Laserfiche WebLink
AGENDA ITEM 4 <br />STAFF ORIGINATOR: Brian Wessel <br />DATE: <br />TOPIC: Public Hearing on the proposed business subsidy to <br />H&L Mesabi <br />Vote Required: Simple Majority <br />BACKGROUND: <br />H&L Mesabi has requested tax increment financing (TIF) assistance in the <br />amount of $110,200 for the purpose of constructing,, a 15,000 square foot <br />building in the Apollo Business Center. The 15-year-old company is a distributor <br />of construction, aggregate and environmental equipment, portable screening <br />plants, and supply items. The industries served out of the Twin Cities facility are <br />aggregate, processing, construction and govemmental customers. The <br />company's main facility is in Hibbing, Minnesota, with a sales and distribution <br />facility currently located in Blaine that employs nine. <br />The proposed facility will have a minimum market value of $690,800 for a total of <br />$30,778 in annual taxes (based on 2000 dollars). <br />According to the Minnesota Business Subsidy law, the EDA must hold a public <br />hearing before granting a subsidy that exceeds $100,000. In addition to <br />increasing the tax base, the granting of a subsidy can be evaluated in terms of <br />whether it promotes one or more of the following: <br />CV Encourage economic and commercial diversity within the <br />community; <br />2. Contribute to the establishment of a critical mass of <br />commercial development within an area; <br />3. Provide basic goods and services, increase the range of <br />goods and services available or encourage fast-growing <br />businesses; <br />4. Promote redevelopment objectives and removal of blight, <br />including pollution cleanup; <br />5. Promote the retention or adaptive use of buildings of <br />historical or architectural significance; <br />6. Promote additional or spin-off development within the <br />community; <br />Encourage full utilization of existing or planned <br />infrastructure improvements. <br />1-3s <br />