Agenda - Council Work Session - 01/26/2016

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timing (when Phase 2 & 3 will be constructed), staff has not identified a final specific funding solution for the City's portion of this project. Various potential options exist: G.O. Bond, MSA Bond, Anoka County HRA Account, Landfill Trust Fund, or TIF Districts 1 and 2. If the City were to bond for this specific scenario, Ehlers & Associates would estimate a net annual city debt obligation of about $90,000. Annual city property taxes collections for the larger 350+ acre greenfield development are estimated to exceed the annual $90,000 city debt obligation after three years. LAND PRICES— with inclusion of new arterial infrastructure costs, base land asking prices in the business park will range from $1.74 to $2.45 per square foot. These asking prices do not include the cost of internal public infrastructure (unknown cost), debt service (time value of money/ inflation), change in ownership, etc. Actual final sale price may be higher in Ramsey. Market asking prices for the Ramsey area are $2.00-$3.50 per square foot before, any incentives. Staff believes land prices will remain competitive with this approach. It should be noted, the City of Elk River will be the City of Ramsey's number one competitor in the long run. Elk River has a track record of owning industrial park land and selling land at below market rates. In some cases, Elk River has provided land for $1. Elk River also has a track record of utilizing tax abatement (comparable to TIF). Unlike Ramsey, Elk River does not need to account for fiscal disparities. As a result this specific competition, staff would recommend Ramsey business park asking prices remain at or below $2.50. INCENTIVES—the City of Ramsey has an adopted business subsidy policy which outlines a set of available economic development tools and corresponding criteria/ applications. Historically, the city has awarded incentives to various industrial projects on a case-by-case basis—depending on the merits of each individual project. In order for the City of Ramsey to have success in their new business park, staff recommends the City of Ramsey remain open to considering the use of economic development incentives on a case-by-case basis. LANDUSE—the City of Ramsey completed a community engagement process related to future land uses in the larger 350 acre green -field developable area (which includes the 93 acre business park) in 2013/2014. Upon completion of said public engagement process, the Planning Commission, EDA, and City Council indicated interest in moving forward with appropriate zoning changes for the new future business park area (i.e. Comprehensive Plan Amendment and City Zoning Map Amendment). Staff believes this step is critical as land use regulations set the foundation for future development discussions, opportunities, and realized development product. Regardless of how the City moves forward with the proposed future business park, staff would recommend this step be completed. Page 11 of 12