Continued: Ramsey buys Town Center land, seeks developers

The city of Ramsey grabbed the reins on its stalled Town Center project Friday when it paid $6.75 million to buy the remaining 148 acres of undeveloped land.

"There is some interest among new players and old ones, and they all see this action as breaking the logjam that has been in place for quite some time," said Heidi Nelson, deputy city administrator. "It's a new day for Town Center."

Probably the most promising prospect is Allina Medical Clinic, which in June said it will build a new clinic in Ramsey. Others also have indicated an interest once the city owned the site, Nelson said.

"In a difficult economic market, this gives the city a strategic advantage in working directly with developers," City Administrator Kurt Ulrich said after the closing Friday. "We own the land. We will try to meet their needs for a site."

The project has languished since the original developer went broke in 2006. A group of banks, led by MinnWest Bank Central, foreclosed on a $35 million loan to developer Bruce Nedegaard. The banks later sued the city to loosen its development restrictions on the land. The suit settlement included the city buying the site from the banks.

Town Center's original vision in 2003 was to have a downtown sprinkled with fountains and about 40 acres of parks or wetlands near more than 2,000 housing units within walking distance of small shops and commuter rail. More than half of the 322-acre site is developed with townhouses, a small shopping center and several office buildings.

Mayor Bob Ramsey said the vision could change somewhat, with a big box retail store being a possibility, but that amenities like waterways and possibly a lake still should make Town Center unusual enough to attract development.

"We have to make this project work and recoup our investment," he added.

The city's net cost for the property is $4.65 million after applying a $1.5 million letter of credit Nedegaard provided to cover city landscaping and other improvements, and another $600,000 in excess funds levied for the Savannah senior housing project, said city Finance Director Diana Lund.

The $4.65 million will be borrowed from city water and sewer utility funds, Lund said. The mayor said as soon as the land is sold and back on tax rolls, the utility funds would be repaid.

Looking for retailers

Five Ramsey officials traveled to a retailers conference in Las Vegas in May to look for potential developers or retailers that might want to locate in the Town Center, Nelson said.

"We went to the International Council of Shopping Centers conference," Ramsey said, and talked to businesses, including Bass Pro and CVS Pharmacy, and learned that unique developments have the best chance of succeeding.

He said the city plans to keep the Town Center's pedestrian-friendly design with a wetland and ponds theme to attract development. An outdoor amphitheater is planned for the east end of the site, he said, and the city is working to get a Northstar Commuter rail station on tracks passing the south side of the Town Center.

Besides Ramsey, Council Members David Elvig and Matt Look, both members of city's Economic Development Authority, made the Las Vegas trip. They were joined by Ulrich and Economic Development Coordinator Sean Sullivan. Ulrich said the city paid the trip expenses, totaling about $7,000.

The group made more than 60 contacts at the conference, including about a dozen with representatives who expressed serious interest in the site. The group talked to drug store and restaurant chain representatives and some medium to large department or discount stores, Ulrich said.

"We see local retailers in the Minneapolis and St. Paul market. We were going to an international show to try and expand our horizon a little bit for businesses that might want to enter the Minnesota market," Ulrich said.

Allina's plans

Allina Medical Clinic has announced it will spend more than $7 million to build a new clinic in Ramsey that could be located in the Town Center. The 23,000-square-foot clinic would replace a smaller one on Ramsey's east side, officials said.

The city also will pitch Town Center to the U.S. Veteran's Administration, which has announced it will build a medical clinic between Elk River and Anoka, the mayor said.

The Anoka County Board passed a resolution last week endorsing Town Center for the proposed veterans' clinic, said Board Member Dan Erhart. He is also chairman of the Anoka County Regional Rail Authority, which voted last week to pay up to $150,000 for the final design work for the Ramsey Northstar rail station, Erhart said. The city also will pay half of the estimated $300,000 for final station plans, Ramsey said.

Erhart said it could take a few years to get federal or other funding for a Ramsey station, which may cost up to $14 million, including railroad right-of-way.

Jim Adams • 612-673-7658