01/24/2000 Council Packet - Laserfiche WebLink

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• • AGENDA ITEM 4 STAFF ORIGINATOR: Brian Wessel DATE: TOPIC: Public Hearing on the proposed business subsidy to H &L Mesabi Vote Required: Simple Majority BACKGROUND: H &L Mesabi has requested tax increment financing (TIF) assistance in the amount of $110,200 for the purpose of constructing a 15,000 square foot building in the Apollo Business Center. The 15- year -old company is a distributor of construction, aggregate and environmental equipment, portable screening plants, and supply items. The industries served out of the Twin Cities facility are aggregate, processing, construction and governmental customers. The company's main facility is in Hibbing, Minnesota, with a sales and distribution facility currently located in Blaine that employs nine. The proposed facility will have a minimum market value of $690,800 for a total of $30,778 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; 7 Encourage full utilization of existing or planned infrastructure improvements.