Agenda - Economic Development Authority - 10/06/2016

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PURPOSE OF CASE To provide an update—and to allow the EDA time to develop questions/get more information. Below is a summary of important facts. With these in mind, the City will need to make a decision RE the Pearson Property/future business park in the coming months (November). • Pearson Properties wants out of the new Ramsey Business Park. • Right of first refusal for Pearson Property ends on 12/14/2016. PA executed with Capstone Homes on 10/10, City now has until 11/16 to act--$1,465,501 purchase. • No private sector developers showed interest in purchasing the Pearson Property for a business park. • PACT Charter is unable to close a purchase in the next 18 months on the Hageman Holdings site. • City seems to have a short term solution for business park needs now (2-7 years). Staff would like to note, we are following up on the leads: • Connexus Energy's 17-acre shovel ready industrial parcel may become available for an economic development purposes. At this point, discussion RE this opportunity is very speculative. However, it appears Connexus is supportive of the idea—and wants to work with the City to preserve for economic development purposes. • Hageman Holdings may be willing to rezone or sell a portion of the large Legacy Christian Academy site, or develop some sort of partnership, to help the City still achieve their goals for a business park. Finally, here is a snap-shot of industrial land in Ramsey(not counting the Pearson Property). In summary, staff believes we are in a reasonable position to respond to prospects in the short term (next 2-7 years). • 1 acre city-owned parcel in original business park—just north of Ace Solid Waste. Generally, good site with no major issues, outside of its limited size. • 8-acre city-owned parcel in the original business park—former BA Cylinder site off of Ramsey Blvd,just north of the train tracks. Generally good site—however, is against train tracks which is undesirable, mediocre access, odd-shaped site, and will require about$300K of arterial infrastructure improvements. • 9.3 acres of city-owned parcel become available just north of the former public works campus in early 2015 (former Bury Carlson site). We are currently negotiating a deal for this land. If the project goes through, said development will serve as a solution for many companies that are looking for space to lease in Ramsey. • "Potential" 17-acre Connexus-owned site located off Sunwood Drive just south of Connexus. Great site, ideal for many reasons—no major issues known. • Hageman Holdings is ready to partner with the city to rezone/sell their 45 acres located in the future business park. About 25 acres of this property is shovel ready today. The two only concerns with this site are: (1) nearby unsightly users, and (2) nobody wants to be the first user in the new business park. Page 5 of 6