Laserfiche WebLink
CASE <br /> <br />PUBLIC HEARING TO CONSIDER EXECUTION OF A BUSINESS SUBSIDY <br />AGREEMENT WITH SHANNON ENTERPRISES OF NORTH DAKOTA, LLC <br />By: James E. Norman, City Administrator and <br /> Scan Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Shannon Enterprises of North Dakota, LLC has been <br />negotiated with City staff. The project includes the construction of a 3,818 square foot <br />office/warehouse building in the Spring of 2004. The building will be located at the intersection <br />o f Azurite Street Northwest and 141st Avenue located in Gateway North Industrial Park Plat 2. It <br />is anticipated that the project will create at least 6 new jobs paying a wage of at least $12.00 per <br />hour in a two-year period. <br /> <br />The County Assessor has established an assessed taxable market value of approximately <br />$372,900 for the project. It is anticipated that the project will generate $11,764 dollars annually <br />in taxes and approximately $6,696 annually in tax capacity. The tax increment generated per year <br />will be approximately $5,101 per year toward the TIF District, which would be used to assist the <br />City with its payment for public improvements and land acquisition costs. <br /> <br />The development agreement for this project is in excess of a 40-page document. The City has <br />utilized the consistent and standard format except for the dollar amounts specific to the project. <br />Any changes in the laud use are passed through to the City Attorney for his review. Given the <br />above, staff has attached the pertinent pages of the agreement for Council review. As Council is <br />aware, the other sections deal with indemnity, construction documents, prohibitions against <br />assignments, and transfer to the agreements to pay deficiencies. The entire agreement is <br />available at City Council request. <br /> <br />Council Action: <br /> <br />Motion to authorize business subsidy agreement with Shannon Enterprises of North Dakota, <br />LLC <br /> <br />- and - <br /> <br />Motion to authorize execution of a development agreement with Shannon Enterprises of North <br />Dakota, LLC, contingeut upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br />Economic Development / TIF Specialist <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC:04/13/04 <br /> <br /> <br />