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<br />Case # 1 <br /> <br />Potential Business Development (Ebony Addition) <br />By: Sean Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />Staff has identified two prospects that wish to develop on the same lot in the City of Ramsey (See Map). The <br />first business is a light industrial rigging company and the other is a start-up 2/3 size hockey rink/training <br />facility. The selection process should take into account: business diversity, tax impacts, job creation, growth <br />potential and other factors. Staffhas been negotiating with the prospective businesses but it is important to have <br />the EDA make a decision regarding which business to enter into exclusive negotiations with. The intent of this <br />discussion is to gain input and insight fr()m the EDA as to who the City should work with to get a deal done. <br /> <br />Observations: <br /> <br />Staff has been in contact with these businesses for the past few years. There have been other general inquiries <br />but these businesses have presented the City with required information stating what the project consists of and <br />they have timelines that will lead to Spring/Summer construction. Both businesses are requesting a subsidy to <br />write down the cost of land for the project. (See Attached letters) The Hockey rink project creates a good <br />number of jobs but many of the wages fall below the state guidelines for providing a business subsidy. The <br />Rigging Company plans to hire a high number of living wage jobs that could benefit the residents ofthe City of <br />Ramsey. If the decision were made solely on the quality of jobs (wages) the decision would be in favor of the <br />Rigging Company. The EDA should weigh all the factors below and make a determination on which business <br />to enter into formal negotiations with. <br /> <br /> Proposed Estimated Estimated <br />Business Square Market Property Current Job Creation Wage City of Finish <br />Type Footage Value Tax Generated Employees (two years) Range Origin Date <br /> End <br />2/3 size Hockey Rink 34,000 $2-4,000,000 $ 63,000-127,000 0 12 $8-$12 N/A 2007 <br /> End <br />Rigging Company 40,000 $2,100,000 $66,000 9 10 or more $18.00 and up Anoka 2007 <br /> <br />Both projects will create a good number of jobs, have substantial growth potential, and add some industry <br />diversity to Ramsey. <br /> <br />Recommendation: <br /> <br />None.. <br /> <br />EDA Action: <br /> <br />Motion to recommend staff to negotiate a development agreement with <br /> <br />EDA: 05.10.07 <br /> <br />8 <br />