Agenda - Economic Development Authority - 01/07/2016

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City of Ramsey Report Summary Elk River The City of Elk River has had recent success with its Natures Edge Business Center. Phase 1 of the Business Park included the acquisition of a site and installation of improvements to create the 75 -acre Nature's Edge Business Center. The first of three phases included the development of sites ranging in size from 1-10 acres. Improvements included two new streets, municipal trunk sewer and water facilities, storm sewer management systems and site grading. The property is zoned light industrial with retail, commercial, light industrial and warehouse use permitted. Located near US Highway 10 and 171st Avenue, the site offers excellent access to US Highways 10 and 169 as well as the Northstar Commuter Rail Station in Elk River. The Elk River Economic Development Authority received a $250,000 grant from the MN Department of Employment and Economic Development through the Business Development Public Infrastructure grant program. The Business Park is nearly fully developed with one site remaining that is approximately 12 acres in size. This site however is privately owned and a price has not been provided. Elk River's Economic Development Authority is now planning to add more space. The original plan was to complete the expansion by 2017, but interest from potential new companies could lead the city to purchase additional land and finish the infrastructure for the addition by next year. Property under consideration for the expansion is agricultural land currently owned by Cargill immediately to the east of the business park. The size of the business park expansion would be approximately 120 acres. Historically Elk River has sold property for approximately $2.00 to $2.50 per square foot. The city has a history of working with Sherburne County to provide Tax Abatement and other resources effectively writing down the cost of the site and improvements for new business. Discussions with city staff indicate that this strategy is likely to continue. Recent additions to the business park included Morrell Transfer. Morrell purchased a 4 -acre lot for the asking price of $2 per square foot or $349,351. GATR's purchased two lots totaling nearly 15 acres at the asking price of $2.25 per square foot or $1,316,695, GATR sells heavy-duty and medium -duty trucks. GATR is planning a new dealership at the Elk River site. Meanwhile, the city also sold two lots totaling 14 acres Sportech. All of these projects have been constructed during 2015.