Agenda - Economic Development Authority - 09/01/2016

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dollars in earnest for each 60 day extension. (6) Construction Deadline 01/01/2018 Phase 1 (72,000 sf)and 01/01/2019 (51,840). (7)Removal of Materials The subject property includes stockpiles of con-bit and a large quantity of retaining wall blocks(concrete blocks). The City shall retain ownership of said items, and will remove from the subject property by 90 days after the Effective Date. Funding Source: NA Recommendation: (1) Staff will suggest the attached purchase agreement be discussed in closed session(sale price,and deal terms). Staff will send the EDA a closed session MEMO before the EDA meeting. (2) Staff will suggest the EDA invite Platinum Properties Group to apply for a business subsidy($7,500). This will require the Platinum Property Group pro-forma to be audited/underwritten by Ehlers&Associates. This will tell the City if the requested subsidy can be justified(mathematically and from a market perspective). It should be noted, because this is a spec building, it will not meet job goals outlined in the City's business subsidy policy. However, the policy specifically indicates exceptions can be made, on a case-by-case basis. Due to the significance of this development(estimated at about$9M), the large amount of property taxes that will be paid by this development(about$249K total per year, or), the ancillary effects it will have on economic development for the City of Ramsey(BR&E and business recruitment), recruiting a destination user nearby The COR (will help generate traffic for other desired users in The COR), and the recruitment of a Adrenaline Sports Facility(services desirable by many organizations/residents), staff believes it would be reasonable to consider this project an exception to the job requirements outlined in the City's Business Subsidy Policy. Action: EDA Recommendations: (1) recommendation RE the Purchase Agreement price/terms in closed session. (2)recommendation RE the Business Subsidy Application in open session(does the EDA invite Platinum to apply?). (3) general recommendation RE the proposed project(what do you think of the user, the project, the location, etc.?). Attachments REF MAP Platinum MEMO DRAFT PA(proposed by Platinum) 2008 Business Subsidy Policy EDA Adopted PW Campus Space Needs Analysis (pg 35) Form Review Inbox Reviewed By Date Kurt Ulrich Kathy Schmitz 08/26/2016 10:41 AM Patrick Brama(Originator) Patrick Brama 08/26/2016 10:50 AM Form Started By:Patrick Brama Started On:08/25/2016 08:35 AM Final Approval Date:08/26/2016