11/13/2000 Council Packet - Laserfiche WebLink

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• • • businesses in the commercial center. This project is also consistent with the City's need to recover the return on its investment in the existing infrastructure within the park. This resolution recognizes that Marmon/Keystone meets the goals and objectives outlined by the EDA in its business subsidy criteria. This project must go through a series of approvals, including approval of the development agreement, site and building plan and conditional use permit. The City Council will be considering the site plan and CUP at the August 28, 2000, Council meeting. It is recommended that approval of the business subsidy be contingent upon final approval of the project by the City Council. EDA Member O'Donnell moved to approve Resolution No. 00 — 03 contingent upon final approval of the project by the City Council. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND MARMON/KEYSl'ONE Ms. Divine advised this development contract outlines: to con d" ins for pubic assistance to Marmon/Keystone for the construction of an 8 ® Ok + are foot facility on 8 acres on the G.M. Development property in the Apollo Busin Center. The total market value (MMV) of the completed project will be $3,1 In this agreement, the City agrees to p which amount to approximately 10 assessments of $139,839 upfront company when the building i $177,403. It will be used t crement financing totaling $322,242, The agreement removes the escrow, which will be returned to the e remaining pay -as- you -go TIF amounts to the cost of the land, except for $3,000, which will be used to assist with maintenan • t= e native landscaping on the site The City will be reimbursed first for the assessment: and then the developer will receive the remaining increment. Estimated payback is in December 2005. This project is in TIF District 1 -9, which requires a 10% local contribution ($38,994). It is the City's intent to apply the interest lost on the assessments that were deferred until development occurred as the local contribution. EDA Member Carlson asked staff to explain the reason for the 10% local contribution. Ms. Divine advised state stature requires that for any tax increment assistance, the City pays 10% of the gross increment towards the project out of the General Fund. EDA Member Carlson moved to approve the contract for private development between Lino Lakes EDA and Marmon/Keystone, as presented. EDA Member Dahl seconded the motion. Motion passed unanimously. 4