Agenda - Council - 10/14/2025 - Laserfiche WebLink

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CC Regular Session Meeting Date: 10/14/2025 Primary Strategic Plan Initiative: Promote economic growth and development. 6.2. Title: Public Hearing: Adopt Resolution #25-240 Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No.19 (Zero Zone); within Development District No.1 and Approving the Tax Increment Financing Plan Therefor; Approving a Development Agreement and Business Subsidy; and Authorizing an Interfund Loan Purpose/Background: The purpose of this case is to consider approval of the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing District No.19 (Zero Zone); within Development District No.1 and Approving the Tax Increment Financing Plan Therefor; Approving a Development Agreement and Business Subsidy; and Authorizing an Interfund Loan relating to the proposed 55,000-58,000 square foot expansion here in Ramsey. Although 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 which was done on October 9th. 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: The Public Hearing has been properly noticed in the Anoka Union Herald on September 26, 2025. A copy of the Public Hearing notice is attached to this case. Time Frame/Observations/Alternatives: