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REQUEST FOR AUTHORIZATION FOR EXECUTION OF A DEVELOPMENT AGREEMENT WITH PARABODY/LIFE FITNESS By: James E. Norman, City Administrator Background: The proposed TIF development agreement is with ParaBody, dba Life Fitness, which will be located at its current site at 14150 Sunfish Lake Boulevard NW. ParaBody is a manufacturer of aerobic fitness systems and is a division of Brunswick Corporation of Franklin Park, Illinois. The ParaBody expansion project will be a 208,016 square foot addition to the existing building bringing the total building size to the level of 264,664 square feet. The company will add 120 production and 20 office employees in the Ramsey location as a result of the project. The company also expects to add a total of 200 jobs within a four-year period. Lifefitness currently employs 165 people at the Ramsey location. The project will be included as part of re-development Tax Increment Financing District #2, which will continue to exist through the year 2012. The development agreement for this project is in excess of 30 pages. The City has utilized a standard format except for the dollar amounts specific to this project. Any changes in language are passed through the City Attorney for his review Given the above, staff has attached pertinent information about the agreement and a letter from Economic Development Consultant Michael J. Mulrooney. Council will be asked to authorize staff to complete specific contract language in regard to the tax increment finance development agreement with ParaBody. The entire agreement is available for Council review at completion of the negotiated settlement. Council Action: Motion to authorize execution of the TIF development agreement with ParaBody, dba as Life Fitness, a division of Brunswick Corporation, contingent upon completion of specific contract language by the City Attorney. Reviewed by: City Administrator City Attorney Finance Officer Economic Development Consultant CC: 04/27/99 jo/L~efitness