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must be justified and must meet State Statute. PSD LLC must demonstrate that "but-for"this assistance,they <br /> cannot move forward with this project. Staff will be working will Ehlers to underwrite PSD LLC financials/ <br /> project pro-forma. The outcome of underwriting this project will determine if, and how much, city subsidy is <br /> justified. <br /> .The City does not need to take on this project(i.e.provide a business subsidy). The City could wait for the <br /> market to naturally develop the new business park. By taking on this project,we are associating the City with <br /> a speculative development. In the event the PSD LLC project isn't successful (i.e.the economy takes a bad <br /> turn), it would look unfavorable for the City, and will likely result in opposition from tax payers. <br /> .By dedicating TIF funding to this project,the City is losing the opportunity to use said funding on other <br /> projects. However,but for this subsidy,the project would likely not happen at all. <br /> Funding Source: <br /> New 9-year TIF District(TIF#16), existing TIF District(TIF#1), and$10,000 fee from PSD LLC. <br /> Recommendation: <br /> Staff is comfortable accepting the PSD LLC business subsidy request application. Staff believes this request needs <br /> to be underwritten and checked against our policies. Staff believes the request made by PSD, from a preliminary/ <br /> high-level perspective, appears to be reasonable for the City to further consider. <br /> NOTE: as mentioned in the background section of this case,the PSD LLC business subsidy request will require the <br /> City make an exception to our business subsidy policy, related to the creation of new jobs. <br /> Action: <br /> MOTION TO: <br /> Recommend the City Council adopt Resolution 417-04-091,to call for a public hearing on June 27, 2017,to <br /> modify Development District 41,to establish TIF District 416 (PSD Business Park A), and to adopt a TIF Plan. <br /> -and- <br /> Direct Staff to formally accept a business subsidy application from PSD LLC and complete underwriting in <br /> preparation of the June 27, 2017 public hearing. <br /> Attachments <br /> PSD Proposal <br /> Resolution 17 04 091 <br /> Process Schedule <br /> PSD Subsidy Narrative <br /> PSD Cover Letter <br /> TIF Run <br /> TIF Background <br /> City Subsidy Policy <br /> Form Review <br /> Inbox Reviewed By Date <br /> Kurt Ulrich Kurt Ulrich 04/07/2017 03:42 PM <br /> Form Started By:Patrick Brama Started On:04/03/2017 01:22 PM <br /> Final Approval Date:04/07/2017 <br />