Laserfiche WebLink
PSD LLC has competed and submitted a business subsidy application to staff, including a$10,000 non-refundable <br /> fee. Staff and Ehlers are ready to formally process this request(underwriting, establish a new TIF district, draft a <br /> TIF agreement). Attached to this case is the request documentation from PSD LLC. <br /> NOTE: the PSD LLC request will not meet the job creation requirements outlined in the City's official business <br /> subsidy policy, due to the fact this project is a speculative building. Guaranteeing job creation on a speculative <br /> building is very challenging. The PSD LLC subsidy request will require an exception to the City's policy, in order <br /> to be approved. A similar exception was provided to Platinum Properties, for their speculative construction building <br /> proposal, in 2016. <br /> Need more information on TIF? Please see attached LMC TIF background document and the attached mock TIF <br /> run. <br /> Notification: <br /> Observations/Alternatives: <br /> Project Benefits <br /> . Supporting a speculative construction building puts the City of Ramsey in a very competitive position to <br /> attract economic development projects. Often times, communities that win economic development projects <br /> are the "most-ready-to-go-now." <br /> .The proposed building is high-quality and market relevant. It will be one of the nicest industrial buildings in <br /> Ramsey. It will be prominent on Highway 10, and will set a positive image, and create a big splash for the <br /> City's new business park. <br /> .PSD LLC is jump-starting the City's new business park with this project. This is important, as staff <br /> commonly receives feedback from prospects interested in the new business park--that don't want to be the <br /> first-one-in. There is a fear associated with that perspective, as it is considered to be high-risk. Momentum <br /> matters in the development industry. <br /> .The proposed funding sources for the subsidy request are a former TIF district and a new TIF district. <br /> Meaning,this subsidy will not have a direct impact on the general tax levy and Ramsey taxpayers. Also, like <br /> any TIF project,the existing tax base remains in place, 100%. <br /> .The proposed 60,000 sf project will create annual total property tax revenues of$116K. Upon full build out <br /> of the PSD LLC business park(45 acres),the entire PSD LLC development will generate an estimated total <br /> annual property tax of$812K. It should be noted, about 65 acres of additional business park land is located <br /> north of the proposed PSD LLC business park. <br /> .A 60,000 square foot commercial/industrial building will create jobs, it's simply a matter of time, and how <br /> many jobs. Staff estimates,based on past projects in Ramsey, a 60,000 sf building will produce 30-200 jobs, <br /> depending on the end user(s). <br /> .The City of Ramsey is seeking retail and restaurant users. Common feedback from the development <br /> community and prospects is--Ramsey needs to improve their demographics, in order attract these users. <br /> Ramsey can do that by increasing both population(rooftops) and increasing trip generation(i.e. destination <br /> users). This PSD LLC business park will help generate demographics needed by prospect retail and <br /> restaurant users (via new vehicle trip generation). <br /> Project Considerations <br /> .This project must be underwritten and must meet Ramsey's business subsidy policies. The PSD LLC request <br />