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CASE # <br /> <br /> AMENDMENT TO BUSINESS SUBSIDY AND <br />DEVELOPMENT AGREEMENT WITH HSHT, LLC (dba ROTARY SYSTEMS, INC.) <br />By: William Goodrich, City Attorney and <br /> Sean Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />Recently a development agreement with Jerry Szykulski, of HSHT, LLC (dba ROTARY <br />SYSTEMS, INC.), was negotiated with City staff and adopted by City Council on June 22, 2004. <br />The terms of the agreement called for $115,000 in assistance and the creation of 6jobs paying at <br />least $15.00/hr. This company designs and manufactures rotary unions that are used for the <br />automation of projects and other applications. The project includes the construction of a 30,000 <br />square foot office/warehouse building in the Summer of 2004. The building will be located west <br />of Waltec in Sunfish Lake Business Park Second Addition (See Map). <br /> <br />Necessary soil corrections relating to the site have lead to a re-opening of negotiations. Staff <br />looked at bids taken from at least 5 contractors and was confident that the price given by the <br />builder was reasonable. City Staffhas reached an agreement to rectify the soil issues by raising <br />the assistance by $40,000 for a total of $155,000 to accommodate the added project cost to be <br />incurred by HSHT LLC. It is now anticipated that the project will create at least 7 new jobs, an <br />increase of 1, paying a wage of at least $15.00 per hour in a two-year period The Development <br />Agreement has been amended to reflect these changes. <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 format 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, thc other sections deal with indemnity, construction documents, prohibitions against <br />assignments, 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 change <br /> <br />- and - <br /> <br />Motion to authorize execution of revised development agreement with HSHT, LLC (dba Rotary <br />Systems, Inc.), contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br />City Administrator <br /> <br />CC:07/13/04 <br /> <br /> <br />