Agenda - Council - 02/22/2000 - Laserfiche WebLink

Home

The public hearing closed at 8:02 p.m. Motion carried. Voting Yes: Mayor Pro tern Zimmerman, Councilmembers Anderson, Hendriksen, and Connolly. Voting No: None. Absent: Mayor Gamec. Council Business Mayor Pro tern Zimmerman called the regular City Council meeting back to order at 8:02 p.m. No action required at this time. It was noted that the Council will allocate the CDBG funds at its February 8, 2000 meeting. Case #2: Consider Approval for Establishment of Tax Increment Financing Plan for TIF District No. 1-7 Mayor Pro tern Zimmerman closed the regular portion of the City Council meeting at 8:02 p.m. in order to conduct a public hearing. Public Hearing Mayor Pro tem Zimmerman called the public hearing to order at 8:02 p.m. Presentation City Administrator Norman stated that the City received a request from the developer for tax increment assistance to be used in conjunction with the redevelopment of blighted property north of T.H. Highway #10 in the area formerly occupied by The Lighthouse Bar and Grille. The developer proposes to demolish the existing blighted structures and redevelop the sites as a multi-tenant commercial retail complex. If Tax Increment District No. I-7 is approved, tax increment will be used to reimburse the developer for eligible demolition, site improvement, and public infrastructure costs. Economic Development Consultant Mulrooney explained this involves the creation of the seventh TIF District in Ramsey and is similar to other creations in being classified as a redevelopment district. He explained the project would be classified as an office/showroom of 42,000 square feet. The company anticipated to move into part of it is B&B Carpet which wilt relocate from Anoka, creating 23 jobs to the City of Ramsey at a pay rate of approximately $14 per hour. After the project is completed, within two years, an additional ten jobs will be created at an average rate of $14 per hour. This results in a total job creation of 33 jobs. Economic Development Consultant Mulrooney stated the assistance is $372,000 in present value terms. Assistance is being considered on a pay-as-you-go basis so when the property taxes are paid, they would be reimbursed for taxes paid on the facility. This provides a risk free situation for the City since it is not bonding ahead of time and relying on property taxes at a future date to pay off City Council/January 25, 2000 Page 9 of 34 I I I I I I I I I I I I I I I I I I I