5.1.
Economic Development Authority (EDA)
- Meeting Date:
- 04/02/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Title:
Staff Updates
Purpose/Background:
Joint City Council - EDA Meeting
The City Council and EDA will have a joint-meeting on Tuesday, April 14, 5:30 p.m., in the Lake Itasca Room. The agenda includes: (1) EDA workplan update by staff, (2) CBRE update by Brian Pankratz, (3) Shovel Ready Program Introduction by DEED representative Jim Gromberg.
Skeeter Boat Company Considering Elk River Location
Skeeter Boat Company (link), currently located at 9421 US Highway 10, on the western edge of Ramsey, is considering an opportunity to relocate their operation to Elk River. This opportunity is outlined in a recent StarTribune article (link).
Staff connected with Skeeter’s management team to better understand the situation. Skeeter has indicated the opportunity in Elk River is a unique and rare situation in which they can pick up a nice existing building/ property at a very low cost. Skeeter’s Ramsey location is not “ideal” for Skeeter’s long-term needs.
Skeeter has indicated the City of Ramsey has done nothing wrong to cause Skeeter to consider Elk River—and that Ramsey has been great to work with. Staff has offered to work with Skeeter Boat Center to identify opportunities in Ramsey. Skeeter Boat Center appreciated the offer/follow-up and stated they will connect with Ramsey after the opportunity at-hand is vetted.
Economic Development Prospect “Power”
A significant manufacturing and assembly prospect from Elk River has identified the new Ramsey business park (link) as a potential location for a 105,000 square foot facility. This project would create 190 jobs in Ramsey (which would rank #4 in terms of employment in our community). This prospect has indicated Otsego and Ramsey are the final two cities they are considering. They would like to begin construction no later than August 1, 2015. They would like to complete their project by spring 2016. It is anticipated, this prospect will make a site location decision in the next three weeks.
Recruiting this business to Ramsey would include use of State and City incentives. Discussions and negotiations with this prospect have been positive to-date; and have remained within the City’s adopted “business subsidy policy.” Staff has a meeting scheduled with this prospect for Monday, March 30; which will include: Councilmember LeTourneau, EDA Chair Steffen, Economic Development Consultant Mulrooney, MN DEED representative Gromberg and staff.
If this project does move forward, it will require several processes, reviews and policy discussions to occur in an “efficient” timeframe. In that event, staff will provide additional details on the prospect/ project, details on requested incentives, project schedule, etc.
RALF and Armstrong City Owned Properties
RALF: Over the past 90 days staff has spent a considerable amount of time working with tenants located on City owned properties along Highway 10 (commonly known as RALF properties). PACT Charter and Northern Light leases are due for renewal in 2015; and both new leases may require modifications to the premises. Staff expects lease proposals for both users to come forward in the next 60 days to the City Council. Youth First is in the process of designing a new, commercial-grade, kitchen for their space. A request for these improvements will come to the Council in the next 60 days. Staff continues to work with Independent Auto regarding number of property maintenance issues and other outstanding items.
ARMSTRONG: Over the past 90 days staff has spent significant time working with previous property owners/tenants located on City property purchased for the Armstrong Interchange project. Anoka County, will be taking over the process of site demolition and clean-up for said properties in March. Staff is working with Anoka County to ensure all properties have been vacated by tenants; and all equipment and personal possessions have been removed. This includes an auction for equipment left in the Wiser Choice Liquor store building.
F&C (Residence at The COR) Refinance/Sale
As of late February, F&C has indicated they are now selling their property in Ramsey rather than refinancing. They expect to close on this sale on April 09. As a result of F&C pursing a sale rather than a refinance, the City Council re-adopt a set of new/ updated resolutions and amendments related to pervious agreements with F&C (this was the second time the Council will review/ adopt said documents).
Purchase Agreements:
The City Council and EDA will have a joint-meeting on Tuesday, April 14, 5:30 p.m., in the Lake Itasca Room. The agenda includes: (1) EDA workplan update by staff, (2) CBRE update by Brian Pankratz, (3) Shovel Ready Program Introduction by DEED representative Jim Gromberg.
Skeeter Boat Company Considering Elk River Location
Skeeter Boat Company (link), currently located at 9421 US Highway 10, on the western edge of Ramsey, is considering an opportunity to relocate their operation to Elk River. This opportunity is outlined in a recent StarTribune article (link).
Staff connected with Skeeter’s management team to better understand the situation. Skeeter has indicated the opportunity in Elk River is a unique and rare situation in which they can pick up a nice existing building/ property at a very low cost. Skeeter’s Ramsey location is not “ideal” for Skeeter’s long-term needs.
Skeeter has indicated the City of Ramsey has done nothing wrong to cause Skeeter to consider Elk River—and that Ramsey has been great to work with. Staff has offered to work with Skeeter Boat Center to identify opportunities in Ramsey. Skeeter Boat Center appreciated the offer/follow-up and stated they will connect with Ramsey after the opportunity at-hand is vetted.
Economic Development Prospect “Power”
A significant manufacturing and assembly prospect from Elk River has identified the new Ramsey business park (link) as a potential location for a 105,000 square foot facility. This project would create 190 jobs in Ramsey (which would rank #4 in terms of employment in our community). This prospect has indicated Otsego and Ramsey are the final two cities they are considering. They would like to begin construction no later than August 1, 2015. They would like to complete their project by spring 2016. It is anticipated, this prospect will make a site location decision in the next three weeks.
Recruiting this business to Ramsey would include use of State and City incentives. Discussions and negotiations with this prospect have been positive to-date; and have remained within the City’s adopted “business subsidy policy.” Staff has a meeting scheduled with this prospect for Monday, March 30; which will include: Councilmember LeTourneau, EDA Chair Steffen, Economic Development Consultant Mulrooney, MN DEED representative Gromberg and staff.
If this project does move forward, it will require several processes, reviews and policy discussions to occur in an “efficient” timeframe. In that event, staff will provide additional details on the prospect/ project, details on requested incentives, project schedule, etc.
RALF and Armstrong City Owned Properties
RALF: Over the past 90 days staff has spent a considerable amount of time working with tenants located on City owned properties along Highway 10 (commonly known as RALF properties). PACT Charter and Northern Light leases are due for renewal in 2015; and both new leases may require modifications to the premises. Staff expects lease proposals for both users to come forward in the next 60 days to the City Council. Youth First is in the process of designing a new, commercial-grade, kitchen for their space. A request for these improvements will come to the Council in the next 60 days. Staff continues to work with Independent Auto regarding number of property maintenance issues and other outstanding items.
ARMSTRONG: Over the past 90 days staff has spent significant time working with previous property owners/tenants located on City property purchased for the Armstrong Interchange project. Anoka County, will be taking over the process of site demolition and clean-up for said properties in March. Staff is working with Anoka County to ensure all properties have been vacated by tenants; and all equipment and personal possessions have been removed. This includes an auction for equipment left in the Wiser Choice Liquor store building.
F&C (Residence at The COR) Refinance/Sale
As of late February, F&C has indicated they are now selling their property in Ramsey rather than refinancing. They expect to close on this sale on April 09. As a result of F&C pursing a sale rather than a refinance, the City Council re-adopt a set of new/ updated resolutions and amendments related to pervious agreements with F&C (this was the second time the Council will review/ adopt said documents).
Purchase Agreements:
PSD LLC: Currently completing preliminary design for site plan and preliminary plat. Expected for April Planning Commission and Council review. The project is one month behind the originally anticipated schedule. If the applicant is able to move forward efficiently, the original closing date of May 1 can still be attained.
NIK Management: Currently completing preliminary design for site plan and preliminary plat. Expected for May Planning Commission and Council review. This project is one month behind the originally anticipated schedule; however, still will be able to close in the time-frame desired by the bueyer (June 1).
On March 24, staff was notified NIK Management has “reassigned” the PA to “GS Land, LLC.” GS Land LLC is based out of St. Cloud, MN. This LLC is made up of two partners (Steve Gerster and Tom Sloan). Steve and Tom recently sold their company, PCI Roads (link); and are both still currently working for PCI Roads. Steve and Tom are looking to invest equity from the sale of their company into real estate projects. Tom and Steve know NIK Management well; and the City of Ramsey.
Moving forward, NIK Management plans on still managing this project to closing, on behalf of GS Land. NIK Management will be paid a commission from GS Land after closing. GS Land has indicated they will be funding the project and the required letter of credit (they are essentially investors and NIK is the project manager). The proposed home builder, Rice Creek (link), is not changing. The proposed project, site layout, and schedule, is not changing. Staff plans on meeting with the new buyer on March 03. Staff believes the involvement of GS Land will help ensure the proposed deal moves forward to closing.
Casey's General Store: Have attained site plan and plat approval. This project is nearly ready to close; Casey's is currently resolving a number of small administrative items (easements, Anoka County review, finalizing the plat, etc.). Closing is set to take place no later than April 23.
24 Restore: Staff has not received an executed copy of the PA from 24 Restore. Staff has directed CBRE to send a PA cancelation notice. Staff is still working with this prospect to find a solution in Ramsey.
Common Bond Communities: Currently completing preliminary design for site plan and preliminary plat. Expected for June Planning Commission and Council review. This project is two months behind the originally anticipated schedule. The original PA calls for a May 01 closing; and includes the ability to extend to July 01 (which has been exercised).
NIK Management: Currently completing preliminary design for site plan and preliminary plat. Expected for May Planning Commission and Council review. This project is one month behind the originally anticipated schedule; however, still will be able to close in the time-frame desired by the bueyer (June 1).
On March 24, staff was notified NIK Management has “reassigned” the PA to “GS Land, LLC.” GS Land LLC is based out of St. Cloud, MN. This LLC is made up of two partners (Steve Gerster and Tom Sloan). Steve and Tom recently sold their company, PCI Roads (link); and are both still currently working for PCI Roads. Steve and Tom are looking to invest equity from the sale of their company into real estate projects. Tom and Steve know NIK Management well; and the City of Ramsey.
Moving forward, NIK Management plans on still managing this project to closing, on behalf of GS Land. NIK Management will be paid a commission from GS Land after closing. GS Land has indicated they will be funding the project and the required letter of credit (they are essentially investors and NIK is the project manager). The proposed home builder, Rice Creek (link), is not changing. The proposed project, site layout, and schedule, is not changing. Staff plans on meeting with the new buyer on March 03. Staff believes the involvement of GS Land will help ensure the proposed deal moves forward to closing.
Casey's General Store: Have attained site plan and plat approval. This project is nearly ready to close; Casey's is currently resolving a number of small administrative items (easements, Anoka County review, finalizing the plat, etc.). Closing is set to take place no later than April 23.
24 Restore: Staff has not received an executed copy of the PA from 24 Restore. Staff has directed CBRE to send a PA cancelation notice. Staff is still working with this prospect to find a solution in Ramsey.
Common Bond Communities: Currently completing preliminary design for site plan and preliminary plat. Expected for June Planning Commission and Council review. This project is two months behind the originally anticipated schedule. The original PA calls for a May 01 closing; and includes the ability to extend to July 01 (which has been exercised).
Notification:
Observations/Alternatives:
Funding Source:
Recommendation:
Action:
Attachments
No file(s) attached.
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kathy Schmitz | 03/30/2015 03:59 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 03/30/2015 08:48 AM
- Final Approval Date:
- 03/30/2015