Agenda - Council - 09/12/1994 - Laserfiche WebLink

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CASE # APPROVE AGREEMENT TO EXTEND CITY UTILITIES TO LOT 1, BLOCK 1, GATEVf~AY NORTH INDUSTRIAL PARK, PLAT 4 AND AUTHORIZE ~LOSING/TRANSFER TITLE ON THE THE PROPERTY By: Ryan Schroeder, City Administrator and Jessie Hart, Finance Officer Background: This case relaters to two different developments. They are treated in one case because they are intertwined. R~cently, Council authorized pursuing the purchase of Lot 1, Block 1, Gateway North IndustriaJ Park, Plat 4. This is the property just west of the Ramsey Athletic Club along C.R.#116. The!purchase price is $20,000. At about the same time, we entered into discussions with Mr. Raymond Renner regarding his proposed purch[ase of the Ramsey Athletic Club from Crosstown Bank. As part of the purchase, Mr. Renner needs to take care of connection to Municipal utilities. Also at the same time, the City entered negotiations with the owners/operators of Detail Tool and Engineering, I~. (DT&E, Inc). This is a specialty tool and die shop currently located in Maple Grove. They h~ve outgrown their current leased space and have been looking for a new site on whibh to constr~ct a 13,000 square foot shop. They have expressed an interest in Lot 1, Block 1, Gateway North~Industrial Park, Plat 4 Therefore, we are proposing purchasing the property and, ~n turn, selhngi~t to DT&E, Inc. for the same amount as the C~ty purchased it. Title will be officially transf{rred 30 days after the adoption of the authorizing ordinance. The DT&E, In~. development is proposed as a tax increment project in order to provide for up front payment c[f the SAC/WAC, trunk charges, and some site improvements. The total proposed TIF infusion is ~roposed at $40,000. After capitalizing 2.5 years of interest and running the entire project to a brea~k even with 9.75% internal financing, the project pays back by the year 2002. The Renner acqr~isition is involved because of the utilities. It is proposed that we contract with Mr. Renner to consti'uct the trunks and laterals to the DT&E, Inc. property concurrent with the Ramsey Athletic Club p~oject. We intend to credit the unit cost of this extension against the SAC/WAC and trunk charges oiherwise owed by Mr. Renner. Attached please find: 1 ) ~oposed Renner Development Agreement 2) F'roposed Detail Tool and Engineering, Inc. Development Agreement 3) 4) ~Proposed Ordinance to Authorize the Sale of Lot 1, Block 1, Gateway North rndustrial Park, Plat 4 to Detail Tool and Engineering, Inc. Detail Too1 and Engineering, Inc. tax increment calculation.