Agenda - Economic Development Authority - 02/08/2024

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Proiect Description: Medart is considering locations for expansion of operations. This has led us to look at multiple options in and around the Minneapolis metro area, western Wisconsin, and northern Iowa. Ramsey is a leading candidate for location, but no final decision has been made; in addition to other suitable locations, we also have the ability to extend lease options on our current operations in Anoka through 2030. The company is currently operating out of two spaces in the Anoka area of 45,000 and 15,000 SF respectively. This expansion would allow us to consolidate operations for efficiency purposes, but also add another 35,000+ SF of capacity to meet our growth objectives. Should the project progress in Ramsey, we will look to transition 35 existing positions which are currently not located in Ramsey but spread across multiple leased positions into one location in Ramsey. In the coming years, we anticipate adding 16 additional positions for a total of 51. A further breakdown of this is as follows: • 35 existing jobs of which 32 will be at a wage rate of$18.50/hour or greater plus benefits • 10 new jobs within the first year, post occupancy, of which 5 will be at a wage rate of$18.50/hour or greater with benefits • 6 new jobs projected between years 2-4, all of which will be at a wage rate of $18.50/hour or greater with benefits This project would include the construction of a facility of approximately 105,000 sq ft at an estimated all-in cost of$12,722,030. Medart also expects to spend over $11000,000 for material handling equipment, shelving and racking prior to operating from a new facility. As we have explored options, costs have continued to increase - construction costs, financing costs, operating costs and labor costs, thus we are seeking assistance from the city of Ramsey in the form of a 'pay go' tax increment financing package to help offset the significant investment we would be making. Looking toward the future, and Medart's history of, and desire to, continue as a stable and growing business, this particular property in Ramsey would allow for future building expansion of 47,000 sq ft. It should also be noted that in addition to the long-term tax benefits this property would contribute to local government, we have a track record that spans generations, and we would contribute to further diversifying the industrial base of businesses operating in the city and bring a strong brand and good corporate citizen to the community. We also believe the 47 new jobs to Ramsey would lead to some families relocating to city, bring a trickledown effect to local retail establishments and be a flagship location in our portfolio which customers and other business partners of ours would be visiting in the future.