An indoor sports training facility is looking to move from Coon Rapids to Ramsey if its development partner can reach a purchase agreement to buy a city-owned property.
Platinum Properties wants to buy a 9.3-acre site from the city of Ramsey at the southeast corner of 143rd Avenue and Jasper Street, which is in an industrial park generally located north of Highway 10 and east of Ramsey Boulevard.
If Ramsey sells the property, the first project Platinum Properties would tackle would be construction of a 50,000-square-foot building with 40,000 square feet of that for the Adrenaline Sports Center.
This business has been around for eight years at 11521 Eagle St. in Coon Rapids, on the north side of Highway 10 and east of Hanson Boulevard. It started as the Gold Kick Sports Center and the name changed four years ago to Adrenaline Sports Center, said business owner Jason Jacob.
According to Jacob, between 4,000 and 5,000 families come to his Coon Rapids’ facility every year. The biggest customer base are the youth soccer players that come from the Blaine, North Metro, Northern Lights and Three Rivers soccer clubs. The busiest months are between October and April when the business is open seven days a week. The other times of the year is by appointment only.
Beyond soccer, the business also works with baseball and soccer players and it does train adult athletes as well.
“There’s a huge shortage of indoor space on this side of the river,” said Jacob, who added that he has needed to turn some customers away because space is limited.
The new facility he would like to build in Ramsey is only 5,000 square feet larger than the Coon Rapids space. But Jacob is a tenant in Coon Rapids and the landlord–Delta ModTech–informed Jacob that it needs the space for its own business expansion.
Jacob said he looked in a 10-mile radius, concentrating on staying in Coon Rapids while also looking at Andover and Ramsey before he and Platinum Properties found a site in Ramsey they like.
On Sept. 1, Ramsey’s Economic Development Authority and Planning Commission heard about the prospect of bringing an indoor athletic training facility to its community. Council Members Chris Riley and Kristine Williams, who both sit on the EDA, said there was interest from the EDA in bringing in this type of business. Riley’s daughter trained at Adrenaline’s Coon Rapids facility a few years ago so he is familiar with them.
Williams likes the idea of bringing in families from surrounding communities into Ramsey. And she has heard there is a market demand for these type of multi-tenant buildings for light industrial businesses.
“I think it’s a real good opportunity for the city of Ramsey. I’m excited about it,” Riley said.
However, Riley and Williams said the land sale negotiations are ongoing and thus the EDA did not make any recommendations to the Ramsey City Council.
The city will ask Platinum Properties to complete a subsidy request form so that the development company and its proposal can be audited by the city’s financial consultant Ehlers and Associates.
Platinum wants to buy the 9.3 acres for $500,000.
Patrick Brama, economic development coordinator for the city of Ramsey, said the city could have asked for anywhere from $709,000 to $1.01 million based on typical land sale prices in similar zoned industrial parks.
The city has actually not directed its land broker – CBRE –t o list this property for sale, so there is not an asking price. But after the Ramsey City Council last year decided that this property would no longer be needed for the future public works campus, it directed city staff to begin marketing this property.
This 9.3 acres is part of an approximately 20-acre parcel that Ramsey purchased for $1.75 million in 2008. This was previously the Bury & Carlson site, according to Brama.
Williams said it is important for Ramsey to stay competitive with its neighbors, such as Coon Rapids and Elk River, in attracting new developments and this included offering lower than market value land prices.
However, Williams and Riley said they and the rest of the EDA wants Platinum Properties to agree to a more clear construction timeline for second phase construction.
Platinum Properties has told the city it would construct the 50,000-square-foot building in 2017. Jacob told ABC Newspapers that his lease with Delta ModTech expires May 1, 2017. Jacob said he would need to be in the new building by the third week of October 2017.
However, Riley and Williams said the purchase agreement will need to have groundbreaking and opening date deadlines included for the second building, which Platinum Properties is planning to be 72,000 square feet but has not announced any tenants for that second building.
Regardless what the EDA says, the City Council will make the final decision.
“If there’s a time commitment, I’m willing to look at the feasibility of lowering the price,” Williams said.
“We like the idea, but let’s keep working on negotiating this deal,” Riley said. “The more they commit to building it sooner, the more flexibility the city would have in the negotiations.”