Agenda - Economic Development Authority - 04/13/2017

Home

5. WHO WILL PAY FOR NON-ARTERIAL PUBLIC INFRASTRUCTURE? The request before the city is related to arterial infrastructure. Said arterial infrastructure will serve two large developable areas: (1) a new 115-acre business park, and (2) about 123 acres of residential land—including the roughly 88-acre Capstone residential development. However, in many cases, internal public infrastructure will be required for each development area. RE THE RESIDENTIAL AREA Capstone Homes has indicated they will pay for 100%of all public infrastructure located within their site, which will be a multi-million dollar investment. This is consistent with past practice in the City of Ramsey, and other communities. RE THE BUSINESS PARK AREA First, it should be noted, the ability to predict if/what scope of internal infrastructure will be needed within a business park is very challenging—due to the fact that projects range greatly. For example, from 10,000 sf users (needing 1 acre of land)to 200,000 sf users (needing 22 acres of land). Depending on what users come forward, the need for internal infrastructure could be minimal—or, it could become a significant need (and cost). Generally, internal public infrastructure within business parks is dealt with on a case-by- case basis, depending on the merits of individual projects. In many cases, Ramsey has been a progressive-minded economic development community, and paid for internal public infrastructure in business park areas (Azurite and 143rd are recent examples). In some cases the city has required the developer pay for internal public infrastructure. Staff believes this item should remain open, and should be dealt with, based on the merits of individually proposed projects. In the even that Ramsey attracts several small individual users, the city may need to discuss/develop a master plan (big picture strategy) on how to deal with internal infrastructure. Page 7 of 8