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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 /> Mr. Aarsvold replied that the RLF fund exists for this purpose and would result in less tax <br /> abatement but noted that would be a matter of policy. <br /> Economic Development Manager Sullivan confirmed that this is exactly what the RLF fund is for <br /> and believed that it should be used for this project. He stated that in 2009 they outlined a policy <br /> which included the tools available for project financing and included tax abatement. He stated that <br /> although they have not used tax abatement in the past,he thought this would be a good opportunity <br /> to bring it forward for discussion. <br /> Member Riley commented that the RLF fund is a great story, provided some historical context. <br /> He noted that the fund has not been used for a number of years,but this is the exact purpose of this <br /> business assistance tool. He stated that he likes the idea of using that fund as this would allow the <br /> business to expand in Ramsey and would create jobs. <br /> Economic Development Manager Sullivan commented that the project scored well on the business <br /> assistance application. He summarized the project highlights and reviewed the assistance options. <br /> He also reviewed the considerations before the EDA. He commented that this is a great project <br /> for the community. He recognized that financial assistance is often used to chase new businesses <br /> and incentivize them to come to Ramsey,but this is an existing Ramsey business that is continuing <br /> to grow. <br /> Member Riley recapped that the estimated abatement would be between five and seven years and <br /> this would not take anything away from the City as it would go against the new value. He stated <br /> Economic Development Authority/August 10, 2023 <br /> Page 2 of 4 <br />