Adopt Resolution 13-11-184 Authorizing an Application for Tax Base Revitalization Account Grant (Old Municipal Center)

Case Background
In the fall of 2012, the EDA and City Council authorized Staff to pursue a “Shovel Ready” development certification through the State of Minnesota to increase the marketability of the old municipal center site (for either a residential or data center development).  For detailed background information on the old municipal center site development, please reference the Old Municipal Center Background section below.

In April 2013, Staff was directed by the EDA to apply for a MetCouncil Tax Base Revitalization Account (TBRA) Grant to help cover the cost of the State Shovel Ready certification process mentioned above.  Said TBRA grant would pay back 50% of “Shovel Ready” costs incurred by the EDA in 2012; and would cover 75% of “Shovel Ready” costs the EDA will incur in 2013.  In total, the EDA would receive a $14,800 grant from the MetCouncil for $21,800 of “Shovel Ready” work (about half of this work has already been completed).

NOTE: “Shovel Ready” work is specifically referring to hazardous materials testing (i.e. pre-demolition survey) and environmental assessments.  “Shovel Ready” work does not include the City fronting the cost of infrastructure/ or site improvements to make a site “Pad Ready” for an end user.  “Shovel Ready” is a purely informational process.  For more information on the Minnesota "Shovel Ready" program please reference the following webpage: positivelyminnesota.com/Government/Shovel-Ready_Sites/

The application process for the TBRA grant outlined above requires a Resolution from Council to authorize an application.  Due to a Staff oversight, the required Resolution was never adopted by the City Council.  However, the grant application was still processed by the MetCouncil, with the anticipation said Resolution would be adopted.  The City was awarded a $14,800 TBRA grant on June 17, 2013.  In spite of the TBRA grant award, it is still very important the City pass the required resolution—in case the MetCouncil audits the City’s grant application.

Purpose of case
Authorize Application for Tax Base Revitalization Grant Account Grant

Old Municipal Center Background
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 for the Subject Property: (1) a data center development and (2) a residential development.  For more information on the future development of the old municipal center, please visit: http://www.cityoframsey.com/formerrmc.

As part of this effort, in the fall of 2012, Staff was directed by the EDA and City Council to pursue a "Shovel Ready" development certification through the State of Minnesota for the Subject Property. This purpose of this certification is to gather and organize information important to a developer regarding the Subject Property. Said information is used to answer common development questions and potential concerns. A shovel ready property is more desirable/marketable than a non-shovel ready property.  This certification will hold value for the City regardless if the site is used for residential or a data center.

(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.

 

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Funding for this project was originally fronted by the EDA: Account 9230.6249 (Professional Services).  However, with the proposed TBRA Grant the EDA will be reimbursed 50% of previously incurred costs; and, will be supplemented 75% of future costs related to site investigation work for the Subject Property.

For a detailed breakdown, please reference the attached budget sheet.