Minutes - Economic Development Authority - 03/08/2006

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Further discussion: Economic Development Sullivan inquired if the Board would like it communicated to Mr. Youngberg that his lake property would be required as collateral if he would like the loan amount increased to $50,000. The consensus of the Board was that an entirely new presentation would be required to request a loan amount above the $34,000. Economic Development Consultant Mulrooney advised the Revolving Loan Fund will be the last money included in this deal; evidence will be required of funds from the lending institution. Staff will communicate this to Mr. Youngberg. Case #2: Consider Sale of 14050 Basalt St NW to Ace Solid Waste Economic Development Coordinator Sullivan indicated Ace Solid Waste has presented an offer to the City to purchase the property located at 14050 Basalt St NW. The City acquired that property for$315,000 last year and received a grant for the clean-up of the contamination on the site. The City has begun the clean-up process and it should be complete early this summer. Ace has made an offer of$275,000 for the site and it is a reasonable offer. It should be noted that the City acquisition cost included the structure on the property. The funds realized by the sale of the property could be used to acquire additional blighted properties within the CBRA. Mike Berkopec, Ace Solid Waste, stated Ace Solid Waste appreciates what the City has done with this site. Other than the asphalt plant, this is the only piece of property that is adjacent to Ace's property that could potentially be used for expansion. Ace continues to grow, and there are space needs, however, the issue is timing on exactly when the space will be needed and how it will be used. The biggest challenge is disposal and where material will be stored. Mr. Berkopec explained one of the reasons Ace located in Ramsey is because the City allowed them to put in a transfer station. Option 1 would be expand that transfer station. The current agreement with the county will end on August 19, 2009. Ace believes the processing facility will remain open, and clear direction is expected on this issue within two years. Option 2 would be for this land to remain a separate parcel, with a shop constructed on the property to house container repair and truck painting operations. Mr. Berkopec stated it appears this is the time to purchase the property. Ace is proposing to purchase the property for market value as determined jointly; Ace would look at the property for one of these two options, depending on what happens in their business over the next two years. Economic Development Coordinator Sullivan explained this size lot is in high demand in the City. If they were to wait until Ace is ready to do what they want, the site will no longer be available.- Ace is not asking for any TIF assistance with the purchase, which would be requested with any other project on this site. The $275,000 that would be paid for the parcel would be more than enough to acquire other properties in the area. Member Elvig inquired what the City costs currently are on this property. Economic Development Coordinator Sullivan replied the City purchased the site for $315,000; after relocation costs the total cost is approximately $350,000. A $295,000 grant was received from the Metropolitan Council to help clean up the site, which is currently beginning. The grant will be approximately $125,000 short of the clean-up costs. This parcel is located in TIF District No. 2, and funds from this district can be used to clean up the site. There will not be any general Economic Development Authority/March 8, 2006 Page 6 of 9