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<br />Council's authorization of the Ramsey Crossings area as a redevelopment area, eminent domain <br />action, the selection of Robert Muir Company (RCM) as the preferred developer, and the <br />exclusive negotiation agreement with RCM. Mr. Lasher indicated tonight the development <br />agreement with RCM is before the Council for review and comment. <br /> <br />Mr. Lasher stated the Ramsey Crossings site plan includes three primary buildings. RCM is in <br />negotiations with Target for the fIrst building site. There will also be a lumber wholesale retail <br />store and a general retailer, possibly Kohls. Mr. Lasher provided an ov€rview of the Ramsey <br />Crossings site plan consisting of 62 acres and 16 parcels with 645,000 square feet of large retail. <br />He advised part of the project includes the construction of public streets and the extension of, <br />116th Street ~n the north. He indicated utilities will be placed inside of Sunwood Drive and will <br />allow for future expansion to the north of this property. Mr. Lasher advised there are a couple of <br />items in the property that will need to be relocated. One is a cell tower with a lease; they will be <br />back to discuss how to modify that lease and where to relocate the tower. <br /> <br />Mr. Lasher provided an overview of the development agreement between the City of Ramsey <br />and RCM for the Ramsey Crossings project. He indicated RCM has agreed to purchase the <br />development property from the City. The City will enter into a purchase agreement to assemble <br />all 16 parcels, and in July 2007, RCM will purchase all of those properties. In the event the City <br />is unable to successfully negotiate a purchase with the owners, eminent domain is a possibility; if <br />this cannot be done in a timely fashion there would be a quick take process to assure_ the City has <br />the property by July 2007. RCM has agreed to pay for offsite improvements in the amount of <br />$1,747,488.00 and to be assessed 50% for the 1 16th Street extension. RCM has agreed to begin <br />construction in July of 2007, and plans to have the primary Phase I open in October of 2008. <br />Target will be fIrst building to come forward for site plan approval; it will take approximately 1- <br />~ years to build out Phase I from the time Target opens. <br /> <br />City Administrator Norman indicated Attorney Tom Bray is present to answer questions. He <br />advised the developer is still reviewing the draft language included in the agreement and the City <br />Attorney will recommend language to be included in the motion. <br /> <br />Mayor Gamec noted Section 4.1 refers to the use of TIP funds. He requested clarifIcation that <br />TIF funds will be used for utilities and street work, not for the particular businesses. <br /> <br />Attorney Tom Bray, Briggs and Morgan, replied Section 4.1 is a list of conditions that would <br />allow the City or developer to terminate this agreement. This section indicates that a condition <br />to this agreement is the City's adoption of the TIP District. <br /> <br />Mr. Lasher clarifIed the purpose of TIF funds as outlined in the Tax Increment Plan was to cover <br />costs of public infrastructure, roads, utilities and improvements within the project area. TIF <br />funds will be able to be used for projects within the defIned area, as well as 25% of the TlF funds <br />are allowed for projects in the larger district area. <br /> <br />Councilmember Elvig requested clarifIcation that TlF funds will be used for infrastructure that <br />will benefIt the retail uses; tax dollars will not be used to construc~ buildings. <br /> <br />Mr. Lasher stated TIF funds will only be used for roads and infrastructure. <br /> <br />City Council! December 28, 2006 <br />Page 12 of 26 <br /> <br />P24 <br />