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CASE # a <br />PUBLIC HEARING TO CONSIDER EXECUTION OF <br />BUSINESS SUBSIDY AGREEMENT WITH RDC PROPERTIES, LLC <br />By: Sean M. Sullivan, Economic Development Coordinator <br />Background: <br />A development agreement between the City of Ramsey, a Minnesota municipal corporation and <br />RDC Properties, LLC, a Minnesota Limited Liability Company (Cullinan Rigging) has been <br />negotiated with City staff. The project includes the construction of a 40,920 square foot <br />office /warehouse building in the Summer of 2007. The building will be located on Lots 1 and <br />IA, Block 1, Ebony Addition, North of the newly constructed McKinley Street in TIF District <br />No. 8. The company currently has 7 employees and is located in Anoka, Minnesota. It is <br />anticipated that the project will create at least 10 new jobs paying a wage of approximately <br />$18.00 per hour in a two -year period. This business specializes in moving and storing heavy <br />machinery for businesses. <br />The County Assessor has estimated an assessed taxable market value of approximately <br />$1,900,000 for the project. It is anticipated that the project will generate $59,000 dollars <br />annually in taxes and $37,250 in tax capacity. The tax increment generated (TIF) will be <br />approximately $28,000 per year. The TIF would be used to assist the City with its payment for <br />public improvements and land acquisition associated with Ebony Addition and Gateway North <br />Industrial Park No. 5 as well as the land cost write -down. <br />The development agreement for this project is in excess of a 40 -page document. The City has <br />utilized the consistent and standard format except for the dollar amounts specific to the project. <br />Any changes in the land use are passed through to the City Attorney for his review. Given the <br />above, staff has attached the pertinent pages of the agreement for Council review. As Council is <br />aware, the other sections deal with indemnity,. construction documents, prohibitions against <br />assignments, and transfer to the agreements to pay deficiencies. The entire agreement is <br />available at City Council request. <br />Council Action: <br />Motion to authorize business subsidy agreement with RDC Properties, LLC, a Minnesota Limited <br />Liability Company. <br />-and- <br />Motion to authorize execution of a development agreement with RDC Properties, LLC, a <br />Minnesota Limited Liability Company contingent upon review by the City Attorney. <br />Reviewed by: <br />Community Development Director <br />CC:06.27.06 <br />attic <br />