01-23-2019 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JANUARY 23, 2019 *APPROVAL OF THE VOUCHERS; *CALL FOR A WORKSHOP ON WEDNESDAY, FEBR UARY 27,2 019 AT S: 00PHFOR A SESSION WITH THE URBAN LAND INSTITUTE The foregoing resolution was duly seconded by Montour. Ayes (5). Nays (0). Resolution declared adopted. DEVELOPMENT The City Administrator explained Bix Produce has confirmed that they AGREEMENT will be purchasing 3060 Centerville Road, the current Slumberland FOR BIX REAL facility, and will be moving their business from St. Paul to Little Canada. ESTATE He stated that on November 28, 2018, the City Council adopted a HOLDINGS, LLC resolution approving a modification to Development District No. 7 and establishment of Tax Increment Financing District 7-2. He stated that since then staff has worked on a development agreement for this project, which outlines the legal requirements of the City and Developer related to TIF District 7-2. The City Administrator explained that the costs for all site improvements will be paid by the developer, and the City of Little Canada will reimburse the developer from property tax payments by the developer based on the increased property value as outlined in the TIF Note. He stated that the TIF Note shall terminate prior to the final payment date of February 1, 2028, when the payments of principal and interest on the TIF Note equal $190,615. The City Administrator explained that the development agreement states that the tenant, BIX Produce Company, must create at least 18 full, time jobs at an hourly wage and benefits totaling of at least $12.35 per hour plus benefits within two years. If the job goals are not met, the Developer must repay all of the Business Subsidy to the City or if the job goals are only met in part, the Developer must repay a portion of the business subsidy. The City Administrator explained that this project will relocate approximately 400 existing jobs and create 160 net new positions over the next five years. He stated the project will require an investment of approximately $25 million to acquire the existing 207,000 square foot facility, up -fit the building to food -grade standards and furniture, fixtures, equipment and IT. 2