of 4