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CASE <br /> <br /> PUBLIC HEARING TO CONSIDER EXECUTION OF A <br />BUSINESS SUBSIDY AGREEMENT WITH W PROPERTIES, LLC. <br />By: James E. Norman, Ci~ Administrator and <br /> Sean Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with W Properties, LLC, a Minnesota Limited Liability <br />Company has been negotiated with City staff. The project includes the construction of <br />approximately 40,000 square foot office/warehouse building prior to December 31, 2005. The <br />building will be located west of RJM/General Paper Products in Gateway North Industrial Park <br />No. 5. It is anticipated that the project will create at least 12 new-jobs paying a wage of at least <br />$12.00 per hour in a two-year period. <br /> <br />The project is expected to achieve a taxable market value of approximately $1,600~000~ It is <br />anticipated that the project will generate $54,200 dollars annually in taxes and approximately <br />$31,250 annually in tax capacity. The tax increment generated per year will be approximately <br />$19,800 per year toward the T~ District, which would be used to assist the City with its <br />payment for public improvements and land acquisition costs. <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 a~eement for Council review. As Council is <br />aware, the other sections deal with indemnity, .construction documents, prohibitions against <br />assi~m-maents, 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 W Properties, LLC. <br /> <br />- and ~ <br /> <br />Motion to authorize execution of a development agreement with W Properties, LLC, contingent <br />upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br />T~ Specialist <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC: 08/26/03 <br /> <br />-119- <br /> <br /> <br />