Agenda - Parks and Recreation Commission - 08/09/2018

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not make profit in operation. However, we also recommend the city consider the societal impact of the restaurant incubator; empowering small -businesses owned by women, minority or low-income groups as well as serving the needs of local residents. Additionally, the high median income is a huge asset for Ramsey. It shows the economic stability of the current residents and should be used as an attraction for potential tenants at the restaurant incubator and other related developments. Finally, a huge amount of available land is also an asset for Ramsey. The city should couple this with appropriate policies that smooth the business development initiatives on these tracts of land. The city should also leverage current attraction points around the COR to attract new tenants. During our research, we found several caterers and home -based food businesses located in Ramsey. We think if the city can consolidate these businesses into one incubator space and provide training and supportive services it will likely to help the businesses to save on cost and expand beyond their current capacity. Pricing of the incubator should be in -line with local competitors. This will ensure a steady revenue for the incubator, whether it is non-profit or for -profit. A detailed "price - benefit map" analysis can be very helpful for determining a sustainable price model for the incubator. It is also very important to factor in the services that are being offered in the incubator to cater to the needs of the tenants. Finally, the city needs to consider the funding source of the incubator. We think it is unlikely that a private for -profit company will be interested in operating an incubator, due to low -profit margin. From our survey of nationwide incubators, it appears several incubators located in rural regions are supported by state or federal grants. Additional efforts are needed to identify additional funding sources. Long-term recommendations The population and number of households in Ramsey is going to increase and so will the opportunity/gap in retail and food and dining services. Careful strategic planning is needed to meet the demand of the residents to keep food -related spending within the city. The city should complement the services offered at nearby retail nodes by providing a novel development in Ramsey, such as a food incubator. In the long-term, the city should provide additional support, such as licensing process assistance and business classes, to incubator tenants to encourage the establishment of new restaurants. In addition, the incubator should closely follow the food trends of the country and region and frequently update the food offerings. Ramsey can leverage its unique development opportunity to become a culinary destination in the region. 17