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CASE # <br /> <br /> PUBLIC HEARING'TO CONSIDER EXECUTION OF A <br />BUSINESS SUBSIDY AGREEMENT WITH RUM RIVER DENTAL CREATIONS, LLC. <br />By: James E. Norman, City Administrator and <br /> Sean Sullivan, TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Rum PAver Dental Creations, LLC. has been negotiated <br />with City staff. The project includes the construction of a 2,596 square foot office/warehouse <br />building in the Fall of 2003. The building will be located south of Waltec in'Sunish Lake <br />Business Park. It is anticipated that the project will create at least 4 new jobs paying a wage of at <br />least $14.00 per hour in a two-year period. <br /> <br />The County Assessor has established an assessed .taxable market value of approximately <br />$439,000 for the project. It is anticipated that the project will generate $13,900 dollars annually <br />in taxes and approximately $8,030 annually in tax capacity. The tax increment generated per year <br />will be approximately $4,400 per year toward the TIF District, which would be used to assist the <br />City with its payment for public improvements and land acquisition costs. <br /> <br />The development a~eement 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 indemrfity, construction documents, prohibitions against <br />assignments, and transfer to the a~eements to pay deficiencies. The entire a~eement is <br />available at City Council request. -- <br /> <br />Council 'Action: <br /> <br />Motion to authorize business subsidy agreement with Rum PAver Dental Creations, LLC. <br /> <br />- and - <br /> <br />Motion to authorize execution of a development a~eement with Rum PAver Dental Creations, <br />LLC., contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br />TIF Specialist <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC:08/26/03 <br /> <br />-t27- <br /> <br /> <br />