Agenda - Economic Development Authority - 04/13/2017

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March 21", 2017 Mr. Patrick Brama Economic Development Manager/Assistant City Administrator 7550 Sunwood Dr NW Ramsey, MN 55330 Mr, Brama, As you know, during the last several months PSD has been working on a concept model which would establish an industrial park within the City of Ramsey. This concept is based on a multi phased project, when at full capacity, would allow for the construction of 7 new buildings (based on six at 60,000 sq. ft. and one at 52,000 sq. ft.). At this point we have incurred costs for site design, soil borings, fill calculations and have received multiple budgetary construction estimates. The total number of buildings may decrease if demand shows that we need to erect less quantity of buildings with larger square footages. On March 161h, a non-binding LOI has been agreed mutually upon and executed between PSD and the current property owner. The current property owner will continue to own and market the adjacent parcels next to the industrial park that we are proposing to develop. Building construction for the 1' phase PSD built a pro-forma for said project which utilized some assumptions, which are: • The proposed 1'phase will need to utilize TIF funding for the following reasons: o The current site is vacant, by changing the use and type, we expect to have a high vacancy rate until commercial brokers are knowledgeable about our finished project. Initially,we feel it will be hard to change the traffic patterns of potential tenants. o We propose to incorporate aesthetic qualities not typically found in industrial buildings. On the 1St phase,we plan to use a glass curtain storefront on the exterior wall that faces Hwy 10. All bays will have both drive in doors, as well as, loading docks with levelers. Other building owners that lease industrial space frequently need to change the type of loading door access depending on type of business that chose to lease space within the building. By incorporating both types of doors,there will be less disturbance to businesses that locate within the building, as well as,the space will be more desirable to prospective tenants. o Currently there are not any 24' clear height buildings available in the close surrounding areas. New racking and storage methods use higher racking,which increases the efficiency of storage within a 24' clear height building. Unfortunately, the price increases exponentially as the building becomes taller. We plan to build a building that will not be obsolete prior to its opening. By incorporating the 7533 Sunwood Drive,Suite 315 above described items,we feel this building will be more desirable than a"typical" industrial Ramsey,MN 55303 building with less features. Without utilizing TIF funds,the lack of return on investment does Phone: (763)427-5955 not make it feasible to move forward. Fax: (763)427-4151 www.psdianddevelopment.com