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CASE # a <br />PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS <br />SUBSIDY AGREEMENT WITH CTT PROPERTIES, LLC (Panther Precision Machine) <br />By: Sean M. Sullivan, Economic Development Coordinator <br />Background: <br />Recently a development agreement with CTT Properties; LLC (Panther Precision Machine) has <br />been negotiated with. City staff. The project includes the construction of a 25,000 square foot <br />office/warehouse building in the Fall of 2008. The building will be located east of the lot owned <br />by Panther Precision Machine on Sunwood Drive in Sunfish Lake .Business. Park. CTT <br />.Properties .has committed to the creation of 8 new j obs paying a wage of at least $14.00 per hour <br />in a two-year period after move in to the new facility. The business subsidy being proposed is <br />within the City Council guidelines that require 1 job to be created for each $25;000 increment of <br />assistance provided. <br />The County Assessor has established an assessed taxable market value of approximately <br />$1,776,000 for the project. It is anticipated that the project will generate $58,200 dollars <br />annually in taxes and approximately $34,770 annually in tax capacity. The tax increment <br />generated per year will be approximately $18,000, which would be used to assist the. City with its <br />payment for public improvements. <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 />assignments, and transfer to the agreements to pay deficiencies. The entire agreement is <br />available at City Council request. <br />Funding Source: <br />Tax Increment Financing District No. 10 <br />Council Action: <br />.Motion to authorize business subsidy agreement with CTT Properties, LLC. <br />- and - <br />Motion to authorize execution of a development agreement with CTT Properties, LLC, <br />contingent upon review by the City Attorney. <br />Reviewed by: <br />i <br />City Administrator ~~.. <br />CC: 08.12.08 <br />-249- <br />