Agenda - Economic Development Authority - 01/12/2017

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(1) Stone Brook Feedback A. This is the#1 desired site for Stone Brook(the buyer/owner) o Stone Brook has reviewed all available site locations in The COR on multiple occasions,over the past six months. This includes reviewing sites with developers,architects, banks,and walking sites. Stone Brook wants to purchase this property now(purchase agreement). They have been saving for the past two plus years—and are very interested in this specific site. They desire to begin construction in early summer 2017. o Look/feel/vision are very important to Stone Brook. This site(in the central part of The COR) meets the vision of Stone Brook. They want a high-class, high-tech, high-amenity,well- respected, nice looking academy,that fronts Sunwood Drive,and fits in WELL with the surrounding area—which they believe is the center of The COR. This facility will be much more of a state-of-the-art children's academy, rather than simply just a daycare center. This will be an asset/destination for this community. o Stone Brook believes in the City's vision of The COR—and they are drawn to this specific site. They believe the heart of The COR is where family oriented uses/destination uses are best located—like academy's,community centers,theaters,train stations, municipal, parks,etc. (details in location section below). o Stone Brook believes destination users, located in the center of The COR,will produce significant ADT for The COR(in this particular case--140 children/parents, nearly 20 employees 2x per day), which will help Ramsey achieve it's retail goals(especially on the west end). B. Location is ideal for Stone Brook o Being located in the center of The COR,versus on one end or the other, provides better ability for Stone Brook to evenly pull from Ramsey's major population areas(north and east of Ramsey Boulevard),and also to pull from future developable areas(west of new Armstrong interchange). o Being located in the center of The COR allows Stone Brook to draw from nearby dense housing— including apartments,townhomes, and other residential developments within The COR—as a result, in many cases,this location may be walkable. Being located in the center of The COR may also attract people using the Northstar Commuter Rail. o Stone Brook believes being located on Sunwood Drive, in the center of The COR, is important for fit/feel/safety of the academy. Traffic flow(ease of access, congestion)and nearby users impact the perceived safety/fit of their facility. Stone Brook believes being located on either end of The COR detracts from these principles. C. Price is very important, and is ideal at this particular location. o Stone Brook is a quasi-start-up business(being modeled after Prestmore Academy in Florida, their parents started that group,and are mentoring Stone Brook). This business requires a lot of FFE (furniture fixtures and equipment),a lot of employees,several licenses, and significant working capital. As a result,Stone Brook will need to come up with significant equity to make this deal happen,and to fund their operations for the first year. The price of land will have a direct impact on the operations of this business(i.e.cash flow),and is very important to Stone Brook. They want to be below$3 psf. o This type of business,a high-end children's academy, is not commonly seen in Anoka County, if at all (however, is common in Hennepin County for example). It is critically important,to the Page 3 of 16