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the project <br />• The City of Ramsey will retain 40% of the TIF generated to help pay for future improvements to Bunker <br />Lake Boulevard adjacent to the site and/or other eligible costs. <br />• The City of Ramsey is seeking retail and restaurant users. Common feedback from the development <br />community and prospects is that Ramsey needs to improve it demographics in order attract these users. <br />Ramsey can do that by increasing both population (rooftops) and increasing trip generation (i.e. large <br />employers and destination users). The development of Bunker Lake Industrial Park helps improve <br />demographics needed by retail and restaurant users (via new vehicle trip generation and increased daytime <br />populations). <br />Further Analysis <br />• This business subsidy request has been reviewed and meets Ramsey's business subsidy policy criteria. <br />• The Developer's request for $1,172,000 is justified and meets State of Minnesota Business Subsidy Statutes. <br />• Staff has contracted with Ehler's to conduct a third party analysis of the project and to evaluate if the project <br />meets the "But For" test and it has been determined that this project meets that criteria. Findings satisfying <br />this "But -For" test can be found within the attached Ehlers Memo dated June 30, 2021 and he TIF Plan. <br />• Projected cash on cost return on investment for the Developer is 6.72% which falls within the industry <br />standard of 6.5-7%. the analysis by Ehlers concludes that the $1,172,000 in proposed City assistance does not <br />unduly enrich the company. <br />Funding Source: <br />The Developer has provided $10,000 for the TIF Application Fee and to help cover the costs for the creation of the <br />TIF District and TIF Plan. Additional costs for administration of the TIF District will be paid from revenue <br />generated by the TIF District. <br />Recommendation: <br />Staff recommends that the City Council approve the following items: <br />• Approving the Modification to the Development Program for Development District No. 1 <br />• Establishing Tax Increment Financing District No. 18: (Oppidan Industrial) within Development District No. <br />1 <br />• Approving the Tax Increment Financing Plan. The TIF plan outlines the, boundary of the district, TIF eligible <br />expenses/costs and tax impacts (tax base and taxing jurisdictions). The TIF Plan outlines how the project <br />follows statutory requirements for creation of the TIF District. <br />• Approval of TIF Agreement (business subsidy) with Ramsey Industrial Owner LLC and Oppidan <br />Incorporated; subject to attorney review. <br />The Planning Commission reviewed the project from a Planning/Zoning perspective. Consensus of the Planning <br />Commission was positive, and recommended moving forward to official Site Plan Review for compliance with the <br />Comprehensive Plan and Zoning Code. <br />Action: <br />Motion to recommend to the City Council: <br />• Approving the Modification to the Development Program for Development District No. 1 <br />• Establishing Tax Increment Financing District No. 18: (Oppidan Industrial) within Development District No. <br />1 <br />• Approving the Tax Increment Financing Plan. The TIF plan outlines the, boundary of the district, TIF eligible <br />expenses/costs and tax impacts (tax base and taxing jurisdictions). The TIF Plan outlines how the project <br />follows statutory requirements for creation of the TIF District. <br />• Approval of TIF Agreement (business subsidy) with Ramsey Industrial Owner LLC and Oppidan <br />Incorporated; subject to attorney review <br />TIF SCHEDULE <br />Attachments <br />