Agenda - Council - 04/25/2017 - Laserfiche WebLink

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.This project must be underwritten and must meet Ramsey's business subsidy policies. The PSD LLC request must be justified and must meet State Statute. PSD LLC must demonstrate that "but-for"this assistance,they cannot move forward with this project. Staff will be working will Ehlers to underwrite PSD LLC financials/ project pro-forma. The outcome of underwriting this project will determine if, and how much, city subsidy is justified. .The City does not need to take on this project(i.e.provide a business subsidy). The City could wait for the market to naturally develop the new business park. By taking on this project,we are associating the City with a speculative development. In the event the PSD LLC project isn't successful (i.e.the economy takes a bad turn), it would look unfavorable for the City, and will likely result in opposition from tax payers. .By dedicating TIF funding to this project,the City is losing the opportunity to use said funding on other projects. However,but for this subsidy,the project would likely not happen at all. Funding Source: New 9-year TIF District(TIF#16), existing TIF District(TIF#1), and$10,000 fee from PSD LLC. Recommendation: Staff is comfortable accepting the PSD LLC business subsidy request application. Staff believes this request needs to be underwritten and checked against our policies. Staff believes the request made by PSD, from a preliminary/ high-level perspective, appears to be reasonable for the City to further consider. NOTE: as mentioned in the background section of this case,the PSD LLC business subsidy request will require the City make an exception to our business subsidy policy, related to the creation of new jobs. EDA Review .The EDA reviewed this case on 04/13. The EDA did not have a detailed discussion. .The EDA was generally supportive of accepting the attached application and calling for a public hearing. .The EDA was generally excited for this project, and was generally comfortable with the proposal from PSD (from a preliminary perspective), and desires to find a reasonable solution to push this project forward. .The EDA is interested in the results from the financial underwriting process (from Ehlers). Action: MOTION TO: Adopt Resolution#17-04-091,to call for a public hearing on June 27, 2017,to modify Development District#1,to establish TIF District 416 (PSD Business Park A), and to adopt a TIF Plan. -and- Direct Staff to formally accept a business subsidy application from PSD LLC and complete underwriting in preparation of the June 27, 2017 public hearing. Attachments PSD Proposal Resolution 17 04 091 Process Schedule PSD Subsidy Narrative PSD Cover Letter TIF Run TIF Background City Subsidy Policy