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• The proposed $1,172,000 in Tax Increment Financing will be through a PayGo Note (pay <br />as you go) at 4.5% interest rather than "up -front" financing or bonding. The Developer <br />will receive 60% of the TIF generated by the project <br />• The City of Ramsey will retain 40% of the TIF generated to help pay for future <br />improvements to Bunker 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 <br />development community and prospects is that Ramsey needs to improve it demographics <br />in order attract these users. Ramsey can do that by increasing both population <br />(rooftops) and increasing trip generation (i.e. large employers and destination users). The <br />development of Bunker Lake Industrial Park helps improve demographics needed by <br />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 <br />policy criteria. <br />• The Developer's request for $1,172,000 is justified and meets State of <br />Minnesota Business Subsidy Statutes. <br />• Staff has contracted with Ehler's to conduct a third party analysis of the project and to <br />evaluate if the project meets the "But For" test and it has been determined that this project <br />meets that criteria. Findings satisfying this "But -For" test can be found within the <br />attached Ehlers Memo dated June 30, 2021 and the TIF Plan. <br />• Projected cash on cost return on investment for the Developer is 6.72% which falls within <br />the industry standard of 6.5-7%. the analysis by Ehlers concludes that the $1,172,000 in <br />proposed City assistance does not unduly enrich the company. <br />The Ramsey City Council will be considering approval of TIF District No. 18 on August 24, <br />2021 at 7:00 pm. I look forward to any comments the Anoka County Commissioners or yourself <br />might have in relation to this project. <br />Best Regards, <br />Kurtis G Ulrich <br />City Administrator <br />Attachments <br />