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<br />needed for expansion an agreement would be worked out for the payment of that land. cRamsey <br />followed suit with those kinds of numbers for many of the companies in the early stages from a <br />TIF standpoint" Over time the life of the TIF districts would run out, and in many situations the <br />City could not necessarily provide 3 square feet of land for every square foot of building and <br />staff needed to negotiate the deals the best they could. <br /> <br />Member Elvig noted Ramsey has an inventory that is available, as well as a secondary inventory <br />depending on how aggressively the City redevelops. He questioned how they should manage <br />what is remaining in the inventory. Member Elvig suggested consideration of how subsidies are <br />granted in relation to the cash flow coming into the City. He noted in Anoka a build out point <br />for expansion was set into an agreement where if the business was to expand within five years <br />they received the land for $1; if the expansion was not completed in five year the cost of the land <br />was $1 per square foot. He suggested consideration of this type of agreement, and noted <br />businesses that are moving are looking to offset cash needs. <br /> <br />Economic Development Coordinator Sullivan explained TIF budgets are withiI! a district and are. <br />specific. TIF budgets are continually changing and as a whole the districts are increasing. Cash <br />flow is based on each TIF district, and a deal would not be done where the amount of assistance <br />would put a district in the red. <br /> <br />Member Elvig suggested discussion of whether the City is in a position where there are certain <br />companies that may want to come to the City because of the amenities, and the growth and <br />density that is starting to build in the City. Economic Development Coordinator Sullivan replied <br />staff does receive these types of inquiries, but Ramsey is in competition with cities like Rogers <br />and Monticello. Businesses receive opportunities from other cities located on Highway 10 and 1- <br />94, and Ramsey needs to be competitive. He explained the deal negotiated does not always <br />include the maximum amount of assistance; there is a negotiation process, and if a deal can be <br />done with little or minimal TIF that is done. <br /> <br />Member Elvig suggested there should be consideration of whether TIF is offered to businesses <br />due to cash flow concerns, a depleting inventory of land, and the increasing advantages for <br />businesses to locate in the City. He commented there are some types of businesses that will <br />require TIF, but there may be businesses that do not. Economic Development Coordinator <br />Sullivan replied this would be a very significant policy change. He explained funds from a <br />property that is sold in a TIF district cannot be put into the general fund, and the result would be <br />a build up of funds in the TIF districts that would go back to the County when a TIF District is <br />decertified. However, if a TIF district were to be decertified prior to the sale of the property the <br />funds from a land sale could be put into the general fund. <br /> <br />Member Elvig suggested consideration of not placing a TIF district on the additional business <br />park that has being discussed. <br /> <br />Economic Development Consultant Mulrooney advised if Ramsey is not yet in the position of <br />competing for businesses without TIF subsidies, they are rapidly getting to that point. He <br />advised on the need to look at supply and demand of commerciallindustrialland more globally. <br /> <br />Economic Development Authority/October 19, 2006 <br />Page 3 of7 <br /> <br />3 <br />