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CASE # <br /> <br />PUBLIC HEARING TO CONSIDER EXECUTION OF A BUSINESS SUBSIDY <br />AGREEMENT WITH HSHT, LLC (dba ROTARY SYSTEMs, INC.) <br /> By: James E. Norman, City Administrator and <br /> Sean Sullivan, TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Jerry Szykulslci, of HSHT, LLC (dba ROTARY <br />SYSTEMS, INC.), has been negotiated with City staff. This company designs and manufactures <br />rotary unions that are used for the automation of projects and other applications. The project <br />includes the construction of a 30,000 square foot office/warehouse building in the Summer of <br />2004. The building will be located west of Waltec in Sunfish Lake Business Park Second <br />Addition (See Map). It is anticipated that the project will create at least 6 new jobs paying a <br />wage of at least $15.00 per hour in a two-year period. <br /> <br />The County Assessor has established an assessed taxable market value of approximately <br />$1,552,800 for the project. It is anticipated that the project will generate $50,600 dollars <br />annually in taxes and approximately $30,306 annually in tax capacity. The tax increment <br />generated per year will be approximately $16,700 per year toward the TIF District, which would <br />be used to assist the 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 fon~nat except for the dollar amounts specific to the project. <br />Any changes in the land 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 indenmity, construction documents, prohibitions against <br />assigmnents, 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 HSHT, LLC <br /> <br />- and - <br /> <br />Motion to authorize execution of a development agreement with HSHT, LLC (dba Rotary <br />Systems, Inc.), contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Attorney <br /> <br />CC:06/22/04 <br /> <br />-95- <br /> <br /> <br />