Agenda - Economic Development Authority - 09/14/2023

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Mr. Aarsvold replied that the RLF fund exists for this purpose and would result in less tax abatement but noted that would be a matter of policy. Economic Development Manager Sullivan confirmed that this is exactly what the RLF fund is for and believed that it should be used for this project. He stated that in 2009 they outlined a policy which included the tools available for project financing and included tax abatement. He stated that although they have not used tax abatement in the past, he thought this would be a good opportunity to bring it forward for discussion. Member Riley commented that the RLF fund is a great story, prded some historical context. He noted that the fund has not been used for a number of years this is the exact purpose of this business assistance tool. He stated that he likes the idea of a that funds this would allow the business to expand in Ramsey and would create jobs. Economic Development Manager Sullivan comme assistance application. He summarized the proje He also reviewed the considerations before the EDA. for the community. He recognized that financial assistan and incentivize them to come to Ramse t this is an exist to grow. Member Riley recapped that the estimated a this would not take anything away from the that these funds would be g towards a buil into the future. roject scored t business eviewed the as ce options. d that this i great project ften used to chase new businesses sey business that is continuing ould be be - een five and seven years and t would go Aainst the new value. He stated on which taxes would continue to be collected Member Howell stated that she appreciates the fran - ss of the representative that the project will move forward or without the assi commented that if the tax abatement is used, that would taxes that would beco ected to diffuse costs for others in the city and therefor es not see a reason to use that in this instance. She commented that she would support use o F fund to offer some assistance. Chairman Wiyninger stated that he also supports the use of the RLF fund and would be hesitant to use tax abatement as that couset a precedent for the future. Member Johnson co - - d that this company has existed in Ramsey for many decades, is family owned and employee i ed. She commented that the land was purchased in 1980 and supports the staff recommenda on to use both forms of financing for the project. Motion by Member Stewart, seconded by Member Lindahl, to recommend to the City Council financial assistance in the form of a $150,000loan from the City RLF for a term of six years with an interest rate of 3.5 percent. Motion carried. Voting Yes: Chairperson Wiyninger, Members Stewart, Lindahl, Howell, Johnson, and Riley. Voting No: None. Absent: Member MacLennan. Economic Development Authority/ August 10, 2023 Page 4 of 5