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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> FROM: Chris Heineman, City Administrator <br /> <br />DATE: October 26, 2018 <br /> <br />RE: Proposed Economic Development Tax Increment Finance District <br /> <br /> <br />ACTION REQUESTED: <br />The City Council is asked to two actions related to a proposed Economic Development Tax <br />Increment Finance District: <br />a. Approve a Resolution Calling for a Public Hearing on November 28, 2018 at 7:30 p.m. <br />on the Modification to Development District No. 7 and the Establishment of Tax <br />Increment Financing District No. 7-2 <br />b. Consider Calling a Workshop on Workshop on Wednesday, November 14, 2018 at 6:00 <br />p.m. to Discuss TIF District 7-2 <br /> <br />The City Council has held three separate work session meetings related to discuss a request for <br />business assistance for a proposed economic development project in Little Canada. The proposed <br />development consists of the acquisition of the approximately 200,000 square-foot Slumberland <br />distribution facility located in the City at the corner of 35E and 694 on two parcels of land. The <br />District is being created to facilitate an expansion of the company’s food processing and <br />distribution capabilities to accommodate growth and meet customer demand. <br /> <br />The overall project will relocate approximately 400 existing jobs to Little Canada and create 160 <br />net new positions over the next five years. The project will require a $25M investment to <br />acquire the existing facility, up-fit the building to food-grade standards and furniture, fixtures, <br />equipment and IT. The proposed improvements include approximately 60,000 SF of refrigerated, <br />cooler and freezer space; 91,000 SF of storage, dock and maintenance; 26,000 SF of processing; <br />and 20,000 SF of office space. <br /> <br />The developer plans to purchase the existing building and anticipates a total of $14,706,250 in <br />improvements. The current taxable market value of the property is $8,427,500 ($1,753,500 for <br />land and $6,674,000 for the building). The Ramsey County Assessor indicated that the property <br />value will increase by $1,500,000 to $2,000,000 once the upgrades have been completed. <br /> <br />The project has received a Minnesota Job Creation Fund (JCF) award through the MN <br />Department of Employment and Economic Development. A copy of the award letter is attached <br />for your review. Also attached is a copy of the proposed schedule and Resolution.