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CASE <br /> <br /> PUBLIC HEARING TO CONSIDER EXECUTION OF <br />BUSINESS SUBSIDY AGREEMENT WITH RIVERSIDE MANUFACTURING, INC. <br /> <br />By: Sean M. Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />Recently a development agreement with Riverside Manufacturing, Inc. has been negotiated with <br />City staff. The project includes the construction of a 30,000 square foot office/manufacturing <br />building in the Summer of 2006. The building will be located West of Sunfish Lake Boulevard <br />NW adjacent to Sunfish Lake Business Park in TIF District No. 10. It is anticipated that the <br />project will create at least 6 new jobs paying a wage of at least $15.00 per hour in a two-year <br />period. <br /> <br />The County Assessor has established' an assessed taxable market value of approximately <br />$1,800,000 for the project. It is anticipated that the project will generate $59,000 dollars <br />annually in taxes and approximately $35,250 annually in tax capacity. The tax increment <br />generated per year will be approximately $18,000 per year toward the TIF District, which would <br />be used to assist the City with its payment for public improvements associated with Sunfish Lake <br />Business Park as well as the land cost write-down. <br /> <br />The development agreement for this project is in excess of a 40-page document. The City has <br />utilized the consistent and standard format except for the dollar amounts specific to the project. <br />Any changes in the land use are passed through to the City Attorney for his review. Given the <br />above, staff has attached the pertinent phges of the agreement for Council review. As CounciI is <br />aware, the other sections deal with indemnity, construction documents, prohibitions against <br />assignments, and transfer to the agreements to pay deficiencies. The entire agreement is <br />available at City Council request. <br /> <br />Council Action: <br /> <br />Motion to authorize business subsidy agreement with Riverside Manufacturing, Inc.. <br /> <br />Motion to authorize execution of a development agreement with Riverside Manufacturing, Inc. <br />contingent upon review by the City Attorney. <br /> <br />Reviewed by: <br />Community Development Director <br /> <br />Copies also distributed to: <br />City Attorney <br /> <br />CC:04.25.06 <br /> <br />-175- <br /> <br /> <br />