Agenda - Economic Development Authority - 10/09/2025

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Economic Development Authority (EDA) Meeting Date: 10/09/2025 Primary Strategic Plan Initiative: Promote economic growth and development. 4. 1. Title: Consider Recommendation to Approve TIF Plan, TIF Agreement and Business Subsidies; Case of Zero Zone; Case of Zero Zone Refrigeration, LLC Purpose/Background: The purpose of this case is to consider a recommendation that the City Council approve the TIF Plan, TIF Agreement and Business Subsidies for Zero Zone Refrigeration (Zero Zone) relating to their proposed 55,000-58,000 square foot expansion here in Ramsey. Althought not required by State Statute, Staff thought it would be important to have the EDA review the TIF plan and TIF Agreement and make a recommendation to the City Council. As previously communicated, in 2021, Zero Zone expanded its manufacturing operations in Dyersville, Iowa with critical support provided by the Iowa Economic Development team. Ramsey was looked at for this investment but difficult workforce conditions at that time and the incentive package offered by Iowa lead to the decision to invest in Iowa. Since 2021, Zero Zone, with the assistance of City Staff, has worked with the Workforce Center and Anoka Area Chamber and has found some solutions with its workforce deficit and is confident that Ramsey and the surrounding communities have enough workers to strongly consider an 11 Million dollar investment in Ramsey. Zero Zone is requesting $360,000 in Pay -Go TIF Note with 6% Interest to assist with TIF-eligible site costs and the City Council has previously provided support for this level of TIF assistance. Zero Zone and the City have also applied to the State of Minnesota for $350,000 from the Minnesota Investment Fund (MIF) and $450,000 from the Job Creation Fund (JCF). The State has provided conditional approvals for the above assistant amounts and there will be additional documents needed to be executed by the City and/or Zero Zone Refrigeration. Zero Zone has indicated that if the assistance above is approved, they will move forward with the project in Ramsey; not Iowa. Zero Zone acquired Systematic Refrigeration in 2002 here in Ramsey. In February 2007, the company acquired an adjacent site from the City of Ramsey where the proposed expansion will occur for $440,000. The proposed 55,000 square -foot expansion on this site will result in the creation of 55-70 new jobs with starting wages exceeding $21.00/hr. Based on analysis by the City and Anoka County the 55,000-58,000 SF expansion will add $5,222,400 in taxable value which will result in $150,320 new taxes annually. Approximately $54,000 of the new taxes generated will be captured as TIF under the current proposal and will be paid to Zero Zone in the form of a TIF note for a period of 9 years. For clarification purposes, Zero Zone will pay the full taxes and the TIF payments will be provided a year afterward as a reimbursement for eligible project costs. This project is exactly what economic development is all about; helping an existing business expand and flourish in Ramsey. Notification: None is required for this action. Two Public Hearings notices have been published for the October 14 City Council meeting to consider approval of the TIF plan, TIF Agreement, MIF Agreement and Business Subsidy Agreements. Time Frame/Observations/Alternatives: Staff has been working with DEED, TAAFT Law and Ehlers to draft documents required for the TIF, MIF and JCF. All documents are complete and will be formally acted upon by the City Council on October 14th, following the Public Hearings. Below is an updated schedule for reference: EDA meets at 7:30 a.m. to consider TIF request and makes recommendation to