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 CASE # PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH AMCON CONSTRUCTION COMPANY By: James E. Norman, City Administrator and Sean Sullivan, TIF Specialist Background: The proposed development agreement with Amcon Construction Company has been recently negotiated with City staff. Amcon Construction intends to build a multi-tenant building with the major tenant being a printing company out of Plymouth, Mirmesota. The facility will be located in a 3.65-acre site located in the Gateway North Industrial Park. The project includes the construction ora 50,000 square foot facility in the spring of 2001. It has not yet been dete;mined whether the facility will be a single-tenant or double-tenant building. It is anticipated that the printing company will increase its employees fi'om a current staffing level of 40 emptoyees to an additional 10 new employees in a two-year period. The company will agree to pay above the City's policy of $10 an hour per employee. Upon completion of the platting process, the County Assessor will establish an original tax capacity for the parcel of approximately $1,527. It is anticipated that the completed project will be valued at approximately $2 million dollars and will generate approximately $66,500 ammally in tax capacity, and approximately $45,000 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 stan.dard forn~at except for the dollar amounts specific to the project. Any changes in the land use are passed through to the City Attorney for his revie~v. 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 attthorize business subsidy agreement with Amcon Construction Company. - and - Motion to authorize execution of a development agreement with Amcon Construction Company, contingent upon review by the City Attorney. Reviewed by: Copies also distributed to: City Administrator TIF Specialist City Attorney Economic Development Consultant CC: 01/23/01 -85-