Agenda - Economic Development Authority - 05/11/2006

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Case # 2 Potential Business Case By: Scan Sullivan, Economic Development Coordinator Background: Staffhas been in contact with a company from Rogers, MN. The company would like to relocate to the City of Ramsey and is seeking financial assistance to make their project work. The company uses water cutting technology to make parts for other companies. This technology is cutting edge and it would be a touch of diversity for our Sunfish Lake Business Park. Observations: This company has provided the City with a business plan and it is available for review upon request. The name is left off this case to keep confidentiality. There have been other general inquiries but these businesses have presented the City with required information stating what the project consists of and they have timelines that will lead to Summer construction. Lot 2, Block 1, Sunfish Lake Business Park Third Addition is the preferred site for this company. Estimated Estimated Job Business Proposed Square Market Property Current Creation Wage City of Finish Type Footac~e Value Tax Generated Emplo)'ees {two ),ears) Rankle Off,lin Date $12.00- End Machine Shop 20,000 $1,400,000 $17,000 9 10-14 $15.00 Rogers 2006 Staff recommends that a Development Agreement be negotiated with the company and to provide financial assistance within the Minnesota Business Subsidy Law. Staff also recommends that the EDA recommend this project to the City Council for approval ifa mutually agreeable financial assistance package can be reached. Recommendation: Staff recommends that a Development Agreement be negotiated with the company and to provide financial assistance within the Minnesota Business Subsidy Law. Staff also recommends that the EDA recommend this project to the City Council for approval ifa mutually agreeable financial assistance package can be reached. EDA Action: Motion to recommend approval of project to City Council. ~ . EDA: 05.11.06 11