2003-166 Council Resolution - Laserfiche WebLink

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STAFF ORIGINATOR: DATE: TOPIC: Vote Required: BACKGROUND: AGENDA ITEM 7A -iii Mary Alice Divine 09/22/03 Resolution No. 03-166 approving a Business Subsidy for Panattoni Development, LLC Simple Majority Panattoni Development has made a request for tax increment financing on behalf of the tenant, Distribution Alternatives, Inc. (DAI). Panattoni will be constructing a 265,000 sq. ft. distribution facility in the Marshan Lake Industrial Park, and leasing the space to DAI. DAI is a third party distribution center that provides warehousing and administrative services for a variety of clients. DAI currently has facilities in Arden Hills and Roseville, and will be consolidating its headquarters and distribution services in Lino Lakes. The company employs approximately 60 full time employees, including accounting, information systems, marketing, operations and warehouse staff, plus additional temporary employees. The company has committed to hiring at least four (4) new employees within two years at no less than $10.00 per hour, plus benefits. The company has a 10 -year lease, and therefore has committed to remaining within the city for five years after the benefit date. Based on an analysis of information provided by Panattoni and DAI, staff and the city's TIF consultant recommend providing five years of increment at $127,680 per year for a total of $638,400. Business Subsidy Criteria have been established by the city for use in evaluating a request for a business subsidy. The criteria used in evaluating a request for a business subsidy include: 1. The business subsidy meets a public purpose, including but not limited to increasing the tax base. 2. While an increase in the tax base cannot be the sole rounds for granting a subsidy, the city believes it is a necessary condition for any subsidy. 3. The recipient creates the maximum number of livable wage jobs at the site. Projects of this type should promote economic and commercial diversity within the community, contribute to the establishment of acritical mass of commercial development within an area, or encourage full utilization of existing or planned infrastructure improvements.