Laserfiche WebLink
-60- <br /> <br />Economic Development Consultant Mulrooney explained that the Tax Increment District has <br />jurisdiction. He stated that he does believe that taxes will be paid on the property because C2 <br />and Zero Zone are purchasing the company to expand their business. <br /> <br />Councilmember Kurak inquired if the key issue before them was the job requirements. <br /> <br />Economic Development Consultant Mulrooney replied that that is one of the key issues that need <br />to be resolved. The Minnesota Department of Trade and Economic Development feel that it is <br />the best scenario to achieve the rest of the goals set out in the original agreement. C2 and Zero <br />Zone are willing to agree to all agreements, with exception to the 50 new job requirement. <br /> <br />City Attorney Goodrich noted that the annual increment paid to the City during the term of the <br />loan is $92,850 over 12 years. <br /> <br />Councilmember Henddk~ stat~'d ihat the $592,000 is the amount of benefits the City gave <br />Mateski Properties ufider the assurance they would give the City additional jobs. He inquired as <br />to what the penalties ';a~:~jf they ,_.~.._f~lt q~hat requirement. <br />City Attorney Goodrich e~i~ned' {~!i'by ~?ite Statute if the goals are not met the developer is <br />required to pay all or part of <br /> <br />Councilmember Hendriksen questidfiad if the de~eloper would be obligated, under the <br />agreement, to repay some portion {b~;:the.$592;i)~i;;i:~bpending on how many jobs above and <br />beyond the 38 jobs achieved accordin~ ~ila~' Sta~i~. <br /> <br />City Attorney Goodrich replied that because,,61f?'ihe 4ef~'i'~f~ agreement that is in place the <br />developer would be required t° pay back all o~}~; $S~7~00. <br /> <br />Counm~ember Hendnksen questmned the value of the bu}:Ia~ng. <br /> <br />Economic Development Consultant Mulrooney explained that ~')~'~st ~G~gage was done on <br />80 percent loan to value bas~s. ~e $300,000 loan Mates~ ,p[pp:emes recmved ~om the C~ty was <br />used to purchase equipment. He expressed that it was ina~urate that ~e assets are wo~h less <br />than what is owed on the prope~ presently. <br /> <br />Councilmember Hendriksen replied that based on his calculations they are within $100,000 of <br />being i 00 percent mortgaged. <br /> <br />Mayor Gamec inquired if both the City Attorney and Mr. Mulrooney were recommending the <br />change in agreement. <br /> <br />Economic Development Consultant Mulrooney replied yes. <br /> <br />City Council/January 8, 2002 <br /> Page 10 of 27 <br /> <br /> <br />