11/13/2000 Council Packet - Laserfiche WebLink

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• CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND TWIN CITY FAB, INC. Ms. Divine advised this development contract outlines the conditions for public assistance to Twin City Fab for the construction of a 19,200 square foot facility on 4 acres on the G.M. Development property in the Apollo Business Center. The total minimum market value (MMV) of the completed project will be $920,500, with an estimated tax of $41,041 In this agreement, the City agrees to provide tax increment financing totaling $77,185, which amounts to approximately 8% of the MMV. The agreement removes the assessments of $70,185 upfront, plus a $5000 escrow, which will be returned to the company when the building is complete. The remaining pay -as- you -go TIF amount of $2000 will be used to assist with maintenance of the native landscaping on the site. The City will be reimbursed first for the assessments and then the developer will receive the remaining increment. Estimated payback is in July 2005. The project is in TIF District 1 -9, which requires a 10% to i contribution ($8,749). It is the City's intent to apply the interest lost on the assess wit . were deferred until development occurred as the local contribution. The business subsidy proposed for Twin City Fab, Inc., under $100,000, and therefore does not require a public hearing under the Mi . to B ess Subsidy Law. However, al subsidies of more than $25,000 require a bus a`� ®sidy agreement, which is now included in the development agreeme twee the developer and the EDA. Twin City Fab has agreed to a w .n`� •b goal of at least five new employees at a minimum starting wage of $ o emus a;- efits. EDA President Bergeson request escription of the business. Ms. Divine advised Twin City Fab, Inc. is a manufact ng shop with metal parts, awnings, staircases, etc. EDA Member O'Donnell moved to approve the contract between Lino Lakes EDA and CJN Investments, LLP, as presented. EDA Member Reinert seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Dahl moved to adjourn. EDA Member Carlson seconded the motion. Motion passed unanimously. Meeting adjourned at 6:32 p.m. Transcribed by: • Kim Points, TimeSaver Off Site Secretarial, Inc. 5