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I <br />I <br />I <br />! <br />I <br />I <br />I <br />I· <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />I <br />I <br /> <br />CASE <br /> <br /> REQUEST FOR AUTHORIZATION FOR EXECUTION OF <br />A DEVELOPMENT AGREEMENT WITH IN-TECH DEVELOPMENT <br />By: James E. Norman, City Administrator <br /> <br />Background: <br /> <br />The proposed development agreement with In-Tech Development is for construction of a - <br />manufacturing facility which will be located in Development District No. 1 and Tax Increment <br />Financing District No. 2, located at the intersection of Sunwood Drive and Ramsey Boulevard in <br />Energy Park. In-Tech Development is a machine shop industry, which is a manufacturer of steel <br />fabricators for plastic injection moldings. The company currently operates out of Maple Grove <br />and employs approximately 25 people and is anticipating hiring more with the expansion in <br />Ramsey's Energy Park. <br /> <br />In-Tech Development will be a 31,700 square foot facility with an estimated market value of <br />$1,100,000. It is anticipated that the project will generate approximately $25,000 in net <br />increment per year toward the TIF District, which will be used to pay for the $94,817 purchase of <br />land from Connexus Energy. The TIF District is scheduled to be completed in the year 2006. <br /> <br />The development agreement for this project is in excess of 30 pages. The City has utilized a <br />standard format except for the dollar amounts specific to this project. Any changes in language <br />are passed through the City Attorney for his review. Given the above, staff has attached <br />pertinent pages of the agreement for Council review. As the Council is aware, other sections <br />deal with indemnity, construction documents, prohibitions against assignments and transfer, and <br />the agreements to pay deficiencies. The entire agreement is available at Council request. <br /> <br />Council Action: <br /> <br />Motion to authorize execution of development agreement with In-Tech Development, contingent <br />upon review by the City Attorney. <br /> <br />Reviewed by: <br /> <br />City Administrator... <br />City Attomey <br />Finance Officer <br />Economic Development Consultant <br /> <br />CC: 05/11/99 <br /> <br />~shared/councilc/citycounfln-Tech <br /> <br /> <br />