Agenda - Council - 01/23/2001 - Laserfiche WebLink

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I I I I I I I I I I I I i I I I I I I CASE # PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH PHEOLL FASTENING SYSTEMS By: James E. Norman, City Administrator and Sean Sullivan, TIF Specialist Background: The proposed development agreement with PheolI Fastening Systems has been recently negotiated with City staff. The company currently operates in Minneapolis and is proposing to move their facility to a 4.5-acre site located in the Gateway North Industrial Park. The project includes the construction of a 48,700 square foot facility in the spring of 2001. The company is an engineering and distributor of manufacturing parts for fastening systems that desires to move closer to an employee base in the northwest metropolitan area. It is anticipated that the project will increase its employees .fi'om the current staffing of 50 employees to an additional 10 new employees in a two-year period. The company currently pays an average of just under $12 an honr per employee. Upon completion of the platting process, the County Assessor will establish an original tax capacity for the parcel of approximately $2,713. It is anticipated that the project will be valued at approximately $2 million dollars and will generate approximately $66,500 mmually in tax capacity, and approximately $44,000 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 has utilized the consistent and standard format except for the dollar alnounts 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 inderm~ity, 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 Pheoll Fastening Systems. - and - Motion to attthorize execution Of a development agreement with Pheoll Fastening Systems, contingent upon review by the City Attorney. Reviewed by: CoPies also distributed to: City Administrator City At{omey TIF Specialist Economic Development Consultant CC: 01/23/01 -75-