09-22- 2003 EDA Minutes - Laserfiche WebLink

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EDA MINUTES SEPTEMBER 22, 2003 DRAFT 3 91 Mr. Davidson indicated Ms. Divine described the basis for their request. He stated they are hoping to 92 get within the economic market range for going ahead with this project, noting without this subsidy 93 the cost of the project would make it economically out of reach. 94 95 EDA Member O'Donnell noted the job growth is at the required minimum, and asked if there was any 96 incentive to go beyond the minimum. Mr. Davidson stated he spoke with the President of the 97 company this afternoon on wage goals, noting they are committed to four jobs at a minimum of $10 98 per hour. He indicated the penalty for failing to achieve the job goals is severe. He believes they 99 have some range on salaries, and will not gravitate to the lowest wage. He stated they are feeling 100 good about the growth they can have, but also have to be conservative. He added in addition to their 101 regular employees they have a great number of temporary employees they employ year round. 102 103 EDA Member O'Donnell stated he understands the uncertainty, and there is some of that on the part 104 of the City as well, not knowing what the future holds for cities. He stated there is a 2 to 2.5% 105 difference between what the company wants and what this subsidy is proposing. He indicated given 106 what he knows, and without having all the answers on the ‘but for’, he would be in support of the five 107 year recommendation on the table now. 108 109 Patrick Pelstring offered two suggestions that might move them toward a resolution to meet the 110 customer’s needs. He indicated the average wage is $13.37. He believes a couple of the jobs will be 111 above the $10.00 minimum. He stated the other aspect is that they originally looked at $5.88 per 112 square foot. Seven years gets them to $5.89. He indicated given their discussion if they could move 113 into that range it would be helpful. 114 115 EDA Member Dahl suggested they poll the Authority. She stated she is hearing some of the members 116 may be in favor of a longer term. She also stated she has a history of voting no on TIF subsidies. She 117 does not believe they should be necessary and no one has ever convinced her otherwise. She believes 118 you should be able to make it on your own, especially with the low interest rates. She stated the City 119 relies heavily on their TIF Consultant; however everyone who cannot afford what they want has to cut 120 back. She indicated the developer has the option of making it a smaller project and adding on when 121 they can afford it. 122 123 EDA President Carlson stated if the motion on the floor fails they can introduce a second motion. 124 125 Motion carried. EDA Member Dahl opposed. 126 127 B. CONSIDERATION OF A SUBORDINATION AGREEMENT 128 129 Ms. Divine reviewed the Subordination section of the contract. 130 131 EDA President Carlson asked if they would need to vote on this at the City Council meeting also. 132 Ms. Divine indicated they would not. 133 134