Agenda - Council - 01/10/1995 - Laserfiche WebLink

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CASE WENDELL!S DEVELOPMENT AGREEMENT AND SUBSEQUENT LAND By: Ryan R. Schroeder, City Administrator 'James D. Gromberg, Economic Development Coordinator SALE Background: As you are awi xe the City of Ramsey has been negotiating with Wendell's Inc. to construct a new 20,000 squared oot manufacturing facility in the City. Wendell's Inc. is a leading manufacturer of specialty meda]lions and rubber stamps and plans on expanding the facility an additional 10,000 square feet wit tin the next 5 years. Wendell's and the City have agreed upon the site legally described as Lc 1, Block 5, Gateway North Industrial Park 2 as shown on the attached map. This site is currently owned by Waste Management of Minnesota, Inc. and they have agreed to sell the property to the City for this development. Upon Council approval the City is proposing to purchase thc property pursuant to thc attached option agreemcn, t and extend City services to the property for the new facility. Thc City will also bc contributing ~$80,000 toward site improvements with additional annual payments totaling $45,000. This ~' sistance is based upon a minimum tax value of $800,000 which will generate available increment of $19,538 per year totaling $293,073 when the district matures in thc year 2013. This ince~tive package is somewhat mom liberal than in previous projects. Completion of this project, how,~er, will open up another parcel for development with utilities akcady available Cactween Wendel~ s and Detail Tool). It also contributes an immediate $32,601.80 into the utility funds toward the ~afility extension. Finally, we will recover all of our costs prior to the expiration of this district. At the City Council meeting on December 13, 1994 the first reading of an ordinance authorizing the sale of this lot tn ~vVendell's, Inc. was conducted. This ordinance included additional properties that were possiblef locations for the facility but due to Wen~elrs choice this ordinance has been modified to reflect'Only the sale of the chosen lot. For your review the following documents have been enclosed: a) b) c) d) e) Site ilocation map Proposed development agreement Letter to Wendell's Inc. dated November 15, 1994 Mod]died ordinance for adoption Optit~n agreement with Waste Management of Minnesota, Inc. A February ground:breaking is proposed by Mr. Larry Cody, President of Wendell's Inc. The general contractor fdr this project will be Miller Construction of St. Cloud. Recommendations: 1. That the City Council approve the proposed development agreement for Wendell's, Inc. facility. .. Authorize closing on Lot 1, Block 5, Gateway North Industrial Park 2. That the City.. Council adopt the proposed modified ordinance to sell Lot 1, Block 5, Gateway North Industrial Park 2.