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<br />Presentation <br /> <br />Economic Development Coordinator Sullivan stated staff has negotiated a development <br />agreement with CTT Properties, LLC (Panther Precision Machine), for a 25,000 sq. ft. <br />office/warehouse building to be constructed in the Pall of this year. The building will be located <br />east of the lot owned by Panther Precision Machine. They currently employ 30 people, 19 of <br />them added since they moved to Ramsey. The new expansion will have nine new job creations <br />paying at least $14 per hour. The subsidy proposed is within the Council guideline requirement <br />of one job creation for each $25,000 increment of assistance. In April, the EDA made a motion <br />to recommend approval. It will have an assessed taxable market value of approximately $1.776 <br />million, generate $58,200 annually in taxes, and approximately $34,770 annually in tax capacity. <br />Tax increment generated per year will be approximately $18,000, which would be,used to assist <br />the City with its payment for public improvements. He noted that Tom Olson and Tracy <br />Anderson ofCTT Properties are available to answer questions on the project. <br /> <br />Citizen Input <br /> <br />There was none. <br /> <br />Motion by Councilmember Jeffrey, seconded by Councilmember Strommen, to close the public <br />hearing. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Jeffrey, Strommen, Dehen, Elvig, <br />Look, and Olson. Voting No: None. <br /> <br />The public hearing was closed at 8:26 p.m. <br /> <br />Council Business <br /> <br />Mayor Gamec called the regular City Council meeting back to order at 8:26 p.m. <br /> <br />Tom Olson, Panther Precision Machine, Tracy Anderson of Dynamic Rigging, Inc. introduced <br />themselves. <br /> <br />Councilmember Elvig asked if it is warehouse or manufacturing space. <br /> <br />Mr. Olson stated it is warehouse, manufacturing, and office. <br /> <br />Councilmember Dehen asked staff to explain the subsidy. <br /> <br />Economic Development Coordinator Sullivan explained that TIP is a tool the City has to allow <br />new projects to be built by providing land at a reduced cost. In this case, it is $200,000 and over <br />time, the project will pay taxes to cover the cost of infrastructure and create new jobs. They will <br />sign an agreement to create new jobs or they will have to pay back the assistance. This TIP will <br />expire in 2011 and then the district will be retired. He advised that the City has put up water <br />towers from TIF funds generated beyond expectations. <br /> <br />City Council / August 12, 2008 <br />Page 12 of 26 <br />