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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 />