Agenda - Council - 09/22/2015 - Laserfiche WebLink

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to be awarded. Present Value = $224,000 @ 5% interest over 15 years. Future Value = about $352,000. This agreement was drafted by Ehlers, via Briggs and Morgan. This agreement is was reviewed by Staff, the City Attorney, the City's economic development consultant Mike Mulrooney, and Life Fitness. Attached to this case is a summary of the TIF Agreement; which provides a quick/ clean overview of the document. IMPORTANT UPDATE: This case was reviewed by the EDA on 09/03. Since then, Life Fitness has made a request for two "high-level" items to be adjusted in the attached TIF Agreement. (1) completion of demolition and site clean up of the health quest property should have a deadline of April 30 2016, rather than November 30, 2015. (2) the number of required jobs outlined in the attached agreements be adjusted down to "minimum City policy thresholds" to allow room for contingency, in the event Life's originally stated goals are not met. The proposed change is from a minimum 26 new jobs paying $16.85 per hour to a minimum 14 jobs paying $14.34 per hour. Given the current regional/ State issues related to employee recruitment for manufactures, the Life Finesses desire for a contingency becomes more important. NOTE: Life Fitness has 60 job openings at their Ramsey facility today. They still plan on hiring 26 more employees with this expansion (on top of the current 60 job openings). Lastly, Life Fitness has an agreement with the State ofMinnesota for this project, which requires the creation of 26 jobs (various different wages). In other words, the State has teeth (incentives) in this project that will ensure the 26 proposed jobs are created. Staff believes the two updates (Life Fitness requests) above are reasonable, and justifiable. Staff believes the merits of this project remain. The Staff recommendation included in this case remains the same Notification: NA Observations/Alternatives: NA Funding Source: Tax Increment Financing, pay-as-you-go. Recommendation: STAFF: Staff recommends moving forward with this proposed project; and supporting the motions outlined in this case. **This project enhances the City of Ramsey's economic base by securing the operation of a Fortune 500 company's manufacturing facility within Ramsey for the foreseeable future. The Life Fitness facility currently generates significant property taxes (about $300,000 annually) and significant jobs (greatest number of jobs in Ramsey, about 300 FT and about 100 PT. Life Fitness is nearly out of space to grow on their existing site in Ramsey. **By completing the currently proposed project, the City of Ramsey will see significant tax base and job growth into the foreseeable future (Expansion #1 and Expansion #2). Expansion #1 is expected to generate an additional $70,000 in total annual property taxes, and create at least 26 new jobs. Expansion #2 is expected to generate an additional $70,000 in total annual property taxes and create future new jobs. **With this project, the City would see the removal of a blighted and vacant building located on highly visible intersection.