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CASE # <br /> <br /> PUBLIC HEARING TO CONSIDER EXECUTION OF <br />BUSINESS SUBSIDY AGREEMENT WITH L AND D PROPERTIES, LLC. <br />By: James E. Norman, City Administrator and <br /> Sean Sullivan, TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with L and D Properties (dba Precise Metalcraft) has been <br />negotiated with City staff. The project includes the construction of a 10,500 square foot <br />office/warehouse building in the Summer of 2003. The building will be located in West Radium <br />Business Center First Addition south of the H & P properties building. It is anticipated that the <br />project will create at least 3 new jobs paying a wage of at least $12.00 per hour in a two-year <br />period. <br /> <br />The County Assessor has established an assessed taxable market value of approximately <br />$550,000 for the project. It is anticipated that the project will generate $11,800 dollars annually <br />in taxes and approximately $10,750annually in tax capacity. The tax increment generated per <br />year will be approximately $9,300 per year toward the TIF District, which would be used to <br />assist the City with its payment for public improvements. <br /> <br />The development agreement for this project is in excess of a 40-page document. The City has <br />utilized the consistent and standard format except for the dollar amounts specific to the project. <br />Any changes in the land use are passed through to the City Attorney for his review. Given the <br />above, staff has attached the pertinent pages of the agreement for Council review. As Council is <br />aware, the other sections deal with indemnity, construction documents, prohibitions against <br />assigmnents, and transfer to the agreements to pay deficiencies. The entire agreement is <br />available at City Council request. <br /> <br />Council Action: <br /> <br />Motion to authorize business subsidy agreement with L and D Properties, LLC. <br /> <br />- and - <br /> <br />Motion to authorize execution of a development agreement with L and D Properties, LLC., <br />contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br />TIF Specialist <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC: 07/08/03 <br /> <br /> <br />