Consider Development of 15153 Nowthen BLVD, Old City Hall Site

The property located at 15153 Nowthen Boulevard, known as the old municipal center, is the subject of this case.  The Subject Property contains two large parcels and two substantial buildings; those being, the City's former police station and municipal center.  Currently, the Subject Property serves as an interim fire station.  Attached to this case is a detailed property profile.

The Subject Property was identified as surplus City-owned Land in 2011 by the City Council; and, staff was directed to pursue options for disposal.

Recently, the City was approached by Connexus Energy regarding the Subject Property.  Connexus Energy has identified the Subject Property as the "best site in Anoka County" for the development of a data center. 

The purpose of this case is to gage the Council's position on developing the Subject Property for a data center.

Connexus Energy is interested in (A) partnering with the City of Ramsey to develop the Subject Property for a data center; and, (B) attaining a State of Minnesota "Shovel Ready Certification" for the Subject Property.

In summary, the Minnesota "Shovel Ready" certification gets a number of documents, licenses and surveys in order before a developer steps forward. "Shovel Ready" certification makes a Ramsey site more competitive/attractive than other available sites across the State and Country. Additionally, certified sites are marketed by the State of Minnesota Department of Employment and Economic Development (DEED) at a national level.  Connexus Energy has indicated they would be willing to pay the State Shovel Ready Certification application fee (about $3,000). 

This case was brought forward to the EDA in October. The EDA indicated they support development of the Subject Property as a data center site, the pursuit of the State's "Shovel Ready" certification (which includes a $20,000 dedication of funds from the EDA for required work) and partnering with Connexus Energy to market the Subject Property.  Attached to this case is a presentation used by Connexus Energy for the October EDA meeting.

Additionally, the EDA has ordered sketch plans for three development scenarios; which include a two phased data center approach, one phase data center approach and a single family residential approach.  Each approach will be analyzed from a cost/benefit perspective, be used to guide proper zoning and for visual referencing purposes.  The EDA has indicated they would like to clearly understand what benefits and challenges each scenario will bear.

Because the Subject property is owned by the City of Ramsey, and the Subject Property needs to be rezoned in order to allow for a data center user, support from the City Council regarding this initiative is important to move forward. Data Centers are traditionally found in industrial or employment type districts. In this case, given the surrounding built environment, the City Council may want to consider a modified or hybrid district to ensure compatibility with the surrounding current and future land uses. Zoning tools could include a Planned Unit Development (PUD) or a Overlay District specifying the modified standards.

EDA Fund

Staff recommends that the City Council to provide feedback and direct Staff to commence the necessary zoning amendments, including completion of conceptual sketch plans (if so desired).

Provide general direction on the following three items:

1.  Continue to explore developing the Subject Property as a data center site.
2.  Explore rezoning the Subject Property for a data center use.
3.  Support a partnership between the City of Ramsey and Connexus Energy for the development of the Subject Property for a data center.