Laserfiche WebLink
CASE # <br /> <br />EXECUTION OF DEVELOPMENT AGREEMENT WITH <br />DIRECT ENCLOSURES <br /> By: James E. Norman, City Administrator <br /> <br />Background: <br /> <br />This proposed TIF development agreement is with Direct Enclosures, for construction of a <br />facility which will be located in Energy Industrial Park as part of Development District No. 1 <br />and Tax Increment Financing District No. 6. The company currently operates out of Maple <br />Grove and employs approximately eight employees and is anticipating hiring an additional four <br />new employees with the expansion in Ramsey's Energy Park. Direct Enclosures, Inc. <br />manufactures steel, electrical enclosures nation-wide. A description of the company is attached <br />to this case. <br /> <br />The Direct Enclosure, Inc. facility will be a 16,080 square foot building with a minimum <br />estimated market value of $750,000. The project anticipates a phase II expansion for an <br />additional 14,000 square feet at some future date. It is anticipated that the project will generate <br />approximately $13,500 in net increment per year toward the TIF District, which will be utilized <br />as payment toward the land purchase and site preparation. As Council is aware, a great deal of <br />site work is necessary to make this project feasible. As has been explained to the City Council in <br />past meetings and in recent correspondence, the City of Anoka Utility will pay contribution to <br />the project and Connexus Energy has agreed to lower the price for the land sale. <br /> <br />The development agreement for this project is in excess of 30 pages. The City has utilized a <br />consistent and standard format except for the dollar amount specific to this project. Any changes <br />in language are passed through the City Attorney for his review. Given the above, staff has <br />attached the pertinent pages of the agreement for Council review. As the Council is aware, other <br />sections deal with indemnity, construction documents prohibitions against assignments and <br />transfer, and the agreements to pay deficiencies. The entire agreement is available at Council <br />request. <br /> <br />Council Action: <br /> <br />Motion to authorize execution of development agreement with Direct Enclosures, Inc., <br />contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />City Attorney <br />Finance Officer <br />Community Development Director <br />Economic Development Consultant <br /> <br />CC: 07/13/99 <br /> <br />I IRA_FSI IVOL 1 lusers~JThieling[~.IOICOUNCIL& ICITYCOUNl1999~lul),iDirectEnclosures713.doc 07/09/99 <br /> <br /> <br />