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1 <br />1 <br />COUNCIL WORK SESSION SEPTEMBER 8, 1993 <br />the City provide financial assistance for that portion of the <br />project. <br />Mr. Wessel explained that the upgrading of the existing metal <br />building and overall quality of the manufacturing addition will <br />be, in the opinion of EDAAB, a significant and precedent setting <br />step forward in upgrading the image of the Apollo Business Park. <br />EDAAB is recommending approval of the Accu -Tool, Inc. project. <br />Mayor Reinert asked if Mr. Wessel could explain the cost/benefit <br />ratio. Mr. Schumacher explained that the project cost is <br />estimated to be $327,000.00 which does not include "soft" costs. <br />Mr. Ron Batty, EDAAB legal counsel, concurs with the <br />recommendation from the EDAAB of the subsidy of $50,000.00 for <br />the improvements to the existing pole building. <br />If the City supported the subsidy the process would be <br />implemented as follows: <br />1. Amend the current TIF plan to include these improvements. <br />Set a public hearing - 30 day waiting period for Centennial <br />School District and Anoka County to give input. <br />2. Draft a developers agreement which would include a $50,000 <br />land and/or site preparation write down subsidy to be <br />delivered at the time of occupancy. <br />Mr. Wessel explained that the City's willingness to assist this <br />business shows the City's sincere interest in attracting <br />business. <br />Mr. Bergeson asked if the City Council should know the current <br />tax base and the potential tax base. He felt it should show a <br />significant increase in the tax base. <br />Mr. Wessel noted that several buildings in the area are pole <br />structures and upgrading of this building is significant in <br />showing that it can be done. <br />Council Member Kuether asked if the subsidy would be repaid. <br />Wessel said no, it would be an outright grant. <br />Mr. <br />Council Member Kuether asked what happens if the building is <br />upgraded and the subsidy given and six (6) months later Mr. <br />Jungman sells the building and leaves the City. Mr. Schwnacher <br />explained the City gets a significant tax base increase no matter <br />who owns the building. Council Member Kuether said she felt that <br />there is a need to get financing for persons trying to build in <br />this City. Mayor Reinert said he liked the creative way of <br />PAGE 5 <br />7 ,r <br />