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Economic Development Consultant Mulrooney explained this involves the creation of the <br />seventh TIF District in Ramsey and is similar to other creations in being classified as a <br />redevelopment district. He explained the project would be classified as an office/showroom of <br />42,000 square feet. The company anticipated to move into part of it is B&B Carpet which will <br />relocate from Anoka, creating 23 jobs to the City of Ramsey at a pay rate of approximately $14 <br />per hour. After the project is completed, within two years, an additional ten jobs will be created <br />at an average rate of $14 per hour. This results in a total job creation of 33 jobs. Economic <br />Development Consultant Mulrooney stated the assistance is $372,000 in present value terms. <br />Assistance is being considered on a pay-as-you-go basis so when the property taxes are paid, <br />they would be reimbursed for taxes paid on the facility. This provides a risk free situation for the <br />City since it is not bonding ahead of time and relying on property taxes at a future date to pay off <br />the bond. He explained that the developer is financing the cost of the improvements and being <br />reimbursed over a period of time. Economic Development Consultant Mulrooney stated a <br />redevelopment district can have a term of 25 years of increment or a 27 year total life. In this <br />case, it is anticipated it will be terminated sooner with an anticipated life of 15 years. <br /> <br />Councilmember Hendriksen asked about the job creation. <br /> <br />Economic Development Consultant Mulrooney restated they will bring 23 jobs at $14 an hour <br />average rate and will add another ten jobs at $14 per hour within a two year time frame. <br /> <br />City Administrator Norman noted that Agenda Case 6 is the development agreement and this <br />agenda item is to schedule the public hearing to establish the TIF District. <br /> <br />Mayor Pro tern Zimmerman asked if this District encompasses any other new property. <br /> <br />Economic Development Consultant Mulrooney advised that it includes four different parcels, <br />two are occupied by buildings and two by improvements such as parking lots <br /> <br />Councilmember Anderson stated that some of this property came before the Lower Rum River <br />Water Management Organization (LRRWMO) last week and it was mentioned there was an old <br />agreement for drainage under Highway 10 to the river. <br /> <br />City Engineer Jankowski stated that he is unsure what that reference was to but, in the late 1980s, <br />a storm sewer was proposed that included participation with Mn]DOT to drain the Highway <br />midway between Ramsey and Armstrong Boulevards. <br /> <br />Councilmember Anderson asked that staff research that indication to assure the water drainage is <br />properly addressed. <br /> <br />Councihnember Hendriksen stated he is unaware of any drainage problems with this site. <br /> <br />City Council/January 25, 2000 <br /> Page 10 of 35 <br /> <br /> <br />