Agenda - Council - 03/28/2000 - Laserfiche WebLink

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The developer (Mateski Properties, LLC) is requesting a level of assistance consistent with past practices of the city. The city has been requested to provide the site for this project plus a rebate for site improvements. Our estimated value for the site in today's market is approximately $490,000. In addition to the site, the company has requested that they be reimbursed for site improvements totaling $50,000. On Tuesday, the Council will be asked to provide final approval of a development/business subsidy agreement for this project. Basic terms of the agreement that have been negotiated with the developer require the developer to construct the project of 80,000 SF and meet certain minimum valuation, wage and job goals. The construction cost is estimated to be approximately $3,100,000. The developer has agreed to create at least 50 new jobs at an hourly wage rate of at least $10.00 per hour within 2 years of receiving the assistance. The proposed agreement also requires that if the wage and job goals are not met, the assistance must be repaid to the city. A public hearing was previously held on this project on December 14, 1999. At the hearing the proposed subsidy was discussed along with an application to the Minnesota Department of Trade and Economic Development for a grant in the amount of $250,000. When approved, the grant will be used to make a loan to the company for equipment. In summary, the total subsidy is: A site of approximately 6.42 acres Site Improvements Loan (Minnesota Investment Fund Grant) Total Assistance $490,000 $50,000 $25O,O00 $79O,0O0 I will be happy to attend the Council meeting on Tuesday to answer any questions the Council may have regarding the development/business subsidy agreement. Corporate Address: 8960 Springbrook Drive Suite 230 Mpls. MN 55433 Phone: (612) 780-7900 Fax (612) 786-6606 I I I I I I I I I I I' I I I I I I I