Agenda - Economic Development Authority - 11/05/2015

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Economic Development Authority (EDA) Meeting Date: 11/05/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Title: Check in on EDA Workplan Item: 167/Highway 47 4. 2. Purpose/Background: PURPOSE The EDA workplan includes a goal related to the 167th Avenue/ Minnesota Highway 47 commercial area (167/47 Node). Specifically, to consider the creation of a special, EDA funded, grant program to encourage re -investment in this commercial node. At this point, the grant program is a general idea/ concept --no specifications exist. Examples include: a storefront improvement matching grant. For example, the City could match property owners up to $25, 000 for improvements to the facade or grounds of their property (i.e. up to a $50,000 project per property --$25,000 from the City). The 167/47 Node consists of 4-6 property owners. The funding source for this program could be the EDA revolving loan fund (about $290, 000 balance). The City's current policies for this fund would need to be amended. The outcome of this program would be enticing /maximizing private investment in the 167/47 Node. The goal would be to improve the view -shed (appearance) of this commercial area. Subsequently, this effort may improve the marketability of this node to prospect tenants/ and customers. BACKGROUND As the EDA well knows, the Great Recession was responsible for the failure of many businesses/ developments across the Country in the late 2000's and into the early 2010's. Retail was hit especially hard. One specific area in Ramsey that struggled to remain viable during the Great Recession was the 167/47 Node. The 167/47 Node experienced high tenant vacancy rates, and turnover of property owners. The City received a flurry of inquiries and requests from businesses/ property owners located in the 167/47 Node from 2011-2014. Typically, requests included some form of City financial assistance. In response to the situation outline above, the City completed an in-depth public/ business/ property owner input process for this node (known as a Statement of Goals --attached). This document outlined the City's position on a handful of policy items. One of those items was: a potential grant program (as described in the purpose section of this case). Notification: Observations/Alternatives: