Laserfiche WebLink
BACKGROUND (Why would Ramsey consider incentives?) <br />This project enhances the City of Ramsey's economic base by securing the operation of a Fortune 500 company's <br />manufacturing facility within Ramsey, Minnesota for the foreseeable future. The Life Fitness facility currently <br />generates significant property taxes (about $150,000 annually) and significant jobs (greatest number of jobs in <br />Ramsey, about 300 FT and about 100 PT. Life Fitness is nearly out of space to grow on their existing site in <br />Ramsey. <br />By completing the currently proposed project, the City of Ramsey will see significant tax base and job growth into <br />the foreseeable future (Expansion #1 and Expansion #2). Additionally, the City would see the removal of a blighted <br />and vacant building located on highly visible intersection. This effort accomplishes the Ramsey EDA's three major <br />goals: job creation (26+ plus jobs over two years), tax base creation ($73,873 total property taxes, Expansion #1 <br />only), and improvement to the quality -of -life within our community (removal of a blighted building). <br />By not completing this project, it would be logical for Life Fitness to consider a new, long-term, location for their <br />manufacturing facility. Additionally, the Health Quest property would likely remain in its current state for the <br />foreseeable future <br />Notification: <br />NA <br />Observations/Alternatives: <br />Attached: <br />Concept Map <br />Business Subsidy/TIF Application (City of Ramsey) <br />TIF Timeline (Ehlers) <br />TIF Information (League of Minnesota Cities) <br />TIF Information (State Statute) <br />TIF Run (Ehlers) <br />Job Creation Fund Application (DEED) <br />Cover Letter (Life Fitness) <br />Business Subsidy Policy <br />Business Subsidy Test <br />Resolution Calling for Public Hearing to Modify Development District 1, and Creation of TIF District 15 <br />Resolution Supporting an Application to MN DEED on Behalf of Life Fitness for the JCF Program <br />Business Subsidy Policy Review: <br />Staff reviewed the proposed Life Fitness project in the context of the City's adopted "Business Subsidy Policy." <br />Based on State Statute and the City's 2009 adopted Business Subsidy Policy, this project is considered a business <br />subsidy. As a result, a public hearing and annual reporting are required by the State. <br />Funding Source: <br />EDA Professional Services Account <br />Life Fitness Application Fee ($7,500 received) <br />Tax Increment Financing (future increment proceeds, pay -go) <br />State of Minnesota DEED (State allocation) <br />Recommendation: <br />