Minutes - Council - 08/11/2015 - Laserfiche WebLink

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City Engineer Westby reported that this contractor completed the Center Street improvements and the City has a great working relationship with the contractor. Motion by Councilmember Kuzma, seconded by Councilmember Williams, to Adopt Resolution #15-08-194 Accepting Bids and Awarding Contract for Ridgepoint Residential Development Improvements, Motion carried. Voting Yes: Mayor Strommen, Councilmembers Kuzma, Williams, Johns, LeTourneau, Riley, and Shryock. Voting No: None. Randy Diers, Village Bank, thanked the Council for their cooperation and thanked the City, specifically City Engineer Westby and Community Development Director Gladhill, for their assistance. He stated that the bank believes that this project will move forward quickly. 7.05: Consider Multiple Actions Related to a Potential Life Fitness Expansion and Redevelopment Project Mayor Strommen recused herself from this discussion as her husband works in the Engineering department of Life Fitness. She stated that her husband is not associated with this project but she would still be recusing herself to avoid any perceived conflict. Acting Mayor LeTourneau presided over the meeting. Asst. City Administrator/Economic Development Manager Patrick Brama reviewed the staff report to consider multiple actions related to a potential Life Fitness expansion and redevelopment project on the previous Health Quest site. He reviewed the recommendation to adopt Resolution #15-08-201, adopt Resolution #15-08-202, direct staff to accept a business subsidy application from Life Fitness and begin underwriting, and execute the LHB Contract for State required TIF District analysis; subject to review and amendments by the City Attorney. Mike Mulrooney, ACG, provided additional information on the issue of business subsidy and stated that the City does have a business subsidy policy. He provided clarification regarding Tax Increment Financing and the business subsidy request. He stated that the Health Quest property has been in its current condition and has been listed for sale since 2004, explaining that some developers are not interested in the site because of the redevelopment cost, specifically in regard to the geothermal wells. He stated that unless there is some type of assistance in regard to those project costs it is believed that any project would not move forward on the site. He stated that Life Fitness is a very strong company and plans to finance this expansion project internally and; therefore, there is a strong belief that this project would move forward. He stated that the State is interested in providing financing for this project as this is a well-respected company that employs a number of people in Minnesota. He stated that the City is asked to support the job creation fund application. Councilmember Riley stated the EDA also discussed this item and stated that this property is a gateway property to the City, which has not put the proper face on Ramsey. He stated that in order to utilize this property, a blighted building would need to be removed and 90 wells would City Council / August 11, 2015 Page 6 of 10