10-27-2021 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL OCTOBER 27, 2021 granting a business subsidy to Owasso LLC. She reviewed the proposed new project, the terms of the TIF Plan, the TIF District and the Development Agreement. She reported that the project is a 74,500 square foot industrial warehouse facility with construction beginning by May 1, 2022 and estimated completion is December 2022. She noted that the approximate taxable value of the completed project is in the range of $6.4 - $7.1 million. She stated that the development agreement states that the developer would pay all of the project costs upfront and then be reimbursed by the City over a maximum of nine years. She stated that there were a few minor changes to the agreement; one change is the principal amount was increased from $750,000 to $800,000. The City Administrator reviewed the changes that have been made to the Development Agreement since the version that was in the Council packet. Fischer asked Ms. Huot to explain the due diligence that was done for this proposal. Ms. Huot explained that she worked with the Ramsey County Assessor's Office to help find a balance on what the taxable value should be due to the unique market right now and what the future growth would be and the developer's proforma received significant review. The City Administrator noted that there is a low supply and very high demand for industrial property of this type right now, so the estimated market value of the project is expected to be at least the cost of construction. There were no comments from the public. Upon motion by McGraw, seconded by Fischer, the public hearing was closed. , McGraw introduced the following resolution and moved its adoption: RESOL UTION NO. 2 021-10-122 — APPR O VE RESOLUTION ESTABLISHING TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 7-3 WITHINDEVELOPMENT DISTRICT NO. 7AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR; A UTHORIZING AN INTERFUND LOANAND A UTHORIZING EXECUTION OFA DEVELOPMENT AGREEMENT The foregoing resolution was duly seconded by Keis. Ayes (5). Nays (0). Resolution declared adopted. McGraw introduced the following resolution and moved its adoption: RESOL UTION NO. 2021-10-123 — APPROVE PROVIDING A BUSINESS SUBSIDY PURSUANT TO MINNESOTA STATUTES, SECTIONS 116J.993 TO 116J.995, BUSINESS SUBSIDYACT The foregoing resolution was duly seconded by Fischer. Ayes (5). Nays (0). Resolution declared adopted. 2