Agenda - Council - 01/09/2001 - Laserfiche WebLink

Home

! ! ! CASE # PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH T & G LAND, INC. (TONI SAUTER) By: James E. Norman, City Administrator and Sean Sullivan, TIF Specialist I I I I I I I I I I I I I I I Background: The City Council authorized the execution of a development agreement with Tom Sauter d/b/a T & G Land, Inc. during the Council meeting of December 19, 2000. The proposed development agreement included the acquisition of 8.77 acres of land northwest of the intersection of Sunfish Lake Boulevard and McKinley Street for compensation in the amount of $500,000. Mr. Sauter will receive approximately 18 acres of property in the new Gateway North Industrial Park (Makens property). Sauter proposes to move his landscaping operation and Kobus Trucking to the new Gateway North Industrial Park, allowing the City to develop the property along Sunfish Lake Boulevard with new industrial/commercial buildings. The land received by T & G Land, Inc. will be broken into two.po,rtions; 11.23 acres that will see the immediate construction of an approximately 40,000 square foot building that will be occupied by both Sauter and Kobus Trucking. This Project would create $31,650 in tax increment annually, starting in year 2003. The project also calls for an option that could be exercised by Mr. Sauter for an additional 6.78 acres, which could possibly see the construction of an additional 60,000 square foot of building space. The TIF agreement also allows Mr. Sauter to receive $I00,000 in site improvements for the Maken property. The County Assessor's office estimates the property value around the proposed property will be $1,581,700 which will generate approximately $52,300 annually in tax increment toward the TIF District, which will be used to assist the City with its payment in bonding for land acquisition and public imProvements. The development agreement approved during the December 19, 2000 meeting, is a document in excess of 40 pages. The City has utilized a consistent and standard format except for the dollar amounts specific to this project and for the acquisition of land for the Makens.property west of Sunfish Lake Boulevard. Because the property in the Gateway North Industrial Park is part of a new Tax Increment Financing District (District No. 8), a business subsidy public hearing is required by State Statute. Council is required to take comments from the floor concerning the proposed TIF incentives being offered in the Gateway North Industrial Park. Council's authorization of the business subsidy agreement will complete the full development agreement with Mr. Sauter. Council Action: Motion to authorize business subsidy agreement with T & G Land, Inc. Reviewed by: City Administrator TIF Specialist City Attorney Economic Development Consultant CC: 01/09/01 -177-