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CASE <br /> <br /> PUBLIC HEARING TO CONSIDER EXECUTION OF A <br />BUSINESS SUBSIDY AGREEMENT WITH O'BRIEN PROPERTIES OF <br />MONTICELLO, LLC <br /> By: Michael Mulrooney, Development Consultant <br /> Scan Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Loren O'Brien, of O'BRIEN PROPERTIES OF <br />MONTICELLO, LLC, has been negotiated with City staff. The project includes the construction <br />of a 34,000 square foot office/warehouse building in the Spring of 2004. The building will be <br />located east of Building Fasteners in AEC Energy Park Third Addition. This project is <br />considered Phase II of the project that was started in 1998. The Phase I project consisted of a <br />31,000 S.F. building. It is anticipated that the Phase II project will create at least 7 new jobs <br />paying a wage of at least $12.00 per hour in a two-year period. <br /> <br />The estimated taxable market value of the Phase II project is approximately $1,400,000. It is <br />anticipated that the project will generate $47,688 dollars annually in taxes and approximately <br />$27,250 annually in tax capacity. The tax increment generated per year will be approximately <br />$24,100 per year toward the TIF District, which would be used to assist the City ;vith its <br />payment for public improvements and land acquisition costs. <br /> <br />The development agreement for this project is in excess of a 40-page document and the <br />amendment to that agreement is attached. The City has utilized the consistent and standard <br />format except for the dollar amounts specific to the project. Any changes in the land use are <br />passed through to the City Attorney for his review. Given the above, staff has attached the <br />pertinent pages of the agreement for Council review. As Council is aware, the other sections <br />deal with indemnity, construction documents, prohibitions against assignments, and transfer to <br />the agreements to pay deficiencies. The entire agreement is available at City Council request. <br /> <br />Council Action: <br /> <br />Motion to authorize business subsidy agreement with O'BRIEN PROPERTIES OF <br />MONTICELLO, LLC.. <br /> <br />- and - <br /> <br />Motion to authorize execution of the FIRST AMENDMENT TO CONTRACT FOR PR1VATE <br />DEVELOPMENT with O'BRIEN PROPERTIES OF MONTICELLO, LLC., contingent upon <br />review by the City Attorney. <br /> <br />Reviewed by: <br />City Attorney <br /> <br />CC:05/11/04 <br /> <br /> <br />