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Motion by Mayor Garnet, seconded by Councilmember Anderson, to authorize a business <br />subsidy agreement with Oldcastle Precast, Inc. (AMCOR) and execution of a development <br />agreement, contingent upon review by the City Attorney. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Anderson, Hendriksen, Kurak, <br />and Zimmennan. Voting No: None. <br /> <br />Case #3: <br /> <br />Public Hearing to Consider Execution of Business Subsidy Agreement with <br />Pheoll Fastening Systems <br /> <br />Mayor Gamec closed the regular portion of the City Council meeting at 7:57 p.m. in order to call <br />the public hearing to order. <br /> <br />Public Hearing <br /> <br />Mayor Gamec called the public hearing to order at 7:57 p.m. <br /> <br />Presentation <br /> <br />City Administrator Norman stated that the proposed development agreement with Pheoll <br />Fastening Systems has been recently negotiated with City staff. The company currently operates <br />in Minneapolis and is proposing to move their facility to a 4.5 acre site located in the Gateway <br />North Industrial Park. The project includes the construction of a 48,700 square foot facility in <br />the spring of 2001. The company is an engineering and distributor of manufacturing parts for <br />fastening systems that desires to move closer to an employee base in the northwest metropolitan <br />area. It is anticipated that the project will increase its employees from the current staffing of 50 <br />employees to an additional ten new employees in a two year period. The company currently <br />pays an average of just under $12.00 an hour per employee. Upon completion of the platting <br />process, the County Assessor will establish an original tax capacity for the parcel of <br />approximately $2,713. It is anticipated that the project will be valued at approximately $2 <br />million dollars and will generate approximately $66,500 annually in tax capacity, and <br />approximately $44,000 in tax increment per year toward the TIF District, which would be used to <br />assist the City with its payment in bonding for land acquisition and public improvements. <br /> <br />Economic Development Consultant Mike Mulrooney, stated that the types of jobs that Pheoll <br />Fastening Systems will create is exactly the type of positions the City is looking for. <br /> <br />Citizen Inpnt <br /> <br />There was none. <br /> <br />Motion by Councilmember Zimmerman, seconded by Councilmember Kurak, to close the public <br />hearing. <br /> <br />City Council/January 23, 2001 <br /> Page 11 of 34 <br /> <br /> <br />