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Motion carried. Voting Yes: Chairperson Steffen, Members Hardin, Kuzma, Kanaventi, and <br /> Riley. Voting No: None. Absent: Members Berg and Burandt. <br /> 4. EDA BUSINESS <br /> 4.01: Consider Recommendation to Establish TIF District 17, Adopt TIF Plan and <br /> Approve TIF Agreement for Delta Mod Tech; Case of SLP EX, LLC and AMP EX <br /> LLC <br /> Economic Development Manager Sullivan presented the staff report. <br /> Jason Aarsvold, Ehlers, stated that he worked with the Developer and City to determine the <br /> amount of TIF that could be available for this project. He noted that the original assistance <br /> request was for $1,500,000. Based on negotiations with the Developer, the amount of$972,000 <br /> is being brought forth for consideration by the EDA. He noted that the provision TIF was a <br /> deciding factor in selecting this site in Ramsey, compared to sites reviewed in other <br /> communities. He indicated that the analysis conducted by Ehler's meets the "But For" test. He <br /> provided details on the cash on cost analysis that was completed, noting that generally he would <br /> like to see seven to nine percent within this industry. He noted that with the $972,000 in <br /> assistance the rate would be rate of return of 8.42 percent and falls within the suggested range. <br /> He stated that providing this assistance will help facilitate the project on this site and would not <br /> unduly enrich the applicant. <br /> Chairperson Steffen stated that this seems to be three tenths of a percent annually and asked if <br /> that would be enough to "move the needle" for a business. <br /> Mr. Aarsvold stated that for a business this can help level the playing field in choosing between <br /> this site and a site in another community. <br /> Chairperson Steffen noted that a statement was made that the applicant would not have chosen <br /> this site but for the TIF and asked for additional details. <br /> Mr. Aarsvold noted that the incentive was the driving factor in choosing this site over sites in <br /> other communities. <br /> Chairperson Steffen referenced the plat, which shows additional pads and asked for details. <br /> Community Development Director Gladhill stated that would be future development by the <br /> ownership group. He noted that ultimately Delta Mod Tech would be a tenant from the two <br /> investment companies. <br /> Chairperson Steffen asked if a future expansion for Delta Mod Tech would be connected to the <br /> building or it would occur to the north. <br /> Evan Schiebout stated that they have built in the ability to expand office and manufacturing onto <br /> the proposed 210,000 square foot building to the east. He provided details on the expansions that <br /> Economic Development Authority/June 13, 2019 <br /> Page 2 of 7 <br />