Agenda - Council - 08/24/2021 - Laserfiche WebLink

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• This business subsidy request has been reviewed and meets Ramsey's business subsidy policy criteria. • The Developer's request for $1,172,000 is justified and meets State of Minnesota Business Subsidy Statutes. • Staff has contracted with Ehler's to conduct a third party analysis of the project and to evaluate if the project meets the "But For" test and it has been determined that this project meets that criteria. Findings satisfying this "But -For" test can be found within the attached Ehlers Memo dated June 30, 2021 and the TIF Plan. • Projected cash on cost return on investment for the Developer is 6.72% which falls within the industry standard of 6.5-7%. the analysis by Ehlers concludes that the $1,172,000 in proposed City assistance does not unduly enrich the company. Funding Source: New 9-year TIF District (TIF #18) for the business subsidy and $10,000 fee from the Developer for processing the Application and legal related to TIF Plan and TIF Agreement. Recommendation: STAFF Staff recommends moving forward with this proposed project and supports the Resolutions #21-241 and #21-242 in this case. Staff believes this project meets several goals outlined within the City's Adopted Strategic Plan and EDA Work Plan. Please see observations section for benefits and considerations regarding this request. EHLERS Ehlers completed the underwriting for this project. Please see the attached Ehlers MEMO. In summary, Ehlers' findings support moving forward with approving this request. EDA The EDA reviewed this project, completed application and analysis by Staff and Ehlers on July 8 and August 12, 2021. The EDA in favor of moving forward with this project with the $1,172,000 in TIF Pay -Go -Note Assistance. The EDA determined that this request is consistent with with the City of Ramsey Business Subsidy Policy. The EDA unanimously passed a motion recommending approval of the actions in the two attached resolutions. Attached to this case are EDA minutes from July 8 amd August 12. Action: Motion to adopt Resolution #21-241 Resolution Approving The Modification To The Development Program For Development District No. 1 And Establishing Tax Increment Financing District No. 18: Oppidan Industrial Within Development District No. 1 And Approving The Tax Increment Financing Plan Therefor; And Authorizing An Interfund Loan , subject to review by the City Attorney. --and-- Motion to adopt Resolution #21-242 Authorizing Execution of a Tax Increment Financing (TIF) Agreement: Oppidan Incorporated; subject to review by the City Attorney. Attachments Project Location Map Site Plan Concept ACTION Resolution #21-241 ACTION - Resolution #21-242 ACTION - TIF Plan (TIF District 18) ACTION - TIF Agreement (Oppidan) Scored Business Subsidy Application Draft Public Hearing Notice