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Over the first 4 years,the company intends to have 51 full-time positions working at the Ramsey location. <br /> Measured over the first 2 years post occupancy they will have a staff of 47 FTE. Approximately 43 of the 47 FTE <br /> coming to Ramsey will have wages of$18.50/hr. or more. This project would include the construction of a <br /> facility of approximately 105,157 sq ft at an estimated all-in cost of$12.72M. Medart also expects to spend over <br /> $1.000,000 for material handling equipment, shelving and racking prior to operating from a new facility. As they <br /> have explored options, costs have continued to increase - construction costs, financing costs, operating costs and <br /> labor costs,thus Medart is seeking assistance from the City of Ramsey in the form of a'pay-go'tax increment <br /> financing package to help offset the significant private investment Medart would be making. <br /> Business Assistance Application <br /> Medart has provided a complete application and application fee of$5,000. City Staff and Ehlers have completed <br /> the required review and analysis for the project. The project scored a 29 which is on the high end of the moderate <br /> range. Medart has communicated the City preliminary offer of$550,000 in TIF will not be enough to select <br /> Ramsey and they began to seriously explore another option in Wright County. Medart has asked for 1.5M of Pay <br /> Go TIF Assistance in the application. In order to get Medart to select the site in the City of Ramsey, Staff <br /> believes that more TIF (1.1 M to 1.5M)will need to be provided which means 9 years of TIF (amount TBD)vs. <br /> the original 5 year(550K)proposed. <br /> Notification: <br /> A Public Hearing will be required at a later date (proposed to be April 9, 2024) for consideration of the Business <br /> Subsidy and creation of the TIF District. A public hearing is not needed at this time for the proposed EDA action. <br /> Please see the attached proposed schedule to complete the TIF process. <br /> Time Frame/Observations/Alternatives: <br /> The action being considered by the EDA in this case is to provide a recommendation to the City Council on the <br /> framework of a TIF Agreement with Medart, Inc. which includes the type TIF Assistance (Pay-Go), the level of <br /> TIF Assistance (TBD) and job creation goals (30 jobs at$18.50/hr). Staff has asked Ehlers to conduct the <br /> analysis at the highest assistance package of 1.5M. This 1.5M assistance amount represents the closest the City <br /> of Ramsey could get to essentially match the proposal shared by Medart from Wright County. The third party <br /> analysis provided by Ehler's indicates the highest Pay-Go assistance the City could provide(1.5M) and does <br /> not unduly enrich developer. The $1.5M note will accrue interest at 0% and is expected to be paid off in about 9 <br /> years after tax increment is received. Once the TIF note is paid off,the TIF district will be able to be de-certified <br /> and new tax values can return to the general city tax levy. If the TIF generated by the project is is short of$1.5M, <br /> the City is not responsible to pay the shortfall. The project would not move forward in the City of Ramsey <br /> without a higher assistance package for Medart which supports the "but-for" test required for the provision of <br /> TIF. Based on the completed analysis and the relatively high score on the TIF application, Staff believes that this <br /> is good project for the City. The EDA will need to determine what level of assistance is appropriate for this <br /> project and ultimately make a recommendation to the City Council on the amount, if any. Jason Aarsvold from <br /> Ehler's will be in attendance at the meeting to present the findings of the financial analysis and to <br /> discuss the impacts of A election and B election relating to fiscal disparities and available TIF for <br /> assistance. It should be noted that the City of Ramsey has utilized the A-election option for TIF 14 <br /> (COR) and the use of it for the Medart project would not be a first. <br /> Project Highlights <br /> • 105,157SF warehouse building(with 42,000 SF expansion possible) <br /> . $12,722,030 in Project Investment <br /> • $12,544,350 Estimated Tax Assessed Valuation <br /> • $338,237 in taxes annually <br /> . $95,171 in annual taxes for City of Ramsey once district ends (estimated to be 2035) <br /> . 51 new jobs to Ramsey over 4 years <br /> •47 new jobs to Ramsey 2 years after building occupancy <br />