Minutes - Economic Development Authority - 08/10/2023

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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, provided some historical context. He noted that the fund has not been used for a number of years, but this is the exact purpose of this business assistance tool. He stated that he likes the idea of using that fund as this would allow the business to expand in Ramsey and would create jobs. Economic Development Manager Sullivan commented that the project scored well on the business assistance application. He summarized the project highlights and reviewed the assistance options. He also reviewed the considerations before the EDA. He commented that this is a great project for the community. He recognized that financial assistance is often used to chase new businesses and incentivize them to come to Ramsey, but this is an existing Ramsey business that is continuing to grow. Member Riley recapped that the estimated abatement would be between five and seven years and this would not take anything away from the City as it would go against the new value. He stated that these funds would be going towards a building on which taxes would continue to be collected into the future. Member Howell stated that she appreciates the frankness of the representative that the project will move forward with or without the assistance. She commented that if the tax abatement is used, that would go against taxes that would be collected to diffuse costs for others in the city and therefore does not see a reason to use that in this instance. She commented that she would support use of the RLF 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 could set a precedent for the future. Member Johnson commented that this company has existed in Ramsey for many decades, is family owned and employee owned. She commented that the land was purchased in 1980 and supports the staff recommendation 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 $150,000 loan 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