11/03/16 - Laserfiche WebLink

Home

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