Agenda - Council - 10/28/1997 - Laserfiche WebLink

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Mr. Schroeder continued with the second project - Northern Airgas. Northern Airgas has had a facility in Ramsey for quite some time (under prior ownership). They are proposing a $1.7 million expansion to the easternmost lot on McKinley Street. The project includes a $20,000 City contribution to site improvements, however, all City costs are covered out of the TIF. Construction is expected to start fairly immediately with final site approval in October. Motion by Councilmember Beyer and seconded by Councilmember Zimmerman to approve the Development Permit for Northern Airgas contingent upon City Attorney review and approval. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Beyer, Zimmerman, Beahen and Haas Steffen. Voting No: None. Mr. Schroeder reported that staff has been working on a hotel proposal for about a year. LAND Company has site plan approval on the southwest quadrant of Sunfish Lake Boulevard and Highway #10 and as part of this development, they are proposing a hotel with a market value minimum of $3 million. The City does not have a prior investment in the land necessary to compete this project. Staff is proposing instead to dedicate available increment (after City costs are covered) to the project for site improvements. This is expected to result in a $25,000 annual reimbursement of increment each year for ten years upon receipt of the second tax payment each year. This is well within the realm of what the City's participation levels generally are and all City costs are covered out of the TIF. Council approval allows the developer to pursue project financing. Motion by Councilmember Beyer and seconded by Councilmember Beahen to approve the Development Permit for Land Company Hotel, contingent upon City Attorney review and approval. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Beyer, Beahen, Haas Steffen and Zimmerman. Voting No: None. Mr. Schroeder pointed out that All-Brite Graphics, located at 6320 Highway #10, has been attempting to expand to the west for quite some time but due to some survey/title problems in that area, as well as their lack of ownership, their efforts have not been successful. He reminded Council that last year, the adjacent intersection at Sunfish and Highway #10 began redevelopment. Redevelopment of the All-Brite/JAC sites would continue that trend (which also seemed to be a high priority mentioned at the visioning session). What is proposed is that the City exercise its rights under eminent domain to acquire the parcel proposed for redevelopment. This parcel is about 50,000 square feet and houses a Volkswagen repair facility with significant site deficiencies according to the City Code. The acquisition would require the City to provide relocation assistance to. the present user. The revenue source to provide for acquisition costs will be the economic development account reimbursed by future increments generated by redevelopment activity. Motion by Councilmember Haas Steffen and seconded by Councilmember Beyer to direct that conversations take place without any eminent domain proceedings at this time. City Council/September 23, 1997 Page 16 of 23 I I I I I I I I' I I i, I