Laserfiche WebLink
CC Regular Session 6. 2. <br />Meeting Date: 06/25/2019 <br />By: Sean Sullivan, Community <br />Development <br />Information <br />Title: <br />PUBLIC HEARING: Adopt Resolution #19-143 Establishing TIF District 17 and Resolution #19-144 Approving a <br />TIF Agreement and Approving a Business Subsidy Request, Case of SLP EX, LLC and AMP EX, LLC (Delta <br />ModTech) <br />Purpose/Background: �</ <br />PURPOSE v <br />The purpose of this case is to consider multiple actions regarding the Delta Motiff'I IF Business Assistance <br />Application which was received by Staff in March 2019 and reviewed by the Et the June 13 meeting. This <br />request is specifically related to Delta ModTech's proposed 210,000 squar 'manufacturing facility <br />1. TIF PLAN AND INTERFUND LOAN: Consider support of th Vhed Resolution #19-143 Approving <br />the Modification to the Development Program for Developme - ► s rict No. 1 and Establishing Tax <br />Increment Financing District No. 17: Delta ModTech. This gir..II . oes not award TIF but is a step in the <br />process that allows the City to award TIF. Awarding the ,i 74request is covered in Step 2 below. Some <br />highlights included in the TIF Plan: <br />a. Geographical boundary of Development Di 91Q.o. 1 and TIF District 17 <br />b. Statutory requirements relating to type of`TIDistrict being created, duration of TIF District and <br />impacts to future tax base. This distric s Msidered an Economic Development District. Staff will <br />provide a brief overview of types of istricts at the meeting. <br />c. Provision of a a not -to -exceed b e number ($1,317,235) for eligible development activities to take <br />place within the proposed TIF ct 17 that can be financed ($972,000 in business assistance, <br />remainder for uses such as inistration of district). <br />d. Findings and "But For" 0 Appendix C) documenting that the TIF plan and project is in compliance <br />with Minnesota Stags. <br />e. The TIF Plan doe t include inter fund loan language. However, Resolution #19-143 establishes an <br />"ability" for th to utilize an inter fund loan to pay for up front administrative/legal costs <br />associated AN th District #17; and repay said inter fund loan with TIF District #17 proceeds. The <br />City is not borrowing any money in this request. It is set up as a 'pay as you go' package, meaning <br />assistance is only provided if tax increment is created. <br />2. (2) TIF AGREEMENT: Consider support of the attached Resolution #19-144 authorizing execution of a <br />Tax Increment Financing (TIF) Agreement: Delta ModTech. This is the actual TIF award for SLP EX, LLC <br />and AMP EX, LLC and Delta Industrial Services, Inc. ($972,000 Pay -Go TIF Note). This document includes <br />all terms and conditions for this specific deal. <br />BACKGROUND (project) <br />The project consists of: <br />A. The purchase of 43 acres of land from Hageman Holdings for the Delta ModTech site/expansion and further <br />development of Bunker Lake Business Park. The estimated total cost for this step is $3.6M. Assistance is <br />only provided the the area related to the Delta ModTech project site, not areas for future development. <br />B. Within the larger 43-acre parcel, the Developer desires to plat 16.03 acres to construct a 210,000 square foot <br />manufacturing building to lease to Delta ModTech. The estimated total cost for the Delta ModTech first <br />building is $16M. <br />