Agenda - Council - 08/25/2009 - Laserfiche WebLink

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PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH QDP & JBT ALLIANCE, LLC By: Sean M. Sullivan, Economic Development Coordinator Background: CASE # A Recently a development agreement with QDP & JBT ALLIANCE, LLC has been negotiated with City staff. The project includes the construction of a 20,630 square foot office/warehouse building in the Fall of 2009. The building will be located east of Minnesota Waterjet on 144' Avenue in Sunfish Lake Business Park Third Addition. QDP & JBT ALLIANCE, LLC has committed to the creation of 11 new jobs paying a wage of at least $16.00 per hour in a two-year period after move in to the new facility. An assistance package of $250,000 is being presented for consideration. The business subsidy being proposed is within the City Council guidelines that require l job to be created for each. $25,000 increment of assistance provided. The applicant has completed the City Business Assistance Application and is an eligible project. The EDA has reviewed the assistance package on August 13th and recommends approval in its current form. The County Assessor has established an assessed taxable market value of approximately $1,500,000 for the project. It is anticipated that the project will generate $46,000 dollars annually in taxes and approximately $29,250 annually in tax capacity. The tax increment generated per year will be approximately $14,000, which would be used to assist the City with its payment for public improvements and land acquisition costs within this TIF District. The development agreement for this project is in excess of a 40 -page document. The City has utilized the consistent and standard format except for the dollar amounts specific to the project. Any changes to the document are passed through to the City Attorney for his review. Given the above, staff has attached the pertinent pages of the agreement for Council review. As Council is aware, the other sections deal with indemnity, construction documents, prohibitions against assignments, and transfer to the agreements to pay deficiencies. The entire agreement is available at City Council request. Funding Source: Tax Increment Financing District No. 10 Council Action: Motion to authorize business subsidy agreement with QDP & JBT ALLIANCE, LLC -and- Motion to authorize execution of a development agreement with QDP & JBT ALLIANCE, LLC, contingent upon review by the City Attorney. Attachments: Site Location Map Pertinent Pages of Development Agreement Reviewed byAato City Adminisa'& Deputy City Admini for / irector of Community Development CC: 08.25.09