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CASE <br /> <br /> PUBLIC HEARING TO CONSIDER EXECUTION OF A <br />BUSINESS SUBSIDY AGREEMENT WITH BASALT PROPERTIES, LLC. <br />By: James E. Norman, City Administrator and <br /> Sean Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Basalt Properties, LLC, a Minnesota Limited Liability Company <br />has been negotiated with City staff. The project includes the construction of approximately 40,000 square <br />foot office/warehouse multi-tenant building the Summer of 2004. The multi-tenant building will be <br />similar to the one constructed by Tom Sauter in Gateway North Industrial Park No. 5. This project <br />satisfies the requirements of the development a~eement with T & G Land dated March 12, 2001 in which <br />3,800,000 in total market value' had t9 be created:priOr.to December 31; 2005. The building will be <br />located west of the T '& G "Land, Inc. (Tom Sauter) building on 141st Avenue'NW. in Gateway North <br />Industrial Park No. 5. It is anticipated that the project Will create at least 4 new jobs paying a wage of at <br />least $13.00 per hour in a two-year period. <br /> <br />The project is expected to achieve a taxable market value of approximately $1,687,800. It is anticipated <br />that the project will generate $57,779 dollars annually in taxes and approximately $33,006 annually in tax <br />capacity. The tax increment generated per year will be approximately $28,793 per year toward the TIF <br />District, which would be used to assist the City with its payment for public improvements and land <br />acquisition costs. <br /> <br />The development agreement for this project is in excess of a 40-page document. The City has utilized the <br />consistent and standard format except for the dollar amounts specific to the project. Any changes in the <br />land use are 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 deal with <br />indemnity, construction documents, prohibitions against assignments, .and transfer to the agreements to <br />pay deficiencies. The entire agreement is available at City Counci'l request. <br /> <br />Council Action: <br /> <br />Motion to authorize business subsidy agreement with Basalt Properties, LLC. <br /> <br />- and - <br /> <br />Motion to authorize execution of a development agreement with Basalt Properties, LLC, contingent upon <br />review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC:04/06/22 <br /> <br />-107- <br /> <br /> <br />