Agenda - Economic Development Authority - 06/08/2017

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Economic Development Authority (EDA) Meeting Date: 06/08/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Title: PSD LLC Business Park: Approve MOU Related to New Internal Public Roadway Purpose/Background: ***this case is 1 of 3 cases related to the new PSD business park*** 4. 3. PURPOSE Consider approving the attached Memorandum of Understanding (MOU). The attached MOU indicates the City of Ramsey is willing to fund a not -to -exceed $250,000 for the first phase of required public roadway located within the new PSD business park. The City would utilize the EDA Fund, ACHRA Fund, and/or TIF District #1 Funds for this project. BACKGROUND Attached to this case is background information on the proposed PSD Business Park (basic background, maps, and visual renderings). Also attached is a breakdown of the assistance requests made by PSD to the City. Lastly, attached is a QA Log on the City's policy for cost -sharing public infrastructure. The EDA and City Council generally reviewed this request in April. At the time, both the EDA and City Council appeared to be generally open to further considering this request. Notification: Observations/Alternatives: Per the attached MOU (appendix) --the proposed internal public roadway will be about 1,200' lineal feet. The entire 1,200' roadway section shown will be constructed by PSD in 2017. PSD is requesting reimbursement from the City for 500' of the internal public roadway (or about 42% of the total lineal feet). Per the attached Infrastructure Policy QA Log --staff believes this request is reasonable, and falls within the City's past practice/ policy positions. In summary, in the past, the City typically has paid for all (100%) or a portion (60%) of public infrastructure located within industrial parks/ commercial areas. Staff discussed this request with Ehlers. Both staff and Ehlers do not believe this request should be processed as a formal business subsidy request. This request should be considered a stand alone infrastructure negotiation process (which is common for new green -field projects, especially for commercial/ industrial projects). As a result, this request has not been formally underwritten and staff has not requested a pro -forma from the developer. Funding Source: EDA Fund, ACHRA Fund, and/or TIF 1. If the project continues to move forward, staff will need to formalize this item. Recommendation: