09/07/05 - Laserfiche WebLink

Home

Chairperson Riley inquired about the amount of the EDA levy last year. Economic Development/TIF Specialist Sullivan replied the EDA levy last year was $293,000, which was slightly under the maximum levy amount. Member Kiefer noted there was not consensus on levying the full amount, and there were specific properties to purchase that totaled the $293,000. Motion 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 LeToumeau. 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. Economic 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'Oln Tax Increment Financing District No. 2 to assist the developer for a portion of the land cost and site improvements. Minks Custom Homes currently has 7 full time employees as well 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 Council requirements established for providing financial incentives. The initial project would be valued 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. He advised staff recommends that the EDA recommend to the City Council that the City of Ramsey participate financially in the Minks Custom Home project. Member Jeffi'ey 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 obtain building materials at a reasonable price. He indicated he is comfortable with the recommendation as long as staff expresses this concern to the developer and provides further information to the Council. Economic Development/TIF Specialist Sullivan explained the TIF assistance would essentially provide $25,000 per job. If 12 jobs are not created Minks Custom Homes would be required to pay back the TIF assistance. He will express the concerns and provide further information when this comes before the Council. Economic Development Authority/September 7, 2005 Page 3 of 6