Agenda - Council - 07/27/2004 - Laserfiche WebLink

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CASE # PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH SHARP AND ASSOCIATES, LLC. By: James E. Norman, City Administrator and Sean Sullivan, Economic Development / TIF Specialist Background: Recently a development agreement with Sharp and Associates LLC. has been negotiated with City staff. The project includes the construction of 41,022 square foot of self storage buildings in the Fall of 2004. The buildings will be located in Park 67 Industrial Park south of Bunker Lake Boulevard. This project is located in a redevelopment area in TIF District No. 2. Due to limitation in the soils on this site the slab on grade design of this project is the only cost effective way to get this site developed. The assistance being provided will focus primarily on getting the site buildable and to provide quality design and screening. This development will provide quality screening and improve the curb appeal of Bunker Lake Boulevard. It is anticipated that the project will create at least 3 new jobs paying a wage of at least $12.00 per hour in a two-year period. The County Assessor has established an assessed taxable market value of approximately $1,400,000 for the project. It is anticipated that the project will generate $47,712 dollars annually in taxes and approximately $27,250 annually in tax capacity. The tax increment generated per year will be approximately $22,000 per year toward the TIF District, which would be used to assist the City with its payment for public improvements. The dcvelopmcnt 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, the 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 Sharp and Associates, LLC. - and - Motion to attthorize execution of a development agreement with Sharp and Associates, LLC., contingent upon review by the City Attorney. Reviewed by: City Administrator Economic Development / TIF Specialist Finance Officer Copies also distributed to: City Attorney CC: 07/27/04