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<br />Economic Development Coordinator Sullivan indicated it is important to note two things. First <br />is the cost of doing business in Ramsey as far as running an operation. Second are the fees <br />associated with bringing on a new project. If this will be visited further it is important to look at <br />both aspects of this. In order for him to recruit businesses to the City he needs to be aware of <br />how Ramsey fares with the competition. He has found the case study that Mr. Sharp has <br />provided him with to be helpful. <br /> <br />Member Kiefer commented this feeds into other things the Board has discussed in the past in <br />relation to how business friendly Ramsey is. <br /> <br />Economic Development Coordinator Sullivan noted the tax increases are purely a result of the <br />market value; the tax rates of Ramsey and Maple Grove are very similar. <br /> <br />Member Strommen suggested a case be added to the next meeting agenda to discuss this further. <br />It may be beneficial to consider a larger study with more data points and separate out the <br />construction costs versus operating costs, as well as costs the City controls and does not control. <br />This seems prime to the EDA's function. <br /> <br />Member Schindel stated the way Ramsey handles this will really stand out. It is imperative to <br />treat this with professionalism and due diligence. <br /> <br />Economic Development Coordinator Sullivan indicated the information that has been provided <br />by Mr. Sharp could be incorporated into a comparison of costs in adjacent cities. Connexus <br />could be a control group in the study. <br /> <br />Chairperson Riley noted cities that are competing for business would be another control group to <br />consider. The study should include a couple of count~es, as some of the costs are county issues, <br />some are utility issues, and some are city issues. <br /> <br />Economic Development Coordinator Sullivan stated Ramsey has done quite well for itself over <br />the past five to six years. However, if the concerns raised by Mr. Sharp are a trend the City may <br />start to see a loss of business, which is something that needs to be looked at. He indicated the <br />study will analyze two things: 1) comparison of Ramsey's fees to fees in other cities; 2) the cost <br />of doing business, which will include a mix of Xcel, Connexus, Anoka Electric, etc. <br /> <br />Member Kiefer clarified the study should look at the cost of starting a business versus the cost of <br />maintaining a business in Ramsey. He stressed being careful in the analysis of the fixed costs <br />with the different rate adjustments that are applied to be certain the comparison is apples to <br />apples. <br /> <br />Economic Development Coordinator Sullivan indicated the study will be quite time extensive; he <br />cannot guarantee it will be completed by the next meeting. <br /> <br />Mr. Sharp stated he will provide staff with the information he has gathered to assist in the study. <br /> <br />Economic Development Authority/March 8, 2007 <br />Page 3 of9 <br />