Agenda - Council - 05/14/2019 - Laserfiche WebLink

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ready to formally process this request (underwriting, establish a new TIF district, draft a TIF agreement). The application states that this project will bring 125 jobs to Ramsey upon completion of the of construction and opening of the new building. In addition, 20 new jobs will be created within 2 years once they move to Ramsey, paying wages of $22.00 / hr. In total, this project will result in at least 145 new, good paying, jobs being brought to Ramsey. The estimated tax assessed value of the completed project is $11.1 Million Dollars and it is expected to generate between $375,000 in total property taxes annually. Attached to this case is the Business Assistance Application and Policy. Preliminary review of the application and policy indicate that this request meets the criteria necessary to provide financial assistance for this project. More information on TIF is included in the attached LMC TIF background document and the attached mock TIF run Notification: Notification is not required at this time. The purpose of this case is to authorize an official Public Hearing and provide for required notification. Observations/Alternatives: Project Benefits • 145 new jobs for the City of Ramsey. 125 jobs will be retained and relocated to Ramsey by Delta Mod Tech and an additional 20 jobs will be created paying a minimum wage of at least $22.00 / hour. • Opportunity for employment for Ramsey Residents. Delta Mod Tech is a growing company that will be providing employment opportunities for Ramsey Residents. • Payment of required outstanding 2011 and 2017 special assessments for the extension of Bunker Lake Boulevard and City Utilities (Bunker Lake Business Park / Puma Street) attributable to the developed parcel will be made at time of proposed property closing in July 2019. • 19.65 Million Dollar project. • $375,000 in annual property taxes 1.5 years after project is completed. The newly created local tax revenue will be captured by the TIF district for 9 years. When the district is decertified the City can expect to receive around $90,000 annually in property taxes (including fiscal disparities) from this project. • The proposed 185,000 square foot building is high -quality and market relevant. It will be one of the largest industrial buildings in Ramsey and be a significant investment for the City's new business park, the Bunker Lake Industrial Park. • The proposed funding sources for the subsidy request would be from a newly created TIF District 17 Meaning, this subsidy will not have a direct impact on the general tax levy and Ramsey taxpayers. Also, like any TIF project, the existing tax base remains in place, 100%. • The City of Ramsey is seeking retail and restaurant users. Common feedback from the development community and prospects is that Ramsey needs to improve their demographics in order attract these users. Ramsey can do that by increasing both population (rooftops) and increasing trip generation (i.e. large employers and destination users). The development of Bunker Lake Industrial Park will help improve demographics needed by retail and restaurant users (via new vehicle trip generation). Project Considerations • This project must be underwritten and must meet Ramsey's business subsidy policies. The Developer's request must be justified and must meet State Statute. The Developer must demonstrate that "but -for" this assistance, they cannot move forward with this project. Staff will be working with Ehlers to underwrite the Developer's financials/ project pro -forma. The outcome of underwriting this project will determine if, and how much, city subsidy is justified. Funding Source: