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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Elvig, Pearson, <br />Strommen, and Zimmerman. Voting No: None. Absent: Councilmember Cook. <br /> <br />CO'UNCIL BUSINESS <br /> <br />Case #1: <br /> <br />Public Hearing to Consider Execution of a Business Subsidy Agreement with <br />Shannon Enterprises of North Dakota, LLC <br /> <br />Presentation <br /> <br />Consultant Mike Mulrooney explained recently a development agreement with Shannon <br />Enterprises of North Dakota, LLC has been negotiated with City staff. The project includes the <br />construction of a 3,818 square foot office/warehouse building in the spring of 2004. The <br />building will be located at the intersection of Azurite Street Northwest and 141st Avenue located <br />in Gateway North Industrial Park Plat 2. It is anticipated that the project will create at least six <br />new jobs paying a wage of at least $12 per hour in a two-year period. The County Assessor has <br />established an assessed taxable market value of approximately $372,900 for the project. It is <br />anticipated that the project will generate $11,764 annually in taxes and approximately $6,696 <br />annually in tax capacity. The tax increment generated per year will be approximately $5,101 per <br />year toward the TIF District, which would be used to assist the City with its payment for public <br />improvements and land acquisition costs. The business subsidy granted by the City to the <br />developer under this agreement is $50,000 to underwrite public improvement and redevelopment <br />costs associated with the site. Also under consideration tonight is a contract for private <br />development between the City and Shannon Enterprises of North Dakota, LLC, which spells out <br />additional terms associated with the business subsidy. Staff recommends approval of the <br />business subsidy and agreement. <br /> <br />City Administrator No~nan indicated this is one of the two properties known as the Chies and <br />Morrel properties. These properties were purchased from a CDBG block grant, which is why an <br />emphasis was put on the job creation. <br /> <br />Mark Shmmon, Representative of Shannon Enterprises of North Dakota, LLC, stated they are <br />currently renting space off of Sunfish Lake Boulevard and are excited about having their own <br />facility. <br /> <br />Mayor Gamec closed the regular portion of the City Council meeting at 7:10 p.m. in order to <br />conduct a public hearing. <br /> <br />Public lteariug <br /> <br />Mayor Gamcc called the public hearing to order at 7:10 p.m. <br /> <br />City Council/April 13, 2004 <br /> Page 4 of 33 <br /> <br /> <br />