Ramsey could soon see its first business moving into the planned Bunker Lake Business Park.
The City Council approved multiple actions related to a Tax Increment Financing District and the final plat for Delta ModTech in late June.
Founded in 1978, the company designs and develops manufacturing machines for industries from pharmaceuticals to automotive manufacturing.
Its facility will be approximately 200,000 square feet built on about 43 acres of an 87 acre property near the intersection of Puma Street Northwest and Bunker Lake Boulevard. The area is envisioned as a business park in the city’s comprehensive plan.
The total project cost is approximately $19.7 million, and the city will provide aid through a TIF district, which will generate approximately $972,000 over nine years for the business.
A TIF district generates funds based on increased tax value of a developed area. The difference between the original tax value of a parcel and the increased value is generally used to support projects within the district.
The business is expected to bring 135 jobs to Ramsey; 15 of those will be newly created jobs, and the rest will be moving with the company. Wages are expected to be at least $22 per hour for each job.
The city hopes those jobs will help increase the number of users for restaurants and retail in Ramsey, which has been a goal for the city.
“In order to do this you need to increase rooftops, you need to increase trip generation and daytime populations,” Economic Development Manger Sean Sullivan said. “A company of this size does exactly that.”
Council Member Chris Riley listed a few additional benefits he sees in the project, including: the pay-as-you-go TIF, which means the city isn’t out any money up front; the estimated $90,000 in annual tax revenue after the TIF district is decertified; and the fact that this is the first business going into this business park and the unpaid assessments on the property will be collected.