10-27-2003 EDA Packet - Laserfiche WebLink

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EDA MINUTES DRAFT SEPTEMBER 22, 2003 Mr. Davidson indicated Ms. Divine described the basis for their request. He stated they are hoping to 93 get within the economic market range for going ahead with this project, noting without this subsidy 94 the cost of the project would make it economically out of reach. 95 96 EDA Member O'Donnell noted the job growth is at the required minimum, and asked if there was any incentive to go beyond the minimum. Mr. Davidson stated he spoke with the President of the 98 company this afternoon on wage goals, noting they are committed to four jobs at a minimum of $10 99 per hour. He indicated the penalty for failing to achieve the job goals is severe. He believes they 10o have some range on salaries, and will not gravitate to the lowest wage. He stated they are feeling 101 good about the growth they can have, but also have to be conservative. He added in addition to their 102 regular employees they have a great number of temporary employees they employ year round. 103 104 EDA Member O'Donnell stated he understands the uncertainty, and there is some of that on the part 105 of the City as well, not knowing what the future holds for cities. He stated there is a 2 to 2.5% 106 difference between what the company wants and what this subsidy is proposing. He indicated given 107 what he knows, and without having all the answers on the 'but for', he would be in support of the five 1o8 year recommendation on the table now. 109 110 Patrick Pelstring offered two suggestions that might move them toward a resolution to meet the 111 customer's needs. He indicated the average wage is $13.37. He believes a couple of the jobs will be 112 above the $10.00 minimum. He stated the other aspect is that they originally looked at $5.88 per 113 square foot. Seven years gets them to $5.89. He indicated given their discussion if they could move 114 into that range it would be helpful. 115 116 EDA Member Dahl suggested they poll the Authority. She stated she is hearing some of the members 117 may be in favor of a longer term. She also stated she has a history of voting no on TIF subsidies. She 118 does not believe they should be necessary and no one has ever convinced her otherwise. She believes 119 you should be able to make it on your own, especially with the low interest rates. She stated the City 120 relies heavily on their TIF Consultant; however everyone who cannot afford what they want has to cut 121 back. She indicated the developer has the option of making it a smaller project and adding on when 122 they can afford it. 123 124 EDA President Carlson stated if the motion on the floor fails they can introduce a second motion. 125 126 Motion carried. EDA Member Dahl opposed. 127 128 B. CONSIDERATION OF A SUBORDINATION AGREEMENT 129 130 Ms. Divine reviewed the Subordination section of the contract. 131 132 EDA President Carlson asked if they would need to vote on this at the City Council meeting also. 133 Ms. Divine indicated they would not. 134