10/06/2004 Council Packet - Laserfiche WebLink

Home Search

• WS -4 WORK SESSION STAFF REPORT Work Session Item No. 4 Date: Council Work Session, Wednesday, October 6, 2004 To: City Council From: Mary Divine Re: Proposal for Apollo Business Park United Properties is interested in building approximately 100,000 sq. ft. of • warehouse /office space on the 9.8 -acre site remaining in the Apollo Business Park. The project would be a good quality spec building designed for one or several users, similar to other facilities they have done in the metro area (see attached), with a value of approximately $6 million. They have also said they have guaranteed jobs in the 40 -60 range on these types of projects. • The parcel is within TIF District 1 -9, which expires in December of 2009. Because the district is aging, new projects would not generate enough increment to provide the type of subsidy most users are requesting without creating a new district, and the parcels have remained undeveloped. United Properties is requesting TIF to cover the assessments only to make the project economically feasible. Assessments in the Apollo Business Park were deferred, and are paid as parcels develop. The city can only recoup its investment in the Apollo Drive improvements if a property is developed. Assessments on this parcel are estimated in the range of $170,000. Early estimates of the increment that would be generated indicate assessments could be paid off in approximately two years. I'm seeking council direction on whether members wish to pursue this project using TIF to pay assessments on the parcel. Using TIF, the city can guarantee it recovers the city investment by 2009, or the council can chose to wait and see if the property develops on its own.