Laserfiche WebLink
<br />land cost write down of $192,500 which represents the reduction in necessary soil correction and <br />pond relocation, but does not credit the developer with the storm sewer extension as requested by <br />Panther. The net cost to the developer would be $47,080, which is in line with the guidelines. <br />Mr. Sullivan explained the gray area is the pond on the site. Tom Olson of Panther Precision <br />would like the pond to be an amenity, which the Engineering Department agrees with. There is <br />some discussion on who will maintain the pond and pay for the specifics. This is yet to be <br />determined in the process, but it is agreed to have the pond area look nice. <br /> <br />Chairperson Riley inquired about the location of the pond. Economic Development Coordinator . <br />Sullivan reviewed the current and the proposed location of the pond. He indicated Panther <br />Precision would absorb the costs of soil correction and the pond, which would be approved by <br />City Engineering staff. Panther is looking for a recommendation from the EDA to proceed with <br />this project in principal. <br /> <br />Chairperson Riley asked whether the City has always been aware of the pond on this site and the <br />lot being unbuildable. Economic Development Coordinator Sullivan replied staff did not realize <br />the lot was unbuildable until about two to three years ago when they were attempting to correct <br />the soil and borings were done. A solid base is needed for manufacturing companies with heavy <br />machinery. Panther Precision was the first business in this industrial development, and this <br />provides an opportunity for a business that would like to grow in the City. <br /> <br />Chairperson Riley clarified with Economic Development Coordinator Sullivan that tax increment <br />financing (TIP) funds are available for the proposed project. He requested clarification that the <br />City would spend $192,000 and the developer would spend $47,000 on the proposed project. <br />Economic Development Coordinator Sullivan indicated the TIF assistance in the project would <br />assist in making the lot buildable. <br /> <br />Member LeTourneau asked if the lot is undevelopable as it stands on its own or if it will just be <br />very expensive for someone to make it buildable. Economic Development Coordinator Sullivan <br />indicated as it stands now there is a small pad in the back of the lot that could likely <br />accommodate a 10,000 square foot building. It would not maximize the site and would look out <br />place in comparison with the surrounding buildings. This has been marketed to other potential <br />suitors of the site, but no one is willing to step up and do the corrections. <br /> <br />Member LeTourneau noted that a smaller building being put on the site by a different party <br />would not create the revenue base for the City in the same capacity that an expansion for Panther <br />would create. <br /> <br />Economic Development Coordinator pointed out a different project on the site would likely be a <br />10,000 square foot building as compared to the potential for a 40,000 square foot building with <br />this project. A 10,000 square foot building would limit the size and growth of the company; <br />Panther has committed to hiring an additional 8 manufacturing employees with this project. In <br />addition, the TIP on this property ends in 2011. <br /> <br />Economic Development Consultant Mulrooney advised strategically this is a good thing for the <br />City. If Panther were not to do this project here they may be forced to do it somewhere else, and <br /> <br />Economic Development Authority/Aprill0, 2008 <br />Page 5 of 14 <br /> <br />5 <br />