Agenda - Council - 11/13/2007 - Laserfiche WebLink

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CASE # , PUBLIC HEARING TO CONSIDER EXECUTION OF BUSINESS SUBSIDY AGREEMENT WITH. DIAMOND TEAM PROPERTIES, LLC. By: Sean M. Sullivan, Economic Development Coordinator Background: A development agreement with Diamond Team Properties, LLC has been negotiated with City staff. The project includes the. construction of a 50,406 square foot office/manufacturing building to be complete by August of.2008. The building will be located. on the newly platted Lot 2; Block 1, Sunfish Lake Business Park Fourth Addition in TIF District No. 10. The company currently has 50 employees and has facilities in Blaine and St. Louis Park.. It is anticipated that the project will create at least 12 new jobs paying a wage of at least $14.00 per hour in a two-year period. The proposed land cost write down subsidy is $300,000 and this subsidy meets the job creation criteria of one job per $25,000 of assistance set forth by the City Council. The proposed~assistance package has been recommended by the Ramsey Economic Development, Authority. The County Assessor has estimated an assessed taxable market value of approximately $2,980,000 for the. project. It` is anticipated that the project will generate $87,000 dollars annually in taxes and approximately $59,000 annually in tax capacity. The tax increment generated per year will be approximately $30,000 per year toward the TIF District, which would be used to assist the City with its payment for public improvements associated with Sunfish Lake Business Park as well as the land cost write-down. The development agreement for this project is in excess of a 40-page document. The .City has utilized the consistent and standard format except for the dollar amounts specific to the project. Any changes in the land use are passed through to the City Attorney for his review. Given the above, staff has attached the pertinent pages of the agreement for Council review. As Council is aware, the other sections deal with indemnity, construction documents, prohibitions against assignments, and transfer to the agreements to pay deficiencies. The entire agreement is available at City Council request. Also attached are the pertinent minutes of the EDA discussion regarding the EDA recommendation. Funding Source: Tax Increment Financing District No. 10 Council Action: Motion to authorize business subsidy agreement with Diamond Team Properties, LLC. - and. - Motion to authorize execution of a development agreement with Diamond Team Properties, LLC., contingent upon review by the City Attorney. Reviewed by: Community Developm n D' for City Administrator CC:11.13.07 -215-