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4. EDA BUSINESS <br />4.01: Consider Multiple Actions Related to a Potential Life Fitness Expansion and <br />Redevelopment Project <br />Economic Dev. Mgr/Assistant City Administrator Brama presented the staff report. <br />Mr. Jason Aarsvold, Ehlers and Associates, and Mr. Mike Mulrooney were at the meeting to <br />answer questions. <br />Mr. Mulrooney stated there were a few items to consider as it relates to Ramsey. On the TIF <br />side, they need to determine if there is a public purpose for this type of financing. In this case, <br />they are removing blight within the community and that is key to the test of it being a public <br />purpose. This project meets all of those requirements. Under MN law today, they have to deal <br />with the issue of business subsidy and whether or not this business meets that test. The City of <br />Ramsey has their own business subsidy policy and there are four components they need to look <br />at. One is the "but -for" test and without some form of assistance, no business would undertake <br />that project without help. There are a number of costs incurred that are extraordinary with the <br />property and this does meet the "but -for" test. <br />Mr. Mulrooney stated the second component relates to wages, which must meet paying at least <br />70 percent of the median wage for the Metro Area. The median wage is $20.46/hour, which <br />would mean they would have to pay $14.34/hour for this project and this project will pay over <br />$16.00/hour. This meets the wage policy. The third component is economic feasibility and this <br />company can take on the responsibility. The City does not have any concerns. The last <br />component is whether the business is in compliance with the business subsidy act of MN and this <br />project does meet that test. <br />Chairperson Steffen asked if the blight was not on the piece of land would that take the key <br />ingredient out and not make TIF an option. Mr. Aarsvold stated they chose this type of District <br />because of the situation on the ground out there. They talked about a redevelopment district that <br />required more than fifty percent of the buildings to be considered substandard. But because there <br />are only two buildings, one believed to be substandard, it is not more than fifty percent but the <br />removal and renovation is required at thirty percent of the buildings be substandard. He stated <br />they can create the 16 years of increment because the building is considered substandard. If it <br />did not qualify they could still consider that type of district, only with fewer years of tax <br />increment. <br />Chairperson Steffen asked if they have given any indication when phase two would begin. <br />Economic Dev. Mgr/Assistant City Administrator Brama thought it would be in a year or two. <br />Chairperson Steffen asked if the demolition would occur immediately after purchase. Economic <br />Dev. Mgr/Assistant City Administrator Brama indicated it was their hope to do that. <br />Member Riley asked if the value of the old building would remain even if demolished. Mr. <br />Aarsvold explained how they figure the assessment for the TIF District. He stated even if they <br />Economic Development Authority/July 9, 2015 <br />Page 2 of 6 <br />