10/26/1998 Council Packet - Laserfiche WebLink

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08/18/98 13:10 $6123385288 k I GRIFFIN COMFANIEs June 5, 1998 GRIFFIN COS J 004/007 Mr. Brian Wessel. Director Community Development City of Lino Lakes 1189 Main Street Lino Lakes. \EN 55014 Fax 464-4568 Re: Apollo Business Park, Lino Lakes MN; Tax Increment Financing Dear Brian: Mary Divine mentioned to me that on Monday evening the City staff and officials will discuss the future Tax Increment Financing Programs for the Apollo Business Park As you know, I have been marketing that park for approximately 18 months. We now have one two -acre site under negotiation with, hopefully, construction starring in August of this year. We also have a second prospect which we met with this week for a three -acre parcel, which will result in a 30,000 square foot warehouse facility. I believe a brief history of my experience marketing that project may be of value to the City, as well as my recommendations regarding your Tax Increment Financing Program. During the last 18 months, we have had serious inquiries approximating 28 companies. These inquiries have gone beyond the telephone conversation phase to either visit the site, I visiting their current location and/or a visit to meet with your assistant Mary Divine. Most of these prospects declined to negotiate further, primarily because of the following reasons: 1. Prohibition against the outside storage. 2. Did not require the minimum of two acres, which is dictated by the curb cuts on Apollo Drive. 3. Postpone their plans 4. Tax Increment Financing Benefits available from the Lino Lakes community were not as favorable as the Tax Increment Financing Benefits from the city of Ramsey, for example. Granted many of the 28 would not have been eligible regardless of the TIF Program, however, 1 strongly feel that we would have made substantially more progress in getting more businesses into the Apollo Business Park had we had a more favorable program available. The City of Ramsey provides TIP Benefits, which covers the cost of the special assessments and the entire cost of the land. Today, in the Apollo Business Park, we are only able to cover the assessments and a very small portion of the land on a pay -as- you -go basis. The success of the Ramsey Industrial Park is evident. Of equal importance is that the size of the businesses we are dealing with generally fall within the two to three acre size, which will accommodate buildings from 10,000 to 30,000 square feet These are growing businesses with limited capital. By providing DT Benefits which front out the cost of the land and special assessments. You ate, in effect, providing the down payment (equity) necessary for the businesses to obtain their construction and permanent financing. Essentially the front -end cash investment by the company is a very limited amount, if any, which is exactly what these companies are looldng for. Their investment is the moving costs, etc., which are substantial. 612- 338 -2828 Fax 612- 338 -5288 Suite 300, 510 Marquette Avenue, Minneapolis, MN 55402 Maim'