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Motion by Member Johnson, seconded by Member Stewart, to recommend to City Council to <br />approve of Purchase Agreement and Right of Re -Entry Agreement as presented, subject to City <br />Attorney review. <br />Further discussion: Member Howell stated that she does have hesitation about bringing more <br />apartments into The COR but does really like the product and therefore will be supporting this <br />project. <br />Motion carried. Voting Yes: Chairperson Wiyninger, Members Johnson, Stewart, Howell, <br />Lindahl, and Riley. Voting No: None. Absent: Member MacLennan. <br />4.02: Consider Provision of Business Assistance for Soderholm and Associates <br />Economic Development Manager Sullivan presented the staff report. <br />Brian Soderholm, COO of Soderholm and Associates, commented that their company started in <br />1959 and they are a local Ramsey business. He noted that in the past few years they have created <br />the SA Group as the umbrella for their different businesses in Ramsey and provided details on <br />those three brands. He stated that they are very excited to have the new hotel coming to Ramsey <br />as their visitors have been using hotels in Maple Grove. He stated that they have outgrown the <br />current building space in Ramsey and are renting multiple spaces throughout Ramsey. He <br />provided details on their employees, noting that they are high paid, skilled jobs. He stated that the <br />proposed addition would allow them to bring their staff in-house under one roof. He stated that <br />they anticipate breaking ground at the end of the month and recognize that this request is coming <br />later in the game than typical. He stated that this project will go ahead regardless, but noted the <br />increased costs that they did not anticipate related to construction costs and water and sewer <br />connection. He stated that they currently pay about $30,000 annually in property taxes and would <br />anticipate that to quadruple along with the building size. He anticipated about 33 new staff <br />additions and noted that they do hire within the area and employ many Ramsey residents. He <br />stated that they hope to explore any financial assistance options the City could offer. He stated <br />that the company is 100 percent employee owned, noting that each employee owns shares in the <br />company which grow in value and benefit the employee in retirement. <br />Chairperson Wiyninger asked for input from Ehlers. <br />Jason Aarsvold, Ehlers, commented that they did review this project recognizing that this is a bit <br />different than the typical review that is done for projects with a return on investment. He stated <br />that in this review they attempted to provide assurance that this assistance would not unduly enrich <br />the project and provided details on how that review was done. He stated that if the City chose to <br />provide the proposed assistance it would not unduly enrich the project. <br />Member Riley asked for more explanation on the different calculations that were done. <br />Mr. Aarsvold provided more explanation on the tax abatement process. <br />Member Stewart asked if one method of financing would be better compared to the other. <br />Economic Development Authority/ August 10, 2023 <br />Page 3 of 5 <br />