Consider Authorizing Economic Development Analysis for the City's Potential Future Business Park

PURPOSE:
Consider authorizing an economic development analysis for the City's potential future business park.

BACKGROUND (Future Business Park):
Please see attached "Background" and "Process & Next Steps" documents for details.  In summary, the EDA/ Council are currently in the middle of a process to consider pursuing a new future business park for the City of Ramsey.  The City completed step #3 of the attached six step process on August 25.  The next step in the process, #4, is to complete an "Economic Development Analysis."

NA

OBSERVATIONS:
Attached to this case is a proposal from ACG (Mike Mulrooney), the City of Ramsey's Economic Development Advisor, to complete an "Economic Development Analysis" for the City's future business park.  This proposal is meant to provide ACG a "not-to-exceed" budget authorization from the EDA.  The work included in the proposal can be summarized into three separate phases: (1) Market Analysis, (2) Cost-Benefit Analysis, (3) Alternatives/ Recommendations.  ACG plans to complete each item in stages, and provide the EDA/ Council with updates/ presentations accordingly.

The attached proposal shows a budget number not to exceed 170 hours, at $175 per hour ($29,750 total).  Staff does have the ability to supplement ACG's work, and reduce the number of hours needed for this project.  However, based on current work loads, staff believes said assistance will be minimal.  Both Staff and ACG understand the desire to come in below 170 hours on this proposed work, and will aim for said goal.

ACG will be present at this meeting to provide more details on their proposal and their background.  In summary, Staff feels strongly that ACG has a unique set of credentials for this proposed work; and to serve our specific community.  Mike Mulrooney is a former Commissioner of the State Department of Employment and Economic Development (DEED), he currently works for the Central Minnesota Development Corporation (CMDC), owns Advanced Consulting Group (ACG), has experience working with several communities/ counties, has extensive experience with several successful business parks, and has worked on thousands of "development deals" throughout his career. Mike has a unique background for the City of Ramsey; as he has been very involved with several of Ramsey's highly successful existing business parks.

ALTERNATIVES:
Authorize the attached ACG proposal
(+) staff is confident we will receive a quality product
(+) staff is confident ACG will provide quality advice/ assistance along the way/ and after the project is completed (including to individual elected officials)
(+) ACG has a unique set of experiences that make them qualified for this work
(+) ACG is the City's preferred economic development consultant (authorized in 2012, to be used on an hourly basis as needed)
(+) staff is confident ACG pricing is reasonable
(+) ACG will be able to "jump in" this project quickly (they are up to speed now)
(-) not to exceed 170 hours, notable cost
(-) City could consider an RFP or RFQ process, could potentially decided to chose a different consultant

Complete a RFQ or RFP process
Staff would like to emphasize, this route would likely delay this work by about 60 days.  From a timing perspective, allow ACG to start this work now would work well (when considering next steps).  Other qualified consultants do exist.  The City may be able to save money by pursing this route.  From legal perspective, RFQ (qualifications) or RFP (proposals) is not required in this scenario; as this work is considered "professional services."  If the City was completing in improvement project exceeding $100,000, it would need to comply with State Statute related to "bid-law."  This route would require additional internal Staff time to complete.

Complete Analysis Internally
Existing workloads in the City's Economic Development Department do not permit this work to be completed in the near future.  Likely, this work would take about six months.  Additionally, Staff believes the quality of information/ reporting from a third party consultant will exceed the ability of Staff.  This route would save the City a significant amount of money.

EDA Miscellaneous Professional Services Account (about $30,000 available in 2015 from the adopted EDA budget).  Remainder, if needed, could come from 2016 EDA budget.

Staff believes this work will put the City Council and EDA in a strong position to make decisions and have an in-depth policy discussion (i.e. Step #5 of the attached process).  This information will not only be helpful now, but will be important in the future as we evaluate our new business park, and as we receive inquires/ questions from the public/ businesses/ new agencies/ etc.  Staff believes ACG is uniquely qualified to complete this work.  This work fits within the City's 2015 EDA adopted budget (Miscellaneous Professional Services Account).  The purpose of this account is this exact type of work.  The City's future business park is a priority in both the EDA and City Council's work/strategic plans.  On 08/25, the Council informally indicated they generally support the EDA completing this type analysis (no details were provided to the Council at that time).  Authorizing this work now with ACG, from a timing perspective, helps this project continue to move forward as efficiently as possible.

Motion to:
Authorize the ACG to complete the work outlined in the attached proposal, not to exceed 170 hours.