02/28/2005 Council Packet - Laserfiche WebLink

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AGENDA ITEM 4 STAFF ORIGINATOR: Mary Alice Divine DATE: 02/28/05 TOPIC: Public Hearing: Consideration of a Business Subsidy for Schwan's Home Service, Inc. Vote Required: Simple Majority BACKGROUND: Schwan's Home Service, Inc. is one of the largest producers of frozen food products in the United States, and the largest direct -to -home food delivery provider. Headquartered in Marshall, Minnesota, Schwan's has had a warehouse /distribution facility in Lino Lakes for the past 21 years on Lake Drive just north of the 35W interchange. Schwan's has outgrown its facility on Lake Drive, and is planning to relocate in the Marshan Lake Industrial Park next to Distribution Alternatives. This facility will be a 12,400 sq. ft. distribution facility on a 6.4 -acre site. Approximately 1/3 of the building will be used as office, the remainder for warehousing and shipping areas. Because this site is highly visible from 35W, staff requested that Schwan's design of the building exceed the minimum standards required in the City's Light Industrial Zoning Ordinance, and the proposed architectural design submitted by Schwan's does achieve a level of design that will enhance the look of the industrial park from the freeway. The company is requesting Tax Increment Financing assistance for site improvement costs, including site preparation, landscaping, and grading. The company has committed to hiring a minimum of six (6) new employees within two years at no less than $9.00 per hour, exclusive of benefits. Based on an analysis by staff and the city's TIF consultant, the recommendation is to provide five years of increment on a pay -as- you -go basis for a total of $91,715. A condition of the agreement requires that the existing Schwan's facility on Lake Drive be demolished, which is consistent with Comprehensive Plan policies and recommendations, among them: • To "Redevelop select, commercial /industrial properties which display deteriorated building conditions, obsolete site design, incompatible land use and /or under - utilization of the site." • "The City will pursue the relocation of (small isolated industrial sites on Lake Drive) into a community industrial park and the redevelopment of these existing industrial sites."