Agenda - Economic Development Authority - 04/14/2003 - Memo

Home

MEMO DATE: TO: FROM: RE: April 14, 2003 Economic Development Authority (EDA) Megan Wald and Sean Sullivan Staff Update Community Development Block Grant redevelopment opportunity: The appraisals for the Chies and Morrell Properties have been completed by RA Field and Associates. The appraisal values are higher than the Anoka County information, but that was to be expected. The appraisals do not include "clean-up" costs above and beyond normal site preparation for the properties. The value for the Chies site is $110,000 and the Morrell site is $265,000. The grant awarded to the City was $220,000. Staff has secured funds that enable the additional costs to be picked up through TIF District No. 2. The next step in the process is to identify additional "clean-up" costs that could be subtracted from the appraisal mount and then to make a formal offer to both parties. Community Development Authority (CDA) Recently the County met with members of the Workforce DevelopmentJAnoka County Marketing team (a team consisting of surrounding cities economic and community development professionals). It was an open discussion to determine what the scope would be of the CDA. The CDA would have the ability to be involved in projects that both the HRA and EDA could undertake. It allows the County to partner with the City i.n "open space" development projects and does not increase the tax burden of Ramsey residents. The net impact on the City of Ramsey would be beneficial. The most recent model would actually amount to a decrease in the amount of property taxes for residents. Currently Anoka County is submitting legislation to 'replace its HRA with the newly formed CDA. Additional information is provided in the attached memo. Potential Development of Lot 3, Block 1, Gateway North Industrial Park No. 5 Negotiations continue with the sale of Lot 3, Block 1, Gateway North Industrial Park No. 5. Previously the City was contacted by two interested businesses for the development of the subject property. Subsequent to the EDA meeting, one of the potential businesses has indicated they will no longer be pursuing the purchase and development of Lot 3. Staff is continuing discussions with the interested party for the development of a 40,000 square foot facility. This item will be brought back to the EDA for consideration as negotiations progress. Sale of Outiot A, AEC Energy Park 4th Addition Negotiations continue for the sale of Oultlot A, AEC Energy Park Fourth Addition. One proposed buyer has determined that the current economic situation does not allow them to purchase the property at this time. However, another party has expressed interest in the property