Agenda - Council - 05/25/2004 - Laserfiche WebLink

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CASE # ~, PUBLIC HEARING TO CONSIDER EXECUTION OF A BUSINESS SUBSIDY AGREEMENT WITH ROTARY SYSTEMS, INC. By: James E. Norman, City Administrator and Scan Sullivan, TIF Specialist Background: Reccmly a development agreement with Jerry Szykulski, of ROTARY SYSTEMS, /NC.., has been negotiated with City staff. The project includes the construction of a 30,000 square foot office/warehouse building in the Summer of 2004. The building will be located west of Waltec in Sunfish Lake Business Park Second Addition. It is anticipated that the project will create at least 6 new jobs paying a wage of at least $15.00 per hour in a two-year period. Thc County Assessor has established an assessed taxable market value of approximately $1,440,000 for the project. It is anticipated that the project will generate $46,900 dollars annually in taxes and approximately $28,050 annually in tax capacity. The tax increment generated per year will be approximately $16,200 per year toward the TIF District, which ;vould be used to assist the City with its payment for public improvements and land acquisition costs. The development agreement for this project is in excess of a 40-page document. The City has utilized thc consistent and standard format except for the dollar amounts specific to the project. Any changes in the land use are passed through to the City Attorney for his review. Given the above, staff' has attached the pertinent pages of the agreement for Council review. As Council is aware, thc other sections deal with indemnity, construction documents, prohibitions against assignments, and transfer to the agreements to pay deficiencies. The entire agreement is available at City Council request. Council Action: Motion to authorize business subsidy agreement with Rotary Systems, Inc... - aha - Motion to authorize execution of a development agreement with Rotary Systems, Inc., contingent upon review by the City Attorney. Reviewed by: City Attorney CC:05/25/04