Agenda - Council - 08/27/1996 - Laserfiche WebLink

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! I I I I I I I I I I I I I I I I I CASE MATE PRECISION TOOLING EXPANSION By: Ryan Schroeder, City Administrator James Gromberg, Economic Development Coordinator/( ~/~///:~ Background: The City has ~entered into negotiations with Mate Precision Tooling to provide for the expansion of ~eir current facility by 67,000 square feet. This proposed expansion wou!d result in MaS needing additional property to provide for parking for the company s employees. As the Council is aware, at the August 13, 1996 meeting, an ordinance was to begin the condemnation p~roceedings to acquire the Dickinson Property. It currently would be the intent to allow !for Mate to negotiate with the Dickenson's until September 25, 1996, at which time th~. City would begin to rifle a condenmation suit allowing for property acquisition within 90 days. City staff has-negotiated the following tentative development agreement with Mate Precision Tooling: That Mate precision Tooling will enter into a purchase agreement with T and G Land Inc., in the amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) plus the Hamiltoh Property in exchange for the Hunt Property. This purchase agreement process willlbe completed by September 1, 1996. That Mate Precision Tooling will construct a 67,000 square foot expansion to their existing fac~ity and the provision of the required parking improvements to the Hunt property to the south. The proposed expansion would be completed by December 31, 1997, to allo~v the City to collect the fa-st increment with the 1999 real estate taxes. The proposed exi~ansion would have a market value for tax purposes of One Million Eight Hundred Eighty-seven Thousand Six Hundred and 00/100 Dollars ($1,887,600.00). That the citY will provide reimbursement through Tax Increment Financing (TIF) in a present value of Three Hundred Thousand and 00/100 Dollars ($300,000.00) in pay- as-you-go roi' site improvements and remediation of site contamination. That Mate Precision Tooling will strive to acquire the Dickinson Bus property through direct negotiations in an amount of up to One Hundred Sixty Thousand Dollars ($160,000). The City would be responsible through TIF to cover any costs above this amount. TheRe negotiations will be successfully completed by September 25, 1996, or staff will reqtiest that the City continue with the condemnation proceedings. 5. That Mate Precision Tooling will provide the City with the marketable title to the remaining southern portion of the Hunt property in an area not less than two acres in size. Mate Precision Tooling has forwarded a letter of intent (see attached) agreeing to the proposed assistanee package. City staff has reviewed the proposed expenditures and they are supportable from the project Tax Increment Financing cash flows. This proposed assistance is also in accord with the assistance that has been provided to other companies in the City. ttq