10-27-2021 Council Packet - Laserfiche WebLink

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1. The proposed TIF District is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12, the specific basis for such determination is set forth in Section J of the TIF Plan. 2. The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The reasons for such determination are set forth in Section J(2) of the TIF Plan. 3. In the opinion of the City Council, the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The reasons supporting this finding are set forth in Section J(2) of the TIF Plan. 4. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Section J(4) of the TIF Plan. 5. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise. The reasons supporting this finding are set forth in Section J(3) of the TIF Plan. 6. Section J of the TIF Plan is incorporated herein by reference. Terms of TIF Agreement: • Developer is Atlas Real Estate Management • Tenant is Dart Advantage Warehousing • Developer agrees to build the Project substantially in the form of the approved final development plan and estimated to cost $6,480,073 • Commence construction of the project in late 2021/early 2022 and complete by December 31, 2022 • Establishment of Economic Development TIF District o Pledge 85% annual tax increment generated for reimbursement of TIF eligible costs ▪ Developer will receive up to $757,252 Pay-As-You-Go TIF Note at a 0% interest rate ▪ City collection term of increment approximately 9 years with developer payments over same 9 years ▪ First payment August 1, 2024 and final payment February 1, 2033 • City will issue Pay-As-You-Go TIF Note to the Developer o Developer pays for upfront development costs o TIF increment provided as reimbursement to Developer for TIF-eligible costs ▪ Site improvements include Subsoils, Grading, and Environmental Remediation o Reimbursement to Developer of available increment on semi-annual basis • Business Subsidy Act Requirements (Minnesota Statutes, Section 116J.993 through 116J.995): o In accordance with the City’s business subsidy policy, Developer shall create 5 full time equivalent jobs with an average hourly wage of $30 at the Property within two years upon the issuance of a certificate of occupancy for the Minimum Improvement by the City. o The Developer must maintain operations within the City for 5 years. o Failure to comply with these requirements will trigger repayment of the business subsidy received by the Developer in accordance with Minnesota Statutes, Section 116J.993 through 116J.995, as amended. Repayment will be pro-rated for partial satisfaction).