Agenda - Economic Development Authority - 08/12/2021

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Economic Development Authority (EDA) Meeting Date: 08/12/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 2. Title: Consider Recommendation to Approve Establishment of TIF District 18, TIF Plan, and TIF Agreement; Case of Oppidan Purpose/Background: The purpose of this case is to consider multiple actions related to the Ramsey Industrial Owner LLC (owner) and Oppidan Incorporated (developer) industrial project proposal, herein referred to collectively as the Developer. Please note that this case does not award financial assistance as the City Council has that authority. This case is simply to formulate a recommendation to the City Council for action relating to the approval of TIF plan, TIF Agreement and a business subsidy in the form of Pay -go Tax Increment Financing (TIF). STEP 1 (this case) Consider Recommendation to City Council to approve the creation of TIF District # 18 (Oppidan Industrial). Approval would include: • Approving the Modification to the Development Program for Development District No. 1 • Establishing Tax Increment Financing District No. 18: (Oppidan Industrial) within Development District No. 1 • Approving the Tax Increment Financing Plan. The TIF plan outlines the, boundary of the district, TIF eligible expenses/costs and tax impacts (tax base and taxing jurisdictions). The TIF Plan outlines how the project follows statutory requirements for creation of the TIF District. STEP 2 (this case): Consider recommendation that the City Council approve a Tax Increment Financing (TIF) Agreement. This includes the award of a business subsidy of $1,172,000. The award would require the creation of 100 new jobs onsite with minimum wages of $17.50 or greater per hour. The TIF Agreement will include the proposed business subsidy, statutory requirements and a Tax Increment Financing Pay -Go Note with 4.5% interest. STEP 3 (future City Council Case - August 24, 2021): Council Approval. The City Council is tentatively scheduled to hold a Public Hearing to consider approval of this business subsidy on August 24, 2021, based on EDA recommendations. and the following actions; • Approving the Modification to the Development Program for Development District No. 1 • Establishing Tax Increment Financing District No. 18: (Oppidan Industrial) within Development District No. 1 • Approving the Tax Increment Financing Plan. The TIF plan outlines the, boundary of the district, TIF eligible expenses/costs and tax impacts (tax base and taxing jurisdictions). The TIF Plan outlines how the project follows statutory requirements for creation of the TIF District. • Approval of TIF Agreement (business subsidy) with Ramsey Industrial Owner LLC (Oppidan, Inc.) BACKGROUND (project) The project consists of: (A) the purchase of 43 acres of land from Hageman Holdings for Oppidan, Inc and further development of Bunker Lake Business Park. The estimated total cost for this step is $4.05M (B) within the larger 43-acre parcel, the Developer desires to develop 3 industrial speculative buildings totaling