Agenda - Council - 12/14/2004 - Laserfiche WebLink

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CASE # PUBLIC HEARING TO CONSIDER EXECUTION OF A BUSINESS SUBSIDY AGREEMENT WITH ZERO ZONE REFRIGERATION, LLC By: James E. Norman, City Administrator and Sean Sullivan, Economic Development / TIF Specialist Background: Recently a development agreement with Zero Zone Refrigeration, LLC has been negotiated with City staff. The project includes the construction of an expansion of up to 100,000 square foot office/manufacturing building to be completed by December 31, 2008. The building will be located at the intersection of 140th Avenue NW and Radium Street located in Business Park 95 Second Addition. It is anticipated that the project will create at least 14 new jobs paying a wage of at least $14.00 per hour in a two-year period. The County Assessor will establish an assessed taxable market value when the project is completed. It is anticipated that the project will generate $82,600 dollars annually in taxes and approximately $47,250 annually in tax capacity based on a 60,000 square foot project size. The tax increment generated per year will be approximately $38,600 per year toward the TI]7 District, which would be used to assist the City with its payment for public improvements and land acquisition costs. The TIF Agreement is a Pay-as-you-go deal which means that the Developer will only be reimbursed costs based on the increment the expansion produces. The development agreement for this project is in excess of a 40-page document. The City has utilized the consistent and standard format except for the dollar amounts specific to the project and the Pay-as you-go method of TIF Financing. 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 Zero Zone Refrigeration, LLC - and - Motion to authorize execution of a development agreement with Zero Zone Refrigeration, LLC, contingent upon review by the City Attorney. Reviewed by: City Administrator Economic Development / TIF Specialist Copies also distributed to: City Attorney CC:I 2/14/04