The city of Ramsey is looking to bring in as many as 150 new jobs if Oppidan Investment Company, of Excelsior, moves in.
The City Council held a public hearing Aug. 24 regarding establishing a tax increment financing district for Oppidan’s proposed three buildings on Bunker Lake Boulevard. The measure will be voted on at a later date.
The industrial complex would be the largest in Ramsey.
Tax increment financing districts, better know as TIF districts, help pay for new developments by diverting part of the additional taxes generated by a development to help cover eligible expenses.
The proposed nine-year TIF district has a limit of about $3 million that can be financed, Jason Aarsvold, senior municipal advisor for Ehlers Public Financial Advisors, said. However Oppidan’s proposed assistance is only about $1.2 million.
“Sometimes folks look at the budget number and say, ‘That’s how much TIF you’re giving the developer,’ and that’s not the case,” Aarsvold said.
The developer will receive 60% of the TIF generated. The city will retain the remaining 40% to assist in paying for future improvements.
The total cost of the project is estimated around $42.7 million, according to city documents.
The land to be developed is part of a 43-acre parcel. Oppidan will use about 27 acres to build three buildings, totaling 405,300 square feet.
The nine-year TIF district is on the lower end of the spectrum, Aarvold said.
“This is one of the shorter types of tax increment districts,” he said. “Some of them — housing and redevelopment — go up to 26 years.”
Oppidan estimates the industrial park could bring anywhere from 100 to 150 jobs to Ramsey.
Council Member Chris Riley said the development was a good deal for Ramsey because it will create jobs and help fund future infrastructure improvements.
“It’s hitting a lot of buttons that I’m going to say are really good for the city,” Riley said.
The TIF agreement gives Oppidan a completion deadline of Sept. 30, 2023.