Agenda - Economic Development Authority - 04/13/2017

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• Request#2,the City repay the cost of the interior artery road. PSD, as well as the City,would like the project as dense as possible due to the following reasons: 1. A higher density can be achieved, we are able to spread the infrastructure costs (curb, storm, signage,water/sewer main extension and central ponding) across 7 buildings vs. 6 and make it feasible. Without this extra $250,000,the improved cost of the land becomes too high and the project is not viable. 2. The appearance, by having the first 2 phases front Hwy 10 it will set the tone and these buildings will be highly desirable. The success of the industrial park hinges on how the project is first received. If an arterial road is not provided, the buildings would "piano key" along Bunker Lake Blvd, which prospective tenants may not know these buildings are available, or what type of businesses will be located within them. 3. The success of tenants is key to having visibility from Hwy 10. Some tenants may choose to locate there given the visibility to Hwy 10, especially in a retail/warehouse combination type of business. 4. It will clean up blight, much of this area is wasteland of dirt pile and garbage, and there have been gypsies actually living in the trees and brush. This cleanup will raise the image of the City of Ramsey and the area that fronts Hwy 10. As you will see in the attached proforma, the margins generated do not afford the ability to absorb $250,000 for the arterial roadway into the project. In order to set the tone and have the building properly front Hwy 10, the first two phases need to be located as close to Hwy 10 as possible. This project cannot move ahead with the current returns if the road has to be paid by the developer, "but- for". having the City repay the cost of the road will insure this building will be highly visible and tenants will wish to locate(or relocate) their business in Ramsey with will provide jobs to Ramsey residents, traffic for neighboring developments (The COR) and raise the image along Hwy 10. In conclusion: Being a business owner in Ramsey for many years and talking with many real estate experts, there is glaring need for additional industrial buildings in the City of Ramsey. We would like to think that we can bring a great quality building to this City, which has been evident form our past projects. This industrial park is a gamble on our part, we will be holding land and incurring holding costs, investing money into a parcel which its land use has recently changes, as well as, building a spec building with not one lease signed yet. We are not asking the City to backstop unrented spaces, grant real estate tax exemptions, reduce or eliminate the SAC, park or trail fees, the project just needs a little help to get its traffic flow started and make people aware that this is a viable business park. We strongly feel that this will add options for the City of Ramsey and you will be able to locate businesses within this industrial park. The amount we are requesting has very few variables, almost all of the gamble rests on our shoulders. By investing City funds into this new venture, we will partner together and help Ramsey grow, for this business as well as many others. Thank you in advance for your consideration of granting these two requests, we know it will be an asset to both the City and PSD.