Agenda - Council - 10/25/2005 - Laserfiche WebLink

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Chairperson Riley inquired about the amount o£ the EDA levy last year. Economic Development/TIF Specialist Sullivan replied the EDA levy last year was $293,000, which was :~lightl y m~der the maximum levy amount. Member Kiefer noted there was not consensus on levyi, ng the fktll amount, and there were specific properties to purchase that totaled the $293,000. Mtxion by Councilmember Steffen, seconded by Member Strommen, to recommend to City Council to levy the amount of $341,623.59 utilizing the EDA levy. Motion carried. Voting Yes: Chairperson Riley, Members Steffen, Strommen, Jeffrey, and Kiefer. Voting No: None. Absent: Members Elvig, Gromberg, and LeTourneau. Case #2: Minks Custom Homes Project Economic Development/TIF Specialist Sullivan reviewed that staff has been approached by Minks Custom Homes to develop a site on Sunfish Lake Court, The proposed project calls for an initial office/warehouse building of 20;048 S.F. A future expansion of 10,360 S.F..is proposed for the project at a later date. Currently the land needed for this project is held by two property owners. National Growth owns a .88 acre parcel and Command Corporation owns the remaining 2.5 acres needed to complete the project. Staff was directed by the EDA to play a facilitator role in getting the land acquisition done for the proposed project. . l¢~;onomic Development/TIF Specialist Sullivan stated staff has successfully facilitated an agreement that is acceptable by all parties. Minks Custom Homes will purchase both pieces 'of property and will begin construction of a 20,048 office/warehouse project next spring. The Developer has made it clear that the project can not go forward without financial incentives from the City of Ramsey. Staff is proposing to provide $300,000 in financial assistance to the project fi'om Tax Increment Financing District No. 2 to a~sist the developer for a portion of the land cost and site improvements. Minks Custom Homes currently has 7 full time employees as ~vell as many summer seasonal employees. The business proposes to add at least 12 full-time jobs to the City of Ramsey at a minimum of $14.00 per hour which would fulfill the State statutory and City Cotmcil requirements established for providing financial incentives. The initial project would be vr,.lued at approximately $2,000,000 dollars and the expansion would bring the final total to approximately $2,500,000. This project will clear up one of the City's underUtilized pieces of land. tde advised staff recommends that the EDA recommend to the City Council that the City of Ramsey participate financially in the Minks Custom Home project. IMember Jeffrey stated at the Council work session last night there was a discussion regarding the price and shortage of building materials due 'to Hurricane Katrina. He stated this is a good product, but he has concerns about the developer's ability to expand if they are unable to obtairi b~_~ilding materials at a reasonable price. He indicated he is comfortable with the re:commendation as long as staff expresses this concern to the developer and provides further ir~form, ation to the Council. Economic Development/TIF Specialist Sullivan explained the TIF a:;sistance would essentially provide $25,000 per job. If 12 jobs are not created Minks Custom l.lomcs would be required to pay back the TIF assistance. He will express the concerns and p~'c~,ide f'urther information when this comes before the Council. Economic Development Authority/September 7, 2005 Page 3 of 6 -7-