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CITY FUNDING OPTIONS— three general options exist for the City of Ramsey when considering funding <br />arterial infrastructure: (1) utilizing existing fund balances, (2) an inter -fund loan, and (3) bonding. Choosing a <br />funding source depends on a handful of factors, including: opportunity costs, forecasting fund balances, time - <br />value -of -money, market conditions, organizational goals/ plans, budget constraints, etc. <br />TIMING— three general options existing for when arterial infrastructure should be installed: (1) all or a <br />majority upfront, (2) in phases based on market demand, and (3) 100% based on market demand, likely in <br />smaller individual pieces. Installing infrastructure upfront increases competitiveness and ability to market <br />land. However, anytime infrastructure is installed ahead of development, a large amount of risk is being taken <br />on by the investor. <br />Please review Economic Development Analysis FINDINGS REPORT for details on the arterial infrastructure options <br />outlined above; including a dashboard of existing city funds. <br />Property Ownership <br />Historically, the city has not taken a major stake in business park property ownership. The city has played a major role <br />in partnering with business park land owners (often times called a public-private partnership). The city added value by <br />utilizing redevelopment TIF districts to subsidize the cost of land and cover the cost of public infrastructure for new <br />businesses (often times, upfront in anticipation of development). For a number of reasons (TIF law changes, fiscal <br />disparities program, and geographic location of the new business park), it is unlikely the city can participate at the level <br />it has in the past. <br />Moving forward, the city has four general options to consider when analyzing property ownership: (1) city purchase <br />property, (2) city attain an option agreement to purchase property, (3) city play no role in owning land, and (4) city <br />consider a formal public-private partnership (similar to our past practice). City purchase of land can increase <br />competitiveness and ability to market the future business park. However, anytime the city purchases land ahead of <br />development, some amount of risk is being undertaken. <br />Please review Economic Development Analysis FINDINGS REPORT for details on the property ownership options <br />outlined above; including a dashboard of existing city funds. <br />Frequently Asked Questions <br />Included in the Economic Development Analysis FINDINGS REPORT is a list of frequently asked questions and answers. <br />Below are the questions: <br />1. How has the city paid for public infrastructure in the past, is there a policy? <br />2. How do other cities fund arterial infrastructure to new business parks/ retail areas? <br />3. Why don't property owners simply pay for everything—all arterial infrastructure? <br />4. What can't land owners simply take less for the land? <br />5. Who will pay for non -arterial public infrastructure? <br />Page 8of 12 <br />