Agenda - Council - 12/21/1999 - Special

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I I I I I I I I I I I I I I I I I I I CASE REQUEST FOR AUTHORIZATION FOR EXECUTION OF A BUSINESS SUBSIDY AGREEMENT WITH RAMSEY B&B L.L.C. By: James E. Norman, City Administrator Background: The proposed TIF development agreement is with Ramsey B&B L.L.C. for construction of a 42,000 square foot facility to be located along Highway #10 on the site formerly known as The Lighthouse Bar and Grille. The site plan review was considered on the previous agenda case. The facility will be a multi-tenant retail commercial space, which will include the major tenant of B&B. B&B currently operates in downtown Anoka and employs 22 employees and anticipates an additional eight new employees when they operate in the Highway #10 location. While the City's experience in business subsidy for Highway #10 is somewhat limited, it has provided business assistance for the recent construction for a hotel at the intersection of Highway #10 and Sunfish Lake Boulevard. Staff has been negotiating with the development interests for months and is in the process of completing negotiations prior to the special Council meeting of December 21, 1999. If this project is approved by the City Council, staff believes that it will be a desirable improvement from a blighted, commercial condition on the north side of Highway #10. The County Assessor's office has placed the new retail/commercial facility at $1,910,900. It is anticipated that the project will generate approximately $78,300 in tax increment per year toward the TIF District, which would be reimbursed back to the developers as their incentive to proceed with this project. The project would require the creation of a new Tax Increment Financing Redevelopment District and the year of completion is yet to be negotiated. The development agreement for this project is a 30-page document. The City has utilized a consistent and standard format except for the dollar amount specific to the project. Any changes in the language are passed through the City Attorney for his review. Given the above, staff has attached the pertinent pages of the agreement for Council review. As Council is aware, other sections deal with indemnity, construction documents prohibitions against assignments and transfer, and the agreements to pay deficiencies. The entire agreement is available at Council request. Council Action: Motion to authorize execution of a business subsidy agreement with Ramsey B&B L.L.C. contingent upon review by the City Attorney. and - Motion to schedule a public hearing for the creation of a Tax Increment Financing Redevelopment District for Ramsey B&B L.L.C. Reviewed by: City Administrator City Attorney Finance Officer Economic Development Consultant CC: 12/21/99