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

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I I I I I I CASE PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH OLDCASTLE PRECAST, INC. (AMCOR) By: James E. Norman, City Administrator and Sean Sullivan, TIF Specialist Background: The proposed development agreement with AMCOR d/b/a Oldcastle Precast, Inc. has been recently negotiated with City staff. The company currently operates a 16,400 square foot facility on 7.7 acres of land located in the Gateway North Industrial Park. The project's first phase is a 41,700 square foot facility in the spring of 2001, and is expected to have a second phase project with 27,360 square foot facility built in approximately two years. AMCOR currently operates a concrete product manufacturing business on the site. It is anticipated that the project will increase its employees from the current staffing of 25 to approximately 50 employees in a two- year period. The County Assessor's Office lists the property's current value at $591,200, with a tax capacity of $18,601. It is anticipated that the project will be valued at approximately $3 million dollars, that will generate approximately $100,500 annually in taX capacity, and approximately $56,000 in tax increment per year toward the TIF District, which would be used to assist the City with its payment in bonding for land acquisition and public improvements. The development agreement for this project is in excess of a 30-page document. The City hag utilized the consistent and standard format except for the dollar amounts specific to the project. Any changes in the land use are passed through to the City Attorney for his review. Given the above, staff has attached the pertinent pages of the agreement for Council review. ' As Council is aware, the other sections deal with indemnity, construction documents, prohibitions against assignments, and transfer to the 'agreements to pay deficiencies. The entire agreement is available at City Council request. Council Action: Motion to authorize business subsidy agreement with Oldcastle Precast, Inc. (AMCOR). - and - Motion to authorize execution of a development agreement with Oldcastle Precast, Inc., contingent upon review by the City Attorney. Reviewed by: City Administrator TIF Specialist City Attorney Economic Development Consultant CC: 01/09/01 -187-