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CASE # 4 <br /> <br /> APPROVE A(]iREEMENT TO EXTEND CITY UTILITIES TO LOT 1, BLOCK 1, <br /> GATEW/~Y NORTH INDUSTRIAL PARK, PLAT 4 AND AUTHORIZE <br /> CI.~OSING/TRANSFER TITLE ON THE THE PROPERTY <br /> By: Ryan$chroeder, City Administrator and Jessie Hart, Finance Officer <br /> <br />Background: <br /> <br />This case relates Ito two different developments. They are treated in one case because they are <br />intertwined. Redently, Council authorized pursuing the purchase of Lot 1, Block 1, Gateway <br />North Industrial ~ark, Plat 4. This is the property just west of the Ramsey Athletic Club along <br />C.R.#116. The p~rchase price is $20,000. <br /> <br />At about the sarrie time, we entered into discussions with Mr. Raymond Renner regarding his <br />proposed purchas~ of the Ramsey Athletic Club from Crosstown Bank. As part of the purchase, <br />Mr. Renner needs[to take care of connection to Municipal utilities. <br /> <br />Also at the same lime, the City entered negotiations with the owners/operators of Detail Tool and <br />Engineering, Inc.[(DT&E, Inc). This is a specialty tool and die shop currently located in Maple <br />Grove. They hare outgrown their current leased space and have been looking for a new site on <br />whi6h to construdt a 13,000 square foot shop. They have expressed an interest in Lot 1, Block 1, <br />Gateway North Iddustrial Park, Plat 4. Therefore, we are proposing purchasing the property and, <br />in turn, selling it.~ to DT&E, Inc. for the same amount as the City purchased it. Title will be <br />officially transfe~ed 30 days after the adoption of the authorizing ordinance. <br /> <br />The DT&E, Inc. ~tevelopment is proposed as a tax increment project in order to provide for up <br />front payment of ihe SAC/WAC, trunk charges, and some site improvements. The total proposed <br />TIF. infusion is proposed at $40,000. After capitalizing 2.5 years of interest and running the entire <br />project to a break ~even with 9.75% internal financing, the project pays back by the year 2002. <br /> <br />The Renner acquiSkion is involved because of the utilities. It is proposed that we contract with Mr. <br />Renner to constru~:t the trunks and laterals to the DT&E, Inc. property concurrent with the Ramsey <br />Athletic Club project. We intend to credit the unit cost of this extension against the SAC/WAC and <br />trunk charges otherwise owed by Mr. Renner. <br /> <br />Attached please find: <br /> <br /> 1 ) PrOposed Renner Development A~eement <br /> 2) Proposed Detail Tool and Engineering, Inc. Development Agreement <br /> <br /> 3) Proposed Ordinance to Authorize the Sale of Lot 1, Block 1, Gateway North <br /> In4ustrial Park, Plat 4 to Detail Tool and Engineering, Inc. <br /> <br /> 4) Detail Tool and Engineering, Inc. tax increment calculation. <br /> <br />3'1 <br /> <br /> <br />