Agenda - Council - 05/09/2017 - Laserfiche WebLink

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Councilmember Riley said there appears to be substantial money for plans and supported continuing to make progress. Motion by Councilmember Riley, seconded by Councilmember Johns, to adopt Resolution #17- 04-100 Authorizing Plans and Specifications for Improvement Project #17-09, Bunker Lake Boulevard Utilities Extension with direction that two opportunities for progress review will occur before contracts are awarded. Motion carried. Voting Yes: Acting Mayor LeTourneau, Councilmembers Riley, Johns, Kuzma, Shryock, and Williams. Voting No: None. Absent: Mayor Strommen. 7.08: Consider PSD LLC Business Park Proposal: Accept Business Subsidy Request Application and Call for Public Hearing Asst. City Administrator/Economic Development Manager Brama reviewed the staff report and recommendation of the EDA and staff to formally accept the PSD LLC business subsidy request application, begin the process, and call for a public hearing. The EDA is also interested in the results from the financial underwriting process from Ehlers & Associates. He stated staff believes the request made by PSD, from a preliminary/high-level perspective, appears to be reasonable for the City to further consider. It was noted the PSD LLC business subsidy request will require the City to make an exception to its business subsidy policy related to the creation of new jobs. Asst. City Administrator/Economic Development Manager Brama reviewed purchase of the 45 acres south of Highway 10 for the business park and master development and outlined the concept of seven buildings for construction to begin in 2017. He reviewed the mass site preparation improvements totaling $4.24 million and 60,000 square feet of spec industrial building totaling $5.4 million in construction and soft costs. He stated PSD LLC is requesting City funding of $225,000 for the first portion of the internal roadway and then TIF assistance of for nine years for construction of the spec industrial building. He reiterated approval of the request would not grant funding awards or approvals but allows the Council to begin the public process for a decision in the future. Councilmember Kuzma inquired how the TIF would work for taxes for nine years. Jason Aarsold, Ehlers and Associates, explained the nine-year district so when the building is constructed the tax increase would be captured to provide assistance to the developer of $250,000 over nine years. Motion by Councilmember Kuzma, seconded by Councilmember Williams, to adopt Resolution #17-04-091 calling for a public hearing by the City Council on the proposed adoption of a modification to the development program for Development District No. 1, the proposed establishment of Tax Increment Financing District No. 16 (PSD Business Park A) therein and the adoption of a Tax Increment Financing Plan therefor, and the proposed granting of a business subsidy, and direct staff to formally accept the business subsidy application from PSD LLC and complete underwriting in preparation of the June 27 2017, public hearing. City Council / April 25, 2017 Page 9 of 12