Agenda - Economic Development Authority - 06/08/2017

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MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into between the City of Ramsey, a Minnesota municipal corporation, ("City") and PSD, LLC., a Minnesota limited liability company ("PSD"). WHEREAS, over 300-acres of green -field land is available for development located northwest of the U.S. Highway 10 and Armstrong Boulevard interchange in the City (the "Armstrong -West Developable Area"); and WHEREAS, the City has an interest in pursuing the development of a new business park in the Armstrong -West Developable Area totaling 131.52 acres in gross size, located on three parcels currently owned by Hageman Holdings, LLC (PIDs: 20-32-25-34-0004, 29-32-25-21-0003, and 29-32-25-12-0003). A new business park can benefit the City by creating well -paying jobs, increasing tax -base, and increasing local consumer spending; and WHEREAS, PSD is under contract to purchase 45.1 acres of the land currently owned by Hageman Holdings LLC., in the Armstrong -West Developable Area. PSD intends to develop a business park with roughly 7-buidlings totaling approximately 420,000 square feet, located on two parcels (PIDs: 29-32-25-12-0003 and 29-32-25-21-0003); and WHEREAS, the development of the PSD business park will require various mass site improvements, with an estimated total cost of $4.24M, including a new 500' internal public roadway, with an estimated cost of $227,000; and WHEREAS, in order for PSD to move forward with their development interests, a mutual understanding of how the public road will be designed, constructed, and paid for is needed; and WHEREAS, PSD has requested that the City fund the 500' internal public roadway that will serve their business park. This roadway is described in Appendices A & B: Bolton & Menk Engineer's Estimate, as Option 2, Phase 1: 40' roadway with an 8' center median, and two 16' travel lanes (12' plus 2' curb reaction distance), with concrete curb and gutter. NOW THEREFORE, the parties agree in principle to the following: 1) The City will reimburse PSD up to $250,000 for the design and construction of the proposed 500' internal public roadway. 2) Payment shall occur within 30 days after final completion of the new 500' internal public roadway, subject to final inspection and approval by the City Engineer. 3) The City will consider the EDA Fund, the Anoka County HRA/ EDA Ramsey Account, and TIF #1 as the potential funding sources for this project. 4) PSD shall be responsible for designing and constructing the new 500' internal public roadway. 5) The new 500' internal public roadway must comply with all City design standards and City ordinances. Page 1 of 4