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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Zimmerman, <br />Anderson, and Kurak. Voting No: None. <br /> <br />The public hearing closed at 7:23 p.m. <br /> <br />Council Business <br /> <br />Mayor Gamec called the regular City Council meeting back to order at 7:23 p.m. <br /> <br />Councilmember Hendriksen stated that he wanted to know what the City gave Systematic <br />Refrigeration, what encumbrances are on the property, and what is the penalty if they fail to meet <br />the job requirements they originally agreed to. <br /> <br />City Attorney Goodrich replied that Systematic Refrigeration received $892,000 in benefits from <br />the City in the form of property and site improvements, that will come back to the City over the <br />TIF District's l 1-year term, as long as property taxes are paid. He also noted that the <br />development agreement has an assessment agreement attached to it stating that the value will not <br />be lower than a set amount and in the event there is a deficiency the developer is required to pay <br />that amotmt back. <br /> <br />Councilmetnber Hendriksen inquired if the second mortgage the City has on the property is in <br />addition to the $892,000. <br /> <br />City Attorney Goodrich replied that the second mortgage is for the money the City received as a <br />grant to loan to Mateski Properties. <br /> <br />Councilme~nber Hendriksen inquired if both agreements are contingent upon the creation of a <br />certain number of jobs. <br /> <br />Economic Development Consultant Mulrooney replied that the development agreement stated <br />that there would be 50 new jobs created in addition to the 38 jobs that already existed. <br /> <br />Counci hnember Hendriksen inquired if the development agreement included the requirement that <br />if the developer falls short on the j ob requirement then a portion of the benefit has to be repaid. <br /> <br />City Attorney Goodrich replied yes. <br /> <br />Economic Development Consultant Mulrooney noted that the total assistance that Mateski <br />Properties received from the City was $892,000, which includes the $300,000 grant from the <br />State. <br /> <br />Councilmember Hendriksen inquired if the developer is required to pay back a portion of the <br />$592,000 if they don't meet the job requirements. <br /> <br />City Council/January 8, 2002 <br /> Page 8 of 27 <br /> <br /> <br />