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August 23, 1983 <br /> <br />TO: Mayor and Cou~cilme~rs <br /> <br />4 <br /> <br />1~0~ Ctt~ P~hinistrator <br /> <br />4 <br /> <br />~conomic Develolment <br /> <br />4 <br /> <br />Rnclosure: (1) City of Princeton's letter dated August 1, 1983 containing <br /> economic development package offer to T. U. International <br /> <br />4 <br />4 <br />4 <br />4 <br /> <br />(2) Tax increment financing - State law- provides for this <br /> particular program <br /> <br />(3) Industrial Revenue Bond <br /> <br />(4) Information book on the Urban Development Action Grant <br /> <br />(5) Federal Register which lists cities in Minnesota that are <br /> eligible for Urban Development Action Grants <br /> <br />(6) Draft discussion statement on Metro Development Framework <br /> Proposed Interim Economic Policies <br /> <br />4 <br />4 <br /> <br />] <br /> <br /> I <br /> <br />The question was asked at the special City Council meeting on August 15, <br />1983 as to why T. U. International (formerly Dickenson Bus Lines) moved <br />to Princeton, Minnesota instead of developing their property here in the <br />City of Ramsey. The following will try to explain why it was financially <br />more prudent for this industry to relocate in Princeton in lieu of expanding <br />their present site in the City of Ramsey. <br /> <br /> a) Benefits for T. %U. in relocating in the City of Princeton <br />- Enclosure (1) contains the financial package that was offered to T. <br />U. to relocate in the City of Princeton which are as follows: <br /> <br /> 1) Tax Increment Financing - This program provided for <br />T. U. to acquire ten plus acres of land with utilities (water, sanitary <br />sewer, streets and gas, etc.) for a total cost of $1,000. This land value <br />however, was appraised at $150,000 which in turn allowed the-above firm <br />to apply this to the total project value which then allowed for a larger <br /> <br />Page 1 of 6 <br /> <br /> <br />