Agenda - Economic Development Authority - 08/12/2021

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TIF is required to provide economic assistance to allow for the owner to make a minimum return on their investment. As demonstrated with the attached proforma, the project currently creates a 6.00% return on the investment. Typically Industrial projects require a 6.75% - 7.54% return for projects built within a primary market. The returns for this project in this market are lower due to increased costs of construction, increasing costs of labor, and lower rents for the Ramsey, MN market. Generally the overall costs have increased with a decrease of NOI. We still feel that the Ramsey market will benefit from having a state of the art Industrial office park and thus we are looking to work with the city to provide up to $1.2M (Ehlers to Opine) of TIF assistance which would get us close to an acceptable return. We are very enthused about the demand but concerned about the economics that the current market conditions present. The jobs created with this development are unknown at this point. However, we are comfortable assuming 100-150 jobs will be at the level of $17.45 or greater. We feel this is a reasonable goal to achieve and quite frankly would be surprised if that does exceed this number by a longshot. Part 5 - List of prospective Lessees The leasing process will not begin until the full development is approved via the City process, however the Market Report from CBRE confirms that there is demand and interest in the Ramsey market for Industrial users. Part 6 — Legal Description and PID Numbers, maps of the project area and project renderings Lot 2 Block 1, Amsterdam Extension PID — 20-32-25-43-0005 Part 7 — Public Purpose Narrative Oppidan's Industrial project on Bunker Lake Blvd in Ramsey will provide jobs, infrastructure, a growing tax base, public trail system, and use of public utilities within Ramsey. This proposed project will create jobs during construction and even better create long term jobs in the area allowing those employees to shop in around the greater Ramsey area for goods and services. The City of Ramsey has invested in the roadways and infrastructure for these types of uses and this type of development is good for the City.