Minutes - Council - 12/28/2006 - Laserfiche WebLink

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Council's authorization of the Ramsey Crossings area as a redevelopment area, eminent domain action, the selection of Robert Muir Company (RCM) as the preferred developer, and the exclusive negotiation agreement with RCM. Mr. Lasher indicated tonight the development agreement with RCM is before the Council for review and comment. Mr. Lasher stated the Ramsey Crossings site plan includes three primary buildings. RCM is in negotiations with Target for the first building site. There will also be a lumber wholesale retail store and a general retailer, possibly Kohls. Mr. Lasher provided an overview of the Ramsey Crossings site plan consisting of 62 acres and 16 parcels with 645,000 square feet oflarge retail. He advised part of the project includes the construction of public streets and the extension of 116th Street on the north. He indicated utilities will be placed inside of Sunwood Drive and will allow for future expansion to the north of this property. Mr. Lasher advised there are a couple of items in the property that will need to be relocated. One is a cell tower with a lease; they will be back to discuss how to modify that lease and where to relocate the tower. Mr. Lasher provided an overview of the development agreement between the City of Ramsey and RCM for the Ramsey Crossings project. He indicated RCM has agreed to purchase the development property from the City. The City will enter into a purchase agreement to assemble all 16 parcels, and in July 2007, RCM will purchase all of those properties. In the event the City is unable to successfully negotiate a purchase with the owners, eminent domain is a possibility; if this cannot be done in a timely fashion there would be a quick take process to assure the City has the property by July 2007. RCM has agreed to pay for offsite improvements in the amount of $1,747,488.00 and to be assessed 50% for the 116th Street extension. RCM has agreed to begin construction in July of 2007, and plans to have the primary Phase I open in October of 2008. Target will be first building to come forward for site plan approval; it will take approximately 1- lIz years to build out Phase I from the time Target opens. City Administrator Norman indicated Attorney Tom Bray is present to answer questions. He advised the developer is still reviewing the draft language included in the agreement and the City Attorney will recommend language to be included in the motion. Mayor Gamec noted Section 4.1 refers to the use of TIF funds. He requested clarification that TIF funds will be used for utilities and street work, not for the particular businesses. Attorney Tom Bray, Briggs and Morgan, replied Section 4.1 is a list of conditions that would allow the City or developer to terminate this agreement. This section indicates that a condition to this agreement is the City's adoption of the TIF District. Mr. Lasher clarified the purpose ofTIF funds as outlined in the Tax Increment Plan was to cover costs of public infrastructure, roads, utilities and improvements within the project area. TIF funds will be able to be used for projects within the defined area, as well as 25% ofthe TIF funds are allowed for projects in the larger district area. Councilmember Elvig requested clarification that TIF funds will be used for infrastructure that will benefit the retail uses; tax dollars will not be used to construct buildings. Mr. Lasher stated TIF funds will only be used for roads and infrastructure. City Council / December 28, 2006 Page 12 of 26