Agenda - Council - 01/22/2002 - Laserfiche WebLink

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-56- COUNCIL BUSINESS Case #1: Public Hearing to Consider Amending Contract for Private Development between the City of Ramsey and Mateski Properties, Inc. Mayor Gamec closed the.regular portion of the City Council meeting at 7:10 p.m. in order to conduct a public hearing. Public Hearing Mayor Gamec called the public hearing to order at 7:10 p.m. Presentation ~ ,~- City Administrator:(~rman~:,~ ,.,:state~:'~i that the City entered into an agreement with Mateski Properties, Inc., ~/a:~':Syo:tema~:'Re~g~[~tion in June 2000. ~ 80,280 square foot building w~ constructed in 2000~:~hi~fi~:'is ~c~e~B)being used for manuhcmfing, storage, and office space for the construction of re~ion ~. Mates~ Properties have recently met with the Ci, and info,ed the City of?~heir 'i~tent.~)}~ell its interest to Zero. Zone, Inc., a Wisconsin Co¢oration. Requirement to a sale w~id~:~:~uire the City to amend the job goal section of the Development A~eement authohzed ~:~e year Economic Development Consultant ~M~l~0~hey~::~atea that the City of Ramsey has been approached by the owner of Systematic Re~gd~i'~n reg~d~g the potential sale of the business to a company ~own as Zero Zone, Inc. Zero Zohe is h~dhu~ered in No~h Prairie, Wisconsin. ~e company sta~ed in 1961 as a manuhcmi~ oL~ee~ers. They soon became one of the first companies to use ener~ emcient glass doors i~5:~ff-co~:~ned r~h ~ 5eezer units. ~is is a product similar to what Systematic Re~geration cu~ently manufactures in Ramsey, o~y to different markets. ~ 'March of 1999 Zero Zone was acquired h~er company called C2, Inc., which is headqua~ered in Milwaukee, Wisconsin. C2, I~c¢~i~5 NX~:DAQ traded comply engaged in inte~ated'logistic se~ices ~d the manuhc¢~ of re~gerated merch~dising equipment. ~e acquisition of Systematic Re~geration fits with the business plan of C2 ~d it's subsidi~ Zero Zone, Inc. It will allow the comply to ~ow m a more rapid rme ~d enter new markets. It is anticipated that the sale will occur t~ough ~ asset purchase a~eement. Zero Zone will be establishing a separate acquisition comply called ZZ Acquisition II Co¢oration to complete the acquisition. ~e acquisition company will also be assuming some of the liabilities of MatesU Prope~ies LLC and Systematic Re~geration. ~e Contract for Private Development between the City of Ramsey ~d Matesh Prope~ies, LLC is regarded as on of ~ose liabilities. In December 2001 staff met with the Chai~an of C2, Inc. ~d the President of Zero Zone along with representatives of the Mi~esota Dep~ment of Trade ~d Economic Development to discuss a number of issues related to the acquisition. Zero Zone m~agement stated at the meeting that they would require an amendment to the ConWact for Private Development in order for the acquisition to proceed. ~eir main concern revolves around the job creation requirement City Council/January 8, 2002 Page 6 of 27