Agenda - Economic Development Authority - 09/14/2017

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Economic Dev. Mgr./Assistant City Administrator Brama stated that is does not appear that there are any concerns and confirmed the consensus of the EDA to support this project moving forward with a preference for Concept C. 4.02: Maple Investments LLC (dba Sharp & Associates) Purchase Agreements (Portions of this case may be closed to the public) Economic Dev. Mgr/Assistant City Administrator Brama presented the staff report. Councilmember Kuzma asked if there would be exclusivity for the second purchase agreement or whether that would be open to anyone. Economic Dev. Mgr./Assistant City Administrator Brama stated that the property would be tied up similar to any purchase agreement, with the exception being the timing. Councilmember Kuzma asked if there is additional interest built in for the second purchase agreement, like an inflation to support the timing. Dennis Sharp, Sharp and Associates, stated that the proposed separation of the purchase agreements would help the cost of the project. He noted that they are attempting to lower the costs as much as possible. He stated that while this is not a good short-term investment for him, he believes that the long-term return would be beneficial. He stated that he is attempting to lower the costs on the first building as much as possible and the suggestion was made to split the purchase agreement into two. He stated that his tenants are small users and there are requests to build their own buildings. He stated that they have not had a piece of property in Ramsey that has been available for that type of activity and therefore some of their businesses have ended up moving to other nearby communities. He stated that this would allow him to have that space available for additional businesses that want to expand in the future. Acting Chairperson Riley asked if the proposed timeline for the second building fits within the timeline for the developer. Mr. Sharp replied that it is pretty quick but he has had a few interested calls already. He stated that more than likely the proposed timeline would work. Member Hardin asked if there is an estimate of the holding costs for the other piece of land. Economic Dev. Mgr./Assistant City Administrator Brama stated that he would have to look into that, as staff has not contemplated that in the past. He noted that it is City owned land and therefore there would not be taxes. Member Williams asked how much in taxes the City would be giving up in that year delay. Economic Dev. Mgr./Assistant City Administrator Brama stated that he did not have the figures. Economic Development Authority/August 10, 2017 Page 5 of 8