Agenda - Economic Development Authority - 09/06/2007

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2 acres. Mr. Mulrooney stated Bennett Cooper Floors currently occupies all ofthe 10,500 square foot building and approximately 4,000 square feet of the second 12,000 square foot warehouse building. The owners of the company have expressed an interest in rehabbing the remaining 8,000 square feet of the warehouse building to make it available for lease to two additional businesses that have expressed an interest in relocating and expanding to the City of Ramsey. The owners are seeking to complete this project to improve the overall performance of Bennett Cooper Floors. Mr. Mulrooney' reviewed the proposed improvements and related costs to renovate the building, at an estimated cost of$139,000. Economic Development Consultant Mulrooney stated staff was approached by this business due to the fact that they are looking for financing to accomplish the rehab of this 12,000 square foot building. Under the Ramsey Revolving Loan Fund (RLF) guidelines there is a cap of 40% ofthe total project cost that the City can provide, which would be $56,000 on this project. The remaining financing for the project would be provided by their bank. Mr. Mulrooney explained this project involves a request from a company who is a wholesaler and limited retailer. In February of 2005 the RLF guidelines were amended making retailers ineligible for RLF proceeds. He advised this project also entails redevelopment of a commercial building, which is one of the goals that the EDA has established for the fund. Mr. Mulrooney requested guidance from the EDA regarding program eligibility for the loan request from Bennett Cooper Flooring. He advised there are also issues from a planning standpoint regarding this project. Economic Development Coordinator Sullivan indicated there are two buildings on this site. As it currently stands the primary use is the carpet company and the accessory use is storage for the carpet company. There are some issues to be worked out through the Planning Commission to allow this, but it seems that there would be enough space for parking in order for the project to occur. There is also the inability to utilize the RLF for retail businesses. However, at the beginning of this year the EDA expanded commercial/retail to be incorporated in its scope. Staff is looking for guidance on this loan request. Timing is important on this project. The owner would like to get this going as soon as possible. Staff and the Board discussed the following in relation to the RLF request from Cooper-Bennett Flooring: . Potential tenant uses would include service and retail . Financial assistance from the RLF would be provided to Cooper Bennett Flooring as a real estate redevelopment project, rather than to the retail tenants . Implications from a tax base and job perspective with the warehouse conversion to a multi-tenant facility . Increase in the assessed value of the property . Requirement for the business to have at least 10% vested in the project . Consideration of amending the RLF guidelines to include retail Economic Development Consultant Mulrooney advised the reason the RLF guidelines were amended to exclude retail was to avoid being charged with giving someone in the retail sector a competition advantage over another. It could be argued that this is a real estate development project. No direct dollars would be going to fund inventory or things of that nature that someone Economic Development Authority/August 9, 2007 Page 7 of9 7