Minutes - Economic Development Authority - 03/05/2015

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Economic Development Manager /Assistant City Administrator Brama updated the EDA on the revolving loan fund, Anoka County program open to cities that helps out small businesses starting out and helps with micro loans and provides a lot of expertise staff does not have in house. He thought this will be valuable to Ramsey businesses. He also updated the Board on the RALF and Armstrong City owned properties and purchase agreements currently being negotiated. Member Williams stated if the purchase agreement does not have a sunset agreement and the proposed buyer does not sign it, then this was something they should consider as they are revising and choosing a standard and she also thought they should, as a group, encourage Economic Development Manager /Assistant City Administrator Brama to use his discretion and to require a certain amount of due diligence on a prospect before he spends an abundance of time working with them. This would be the second purchase agreement Economic Development Manager /Assistant City Administrator Brama has negotiated that the potential buyer was surprised by the cost. She indicated she was surprised by the lack of due diligence on the prospect's part. She thought it would be important to throw some support behind managing Economic Development Manager /Assistant City Administrator Brama's time in that way because they do not want to discourage prospects like this and do not want to discourage him from working with the prospects but they need to be respectful that he is not an important first step in the due diligence process and they need to rely on their buyers to be sophisticated buyers and do some research. Chairperson Steffen wondered what could Economic Development Manager /Assistant City Administrator Brama have done differently in regards to due diligence. Economic Development Manager /Assistant City Administrator Brama stated the verbal check took place with both prospects. Member Williams asked if they came with concept site plans because one of the things they require at the railroad is they have to be engineer stamped before they will negotiate anything. She did not know if there is an equivalent to that. She thought there were red flags that were known with both prospects. Economic Development Manager /Assistant City Administrator Brama stated he will do some brainstorming and bring this back to the Board. Member Riley thought the direction was good. Chairperson Steffen asked if the prospect could have a right of first refusal document and still market the land to others. Member Williams thought maybe there could be a letter of intent. 6. ADJOURNMENT Motion by Member Steffen, seconded by Member Riley, to adjourn the meeting. Economic Development Authority/March 5, 2015 Page 5 of 6