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MEMORANDUM OF UNDERSTANDING AGREEMENT
<br /> This Memorandum of Understanding Agreement("MOU Agreement")is entered into between the City
<br /> of Ramsey,Minnesota,a Minnesota Municipal Corporation, ("City"), Capstone Homes,Inc.,a
<br /> registered Minnesota domestic business corporation ("Capstone Homes"), and Hageman Holdings,
<br /> LLC, a registered Minnesota limited liability company ("Hageman Holdings").
<br /> WHEREAS,over 300-acres of green-field land is available for development located northwest of
<br /> the U.S.Highway 10/and Armstrong Boulevard Interchange in Ramsey,Minnesota(the
<br /> "Armstrong-West Developable Area"); and
<br /> WHEREAS,the City has interest in pursuing the development of a new business park in the
<br /> Armstrong-West Developable Area totaling 131.52 acres in gross size,located on three parcels
<br /> currently owned by Hageman Holdings(PIDs: 20-32-25-34-0004,29-32-25-21-0003, and 29-32-
<br /> 25-12-0003). A new business park can benefit the City by creating well-paying jobs,an increase
<br /> in tax-base, and an increase in local consumer spending demand; and
<br /> WHEREAS,Capstone Homes has a purchase agreement in place for 84.77 acres of land
<br /> currently owned by Pearson Properties of Ramsey,LLC.,located in the Armstrong-West
<br /> Developable Area. Capstone Homes intends to develop a roughly 350-unit single family
<br /> residential development located on three parcels(PIDs: 29-32-25-22-0004,20-32-25-33-0001,
<br /> and 20-32-25-32-0001); and,
<br /> WHEREAS,a new 350-unit residential development located in the Armstrong-West
<br /> Developable Area will benefit the City by providing quality new housing stock, a quality
<br /> designed residential community,development fees,tax-base, and an increase local consumer
<br /> spending demand; and,
<br /> WHEREAS,the development of the Armstrong-West Developable Area will require various
<br /> improvements to arterial infrastructure located along Bunker Lake Boulevard and Puma Street.
<br /> Arterial Infrastructure improvements include trunk-water line extensions,trunk-sewer line
<br /> extensions, a sewer lift station,trail extensions,new roads, street lights, and storm sewer
<br /> ("Arterial Infrastructure"). Bolton&Menk,Inc. completed a conceptual feasibility analysis for
<br /> Arterial Infrastructure located in the Armstrong-West Developable Area on March,XX,2017
<br /> ("Infrastructure Study"); and
<br /> WHEREAS,Arterial Infrastructure will not only directly serve the Armstrong-West Developable
<br /> Area,but will also serve the City as a whole. The proposed Arterial Infrastructure includes City
<br /> trunk water/sewer system lines, a Municipal-State-Aid(MSA)road route, and a collector road;
<br /> and
<br /> WHEREAS,in order for Capstone Homes or the City of Ramsey to move forward with their
<br /> development interests, a mutual understanding of how Arterial Infrastructure improvements will
<br /> be designed,constructed, assessed, and paid-for is needed; and
<br /> WHEREAS, Capstone Homes has requested that the City fund the Arterial Infrastructure
<br /> improvements upfront and assess their portion of the Arterial Infrastructure improvements for
<br /> Phase IA and Phase 1B outlined in the Bolton&Menk Infrastructure Study. Assessing costs for
<br /> improvements back to Capstone Homes will require City compliance with applicable State
<br /> Statutes, including Chapter 429.
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