Agenda - Council - 06/13/2023 - Laserfiche WebLink

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CC Regular Session 6.2. Meeting Date: 06/ 13/2023 By: Sean Sullivan, Community Development Information Title: PUBLIC HEARING: Adopt Resolution #23-126 Approving Business Subsidy and Authorizing Execution of a Tax Increment Financing (TIF) Agreement and Approving Terms of an Interfund Loan; case of Ramsey Properties, LLC Purpose/Background: The purpose of this case is to consider adoption of Resolution #23-126 Approving Business Subsidy and Authorizing Execution of a Tax Increment Financing (TIF) Agreement and Approving Terms of an Interfund Loan for the Ramsey Properties Hilton Home 2 project. Tax Increment Financing Agreement / Public Hearing A Public Hearing is required for the requested business subsidy of $434,511 for the up front land cost write -down and $550,000 on Pay -Go TIF for the reimbursement of site improvements for the project ($984,511 total). Part of the TIF Business Subsidy process involves the authorization of an inter -fund loan which allows the City to reimburse itself through TIF for the land cost write -down ($434,511) and project legal and administrative costs (up to $25,000) plus 5% interest. Approval for the Business Subsidy, the TIF Agreement and Inter -fund Loan are all included in Resolution #23-126. Notification: The Public Hearing notice was published on May 26, 2023 in the Anoka County Herald Observations/Alternatives: Observations: The request for a Business Subsidy in the form of a land write -down of $434,511 (reduced sales price) and request for $550,000 in Site Improvement reimbursement triggers the need for business subsidy analysis which is highlighted below from information provided by Ehlers. This information has been previously shared with the City Council and EDA. Items specific to the requirements of the business subsidy included in the TIF Agreement and other benefits to the community include but are not necessarily limited to the following: . General Project Description and Business Subsidy Requirements . 98 unit, Four Story Hilton Home 2 Hotel with hot breakfast and indoor pool; a Certificate of Occupancy 16 months after Closing. If this is not done, the City may exercise the Right of Re -Entry. . Estimated Tax Assessed Value 7.14M (Minimum Assessment Agreement required) . Estimated Taxes - $202,000 annually . 11 new jobs to be created paying at least $14.75 / hr. . Requirement to operate at location for 5 years . Catalyst project (provides more trips to COR and encourages investment in restaurants/retail) . Strong presence at the entrance to COR and along Sunwood Drive NW • Hotel brand with positive reputation Project Analysis - Public Hearing - Need for Subsidy - TIF Development Agreement As with any Business Assistance project, both Staff and Ehlers have completed analysis determined if the amount