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2 <br />11. Cost -Benefit Analysis <br />Does a new business park make economic sense for the City of Ramsey? <br />The cost -benefit analysis should include: <br />1. An estimate of full build out valuations for each of the projected three phases of the business park <br />2. A concept map for entire business park <br />3. Tax base creation calculations for each phase (1, 10, 20, 30 years: show total taxes, show City only taxes) <br />4. Rough job creation estimations <br />5. Ancillary economic benefits (i.e. homeownership, The COR, retail, professional services, recirculation of <br />dollars, biz retention, development fees to be collected by City that can help park and trail system, etc.) <br />111. Alternatives And Recommendations <br />This research would include recommendations/ strategies for moving forward identifying the benefits and drawbacks of <br />each alternative including: <br />1. Should the City move forward with pursing a new business park? (Does it make sense?) If yes, how should the <br />city proceed? <br />2. Should the city be proactive with constructing arterial infrastructure (i.e. shovel ready)? <br />3. Should the city own land, place an option to purchase land? <br />4. Should the city move forward with phase 1 improvements now (i.e. development unknowns)? <br />5. Timeline to fully develop a business park <br />6. What cost allocation method should be used? <br />7. How much land should be targeted now, and in the future? <br />8. If the City gets involved, what is the funding source? <br />9. What should be the targeted timeline? <br />10. Will the City need or be willing to provide incentives? If so which ones? <br />11. Do any state/ federal/ county funds exist to help? <br />111. Timeline and Cost of Research <br />My estimated time for completing the analysis would be 90 days. The total amount of senior professional staff time <br />allocated to complete the work is estimated to be approximately 170 hours. The hourly billing rate is $175 per hour. <br />Travel expenses would be billed at cost using the prevailing IRS mileage rate. <br />IV. Report Purpose <br />This assignment will be completed with the understanding that the results of our work will be used by the City of <br />Ramsey to evaluate the future demand and feasibility for a new business park. Our research report will be prepared <br />for that purpose and will be subject to the following qualifications: <br />♦ Our report and analysis will be based on estimates, assumptions and other information developed from <br />research of the market, knowledge of the industry and discussions with the client and other communities <br />actively engaged in economic development as well as professional developers. Some assumptions <br />inevitably will not materialize and unanticipated events and circumstances may occur; therefore, actual <br />results achieved may vary from the analysis. <br />♦ Our analysis will not evaluate the effectiveness of the owner of the business park as this issue is yet to be <br />decided. Nor will we be responsible for future marketing efforts and other management actions upon <br />which actual results are dependent unless requested to do so. <br />♦ Our report will be intended solely for the purpose described above and should not be used for any other <br />purpose without our prior written permission. <br />