08-14-2000 EDA Packet - Laserfiche WebLink

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AGENDA ITEM 3 STAFF ORIGINATOR: Mary Alice Divine DATE: 8/14/00 TOPIC: Public Hearing on the proposed business subsidy to Marmon/Keystone Vote Required: Simple Majority BACKGROUND: Marmon/Keystone has requested tax increment financing (TIF) assistance in the amount of $322,242 for the purpose of constructing an 80,000 square foot distribution facility in the Apollo Business Center. The company has been in business for 90 years as an entity, with a Minnesota location for the past four years as a distributor of tubing and piping, mainly for the agricultural industry. The local distributor currently employs 11, including warehouse, drivers, office and sales. The company has committed to hiring at least four new employees at no Tess than $15 per hour, plus benefits, which include medical, sick leave and vacation. This is well above the minimum established in the EDA's business subsidy requirement. The proposed facility will have a minimum market value of $3,152,600 for a total of $145,509 in annual taxes (based on 2000 dollars). According to the Minnesota Business Subsidy law, the EDA must hold a public hearing before granting a subsidy that exceeds $100,000. In addition to increasing the tax base, the granting of a subsidy can be evaluated in terms of whether it promotes one or more of the following: 1. Encourage economic and commercial diversity within the community; 2. Contribute to the establishment of a critical mass of commercial development within an area; 3. Provide basic goods and services, increase the range of goods and services available or encourage fast-growing businesses; 4. Promote redevelopment objectives and removal of blight, including pollution cleanup; 5. Promote the retention or adaptive use of buildings of historical or architectural significance; 6. Promote additional or spin-off development within the community;