15153 Nowthen Blvd: Update and Grant Application

The EDA and City Council have expressed interest in developing the old municipal center site located at 15153 Nowthen Boulevard (the "Subject Property").  The Subject Property is 20.5 acres in size, is made up of two parcels and is the temporary location of City Fire Station #2.

The City is considering two general development scenarios: data center development and residential development; with the target being a data center development.  The City is partnering with Connexus Energy to pursue the data center development opportunity.

As part of this effort, Staff was directed to pursue a "Shovel Ready" development certification through the State of Minnesota. Additionally, both the EDA and the City Council have requested Staff develop a cost/benefit analysis on potential development scenarios.

In February/March, the EDA and City Council reviewed said cost/benefit analysis and directed Staff to move forward with positioning the old municipal center site for a data center development; while keeping the option of a residential development open.  As it stands today, the Subject Property is zoned "Public/Quasi Public." The next step in this process is to consider zoning solutions and to engage the public (surrounding property owners).

(1) Provide update on zoning process (correspondence sent to surrounding property owners)
The next step in the process to develop the Subject Property is zoning. As it stands today, the Subject Property is located within the Public/Quasi Public Zoning District. A Comprehensive Plan and Zoning Amendment would need to be approved to allow for a data center user.  

The EDA and City Council directed Staff to begin the zoning process by engaging surrounding property owners via an open house, to be held on April 18,  6-9 pm in the Council Chambers.  Staff will report findings from said open house; and, develop a proposed zoning and long range planning solution for consideration.  Staff recently sent out the attached correspondence to surrounding property owners. Purpose of said correspondence:

 

(A) Provide residents with detailed background information/notification of proposed development(s)
(B) Invite residents to provide input/feedback
(C) Invite residents to attend an open house on April 18, 6:00pm, Ramsey Municipal Center
 

(2) Discuss Phase II environmental assessment and grant opportunity
As a result of a phase I environmental assessment conducted in November 2012, three "recognized environmental conditions" were identified on the Subject Property.  In order to clear said "recognized environmental conditions" from the property, as phase II environmental assessment would need to be conducted.  Meaning, additional soil borings would need to be attained and reviewed. 

Staff sent out a request for proposal (RFP) for a phase II environmental assessment in March. Responses ranged from $6,500-$10,000. Staff is aware of a grant opportunity to pay for the phase II environmental study, for the potentially needed response action plan (RAP) and for reimbursement on past environmental testing conducted on the Subject Property (50%).  In total, the grant application would be near $10,000.  The application deadline is May 1.  The award date would be mid June.  Staff would like EDA direction to pursue this opportunity.

This grant opportunity is called a "Tax Base Revitalization Account Grant" and is funded by the MetCouncil.

 

NA

Staff would like EDA direction regarding the opportunity to apply for a 'Tax Base Revitalization Account Grant' through the MetCouncil to pay for past and future site investigation costs.

Alternatives:

(1) Apply for a Tax Base Revitalization Account Grant
This would give the City an opportunity to pay for 50% of previous site investigation costs and 100% of future site investigation costs with a grant.  Estimated total, $10,000.  Staff recommends the EDA direct Staff to pursue this opportunity.


(2) Do NOT apply for Tax Base Revitalization Account Grant
This would NOT give the City an opportunity to pay site investigation costs with a grant. Said costs would funded through the EDA budget.