HomeMy WebLinkAbout03-12-2001 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
MARCH 12, 2001
6:00 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of November 13, 2000
3. Public Hearing: Proposed Business Subsidy to Summit Fire Protection
3A. Consideration of Resolution No. 01-01, Approving a Business Subsidy for
Summit Fire Protection
4. Consideration of Contract for Private Development between Lino Lakes EDA and
Summit Fire Protection
5. Consideration of Resolution No. 01-02, Declaring Default and Terminating
Development Agreement, H&L Mesabi
6. Adjourn
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
DATE
MEMBERS PRESENT
MEMBERS ABSENT
OTHERS PRESENT
: November 13, 2000
: J. Bergeson, D. Carlson, C. Dahl, J. O'Donnell,
J. Reinert
: None
: Mary Divine and Dan Tesch
CONSIDERATION OF MINUTES OF MONDAY, AUGUST 14, 2000
EDA Member Dahl moved to approve the August 14, 2000, minutes, as presented. EDA
Member O'Donnell seconded the motion. Motion passed unanimously.
PUBLIC HEARING: PROPOSED BUSINESS SUBSIDY TO NORTH
AMERICAN COMPOSITES
Ms. Divine advised North American Composites, a subsidiary of Interplastic Corporation,
has requested tax increment financing (TIF) assistance in the amount of $122,250 for the
purpose of constructing a 25,000 square foot distribution facility in the Apollo Business
Center. North American Composites is a national distributor of polyester resins,
fiberglass, and related products to the composites industry. The local distributor will
employ 21 at this new facility, including management, warehouse, drivers, office and
sales positions. The company has committed to hiring at least three new employees
within two years at no less than $25,000 annual salary, plus benefits.
EDA President Bergeson opened the public hearing at 6:07 p.m.
EDA Member Carlson moved to close the public hearing at 6:07 p.m. EDA Member
Dahl seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION NO. 00 — 04 APPROVING A BUSINESS
SUBSIDY FOR NORTH AMERICAN COMPOSITES
Ms. Divine advised this resolution recognizes that North American Composites meets
one or more of the goals and objectives outlined by the EDA in its business subsidy
criteria. Those goals include:
1. Light industrial projects in the Apollo Business Center are consistent with
the City's comprehensive plan designed to encourage economic growth
and diversity.
2. As part of the Lino Lakes Town Center, the projects moving into the park
play a significant role in providing a critical mass of development to
support retail and service businesses in the commercial center.
3. This project is also consistent with the City's need to recover the return on
its investment in the existing infrastructure within the park.
Ms. Divine advised this project will be receiving site and building play review later
tonight by the City Council. It is recommended that approval of the business subsidy be
contingent upon final approval of the project by the City Council.
EDA Member Carlson asked which of the City's TIF Districts require the 10%
contribution. Ms. Divine advised any economic development district requires the 10%
contribution.
EDA Member Reinert asked how the amount of TIF is derived. Ms. Divine advised the
amount is derived from a number of scoring mechanisms that include land use, tax base,
number of employees. Other factors include TIF capacity and the company's need. In
this case, the amount came in approximately 10-12% of their estimated market value.
EDA Member Carlson moved to approve Resolution No. 00 — 04 contingent upon final
approval of the project by the City Council. EDA Member Dahl seconded the motion.
Motion passed unanimously.
CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT
BETWEEN LINO LAKES EDA AND NORTH AMERICAN COMPOSITES
Ms. Divine advised the development contract outlines the conditions for public assistance
to North American Composites for the construction of a 25,000 square foot facility on 2.4
acres on the G.M. Development property in the Apollo Business Center. The proposed
facility will have a minimum market value of $938,400 for a total of $42,000 in annual
taxes (based on pay 2001 dollars).
The costs for land, assessments and escrow are approximately $226,000. In this
agreement, the City agrees to provide tax increment financing totaling $122,250 towards
those costs.
The agreement removes the assessments of $63,877 up front. The remaining pay-as-you-
go TIF amounts to $58,373 for assistance with land write down and return of escrow.
The City will be reimbursed first for the assessments from the available tax increment,
and then the developer will receive the remaining increment. Estimated total pay back is
in 2007.
This project is in TIF District 1-9, which requires a 10% local contribution ($13,753). It
is the City's intent to apply the interest lost on the assessments that were deferred until
development occurred as the local contribution.
EDA Member Reinert moved to approve the contract for private development between
Lino Lakes EDA and North American Composites, as presented. EDA Member
O'Donnell seconded the motion. Motion passed unanimously.
ADJOURNMENT
EDA Member O'Donnell moved to adjourn. EDA Member Carlson seconded the
motion. Motion passed unanimously.
Meeting adjourned at 6:15 p.m.
Transcribed by:
Kim Points
TimeSaver Off Site Secretarial, Inc.
AGENDA ITEM 3
STAFF ORIGINATOR: Mary Alice Divine
DATE: 03/12/01
TOPIC: Public Hearing on the proposed business subsidy to
Summit Fire Protection
Vote Required: Simple Majority
BACKGROUND:
Summit Fire Protection, a company that designs, manufactures and installs fire
suppression systems, has requested tax increment financing (TIF) assistance in
the amount of $217,059 for the purpose of constructing a 30,000 square foot
facility in the Apollo Business Center. Summit currently is the second largest fire
protection company in Minnesota, and currently has locations in Savage,
Roseville, Rochester and Fargo. The company plans to consolidate the
Roseville and Savage locations into this new Lino Lakes facility. The company
will employ approximately 60 at this new facility, including management,
designers, sales positions and fabricators. The company has committed to hiring
at least eight new employees within two years at no less than $22.00 per hour,
plus benefits.
A public hearing is required by statute when the EDA is considering granting a
subsidy that exceeds $100,000.
OPTIONS:
1. Open the public hearing
2. Continue the public hearing
RECOMMENDATION:
Option 1
Section 4.3. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvements in accordance with the Construction Plans and all terms of this Agreement, the
Authority will furnish the Developer with a Certificate of Completion. The Certificate of
Completion shall be in the form of Exhibit C attached hereto. Such certification by the Authority
shall be a conclusive determination of satisfaction and termination of the agreements and covenants
in this Agreement with respect to the obligations of the Developer to construct the Minimum
Improvements and the date for the completion thereof.
(b) The Certificate of Completion provided for in this section 4.3 shall be in such form
as will enable it to be recorded in the proper office for the recordation of deeds and other
instruments pertaining to the Property. If the Authority refuses or fails to provide certification in
accordance with the provisions of this section 4.3, the Authority shall, within ten 10 days after
written request by the Developer, provide the Developer with a written statement, indicating in
adequate detail in what respects the Developer has failed to complete the Minimum Improvements
in accordance with the provisions of the Agreement, or is otherwise in default, and what measures
or acts it will be necessary, in the opinion of the Authority, for the Developer to take or perform in
order to obtain such certification.
(c) The construction of the Minimum Improvements shall be deemed to be completed
when the Minimum Improvements are certified substantially completed by the architect of record
and when the Minimum Improvements have received a certificate of occupancy from the City's
building official.
Section 4.4. Reconstruction of Minimum Improvements. If the Minimum Improvements
are damaged or destroyed before or after completion thereof but before the Termination Date, the
Developer agrees, for itself and its successors and assigns, to reconstruct the Minimum
Improvements so that the Minimum Improvements and the Property have a value at least equal to
the Minimum Market Value. The Minimum Improvements shall be reconstructed in accordance
with the Construction Plans, or such modifications thereto as may be requested by the Developer
and approved by the Authority and the City.
Section 4.5. Property Taxes; Special Assessments. After closing on the Property pursuant
to Article III hereof, the Developer agrees to pay as they become due on the Property and the
Minimum Improvements all ad valorem taxes and special assessments, other than the Special
Assessments referenced in section 5.1 of this Agreement. The Developer shall not cause the
Property to be removed from the public tax rolls or to become exempt from assessment for general
real estate taxes by reason of any conveyance, lease, abatement or other action prior to the
Termination Date.
ARTICLE V
Public Assistance
\X"--- Section 5.1. Special Assessments. The City has constructed the Public Improvements for
the benefit of the Property and other parcels and would have been authorized by law to levy Special
Assessments against the Property in the principal amount of $87,780. The Authority shall assume
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responsibility for payment of the Special Assessments relating to the Property at the time of
issuance of the Certificate of Completion for the Minimum Improvements. The Authority shall first
use Tax Increment collected with regard to the Minimum Improvements to pay to the City the
principal of the Special Assessments, plus interest at an annual rate of 8 percent from the date of
issuance of the Certificate of Completion on the unpaid balance. After full payment to the City of
the principal and interest on the Special Assessments and reimbursement of the Authority's
Administrative Expenses, the Authority shall use Available Tax Increment to pay the Developer the
Property Write Down and reimbursement of the Administrative Fee pursuant to sections 5.2 and 5.3
of this Agreement. Payment of Available Tax Increment shall be remitted by the Authority to the
Developer on or before February 1 and August 1 of each year, with an estimated beginning of
August 1, 2005, until the Termination Date.
Section 5.2. Administrative Fee. The Developer has paid the Authority the Administrative
Fee in the amount of $5,000 to cover a portion of the Authority's expenses in negotiating this
Agreement and other costs associated with the project. The Authority agrees to reimburse the
Developer for the Administrative Fee out of Available Tax Increment, after first satisfying its
obligation regarding the Special Assessments and reimbursement of the Administrative Expenses.
Ys"--' Section 5.3. Property Write Down. In order to facilitate the financial feasibility of the
development of the Property and in consideration for the Developer's fulfillment of its covenants
and obligations under this Agreement, the Authority agrees to write down the cost of the Property
for the Developer. The Developer represents that it has entered into an agreement to purchase the
Property from the Seller for $333,601. The Developer agrees to provide the Authority a copy of the
purchase agreement to verify the price of the Property. The Authority agrees to reimburse the
Developer $124,279 out of Available Tax Increment as the Property Write Down.
Section 5.4. No Representation Regarding Available Tax Increment. The Authority's
financial commitment under this Agreement regarding the Property Write Down and reimbursement
of the Administrative Fee is a revenue obligation only and will be paid by the Authority only after
sufficient Tax Increment has been received by the Authority to fully pay the Special Assessments
payable to the City, including principal and interest on the unpaid balance, and to reimburse the
Authority's Administrative Expenses. The Authority makes no representations or warranties that
the Available Tax Increment will be sufficient to pay the Developer for the Property Write Down
and to reimburse the Administrative Fee. The Developer acknowledges that Available Tax
Increment is subject to calculations by the County and changes in State law, including proposals to
modify the property tax system regarding financing of public education which may be considered or
enacted by the Minnesota legislature in 2001. Some or all of the Property Write Down and
Administrative Fee reimbursement may not be made prior to the Termination Date due to
insufficient Available Tax Increment. The Developer also acknowledges that the estimates of
Available Tax Increment which may have been made by the Authority or its agents, officers or
employees are estimates only and are not intended for reliance by the Developer.
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(i) For purposes of this Article X, the Developer includes any party to whom the
Developer leases the Property or Minimum Improvements.
Section 10.2. Job and Wage Goals. Within two years after the earlier of the date of
issuance of the Certificate of Completion or the date the Developer occupies the Property (the
"Compliance Date"), the Developer shall cause to be created at least eight new full-time equivalent
jobs on the Property at no less than $22.00/hour, exclusive of benefits. For purposes of this Article
X, a full time job means one which requires at least 371/2 hours of work per week. Notwithstanding
anything to the contrary herein, if the wage and job goals described in this Section 10.2 are met by
the Compliance Date, those goals are deemed satisfied despite the Developer's continuing
obligations under Sections 10.1(f) and 10.4. The Authority may, after a public hearing, extend the
Compliance Date by up to one year, provided that nothing in this Section 10.2 will be construed to
limit the Authority's legislative discretion regarding any such extension.
Section 10.3. Remedies. If the Developer fails to meet the goals described in Section
10.1(c), the Developer shall repay the Authority a pro rata share of the amount of the subsidy
granted by this Agreement, plus interest on said amount at the implicit price deflator as defined in
Minnesota Statutes, Section 275.50, subd. 2, accrued from the date of issuance of the Certificate of
Completion to the date of payment. The repayment shall be made by the Developer within thirty
(30) days of written demand by the Authority. The term pro rata share means percentages
calculated as follows:
(i) if the failure relates to the number of jobs, the jobs required less the jobs created,
divided by the jobs required;
(ii) if the failure relates to wages, the number of jobs required less the number of
jobs that meet the required wages, divided by the number of jobs required;
(iii) if the failure relates to maintenance of the manufacturing facility in accordance
with Section 10.1(0, 60 less the number of months of operation as a manufacturing facility
(where any month in which the facility is in operation for at least 15 days constitutes a
month of operation), commencing on the date of the Certificate of Completion ending with
the date the facility ceases operation as determined by the Authority, divided by 60; and
(iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable
percentages, not to exceed 100%.
Nothing in this Section 10.3 shall be construed to limit the Authority's remedies under
Article IX hereof. In addition to the remedy described in this Section 10.3 and any other remedy
available to the Authority for failure to meet the goals stated in Section 10.1(c), the Developer
agrees and understands that its may not a receive a business subsidy from the Authority or any
grantor as defined in the Business Subsidy Act for a period of five years from the date of the failure
or until the Developer satisfies its repayment obligation under this Section 10.3, whichever occurs
first.
Section 10.4. Reports. The Developer must submit to the Authority a written report
regarding business subsidy goals and results by no later than March 1 of each year, commencing
March 1, 2002 and continuing until the later of (i) the date the goals stated Section 10.1(c) are met;
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AGENDA ITEM 3A
STAFF ORIGINATOR: Mary Alice Divine
DATE: 03/12/01
TOPIC: Consideration of Resolution No. 01-01, approving the
proposed business subsidy to Summit Fire Protection
VOTE REQUIRED: Simple Majority
BACKGROUND:
This resolution recognizes that Summit Fire Protection meets one or more of the
goals and objectives outlined by the EDA in its business subsidy criteria. Those
goals include:
1. Light industrial projects in the Apollo Business Center are consistent with the
city's comprehensive plan designed to encourage economic growth and
diversity.
2. As part of the Lino Lakes Town Center, the projects moving into the park play
a significant role in providing a critical mass of development to support retail
and service businesses in the commercial center.
3. This project is also consistent with the city's need to recover the return on its
investment in the existing infrastructure within the park.
This project will be receiving site and building plan review later tonight by the City
Council. It is recommended that approval of the business subsidy be contingent
upon final approval of the project by the City Council.
OPTIONS:
1. Adopt Resolution No. 01-01
2. Retum to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 01-01
RESOLUTION AUTHORIZING APPROVING BUSINESS SUBSIDY
TO SUMMIT FIRE PROTECTION
BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows:
Section 1. Recitals
1.01. The Lino Lakes Economic Development Authority (the "Authority") approved a tax
increment financing plan (the "Plan") for the Tax Increment Financing District No. 1-9 (TIF
District No. 1-9) on December 14, 1998.
1.02. On December 14, 1998, the City Council of the City of Lino Lakes (the "City")
approved the Plan.
1.03 On November 8, 1999, following a public hearing, the Authority approved the Lino
Lakes Economic Development Authority Business Subsidy Criteria (the "Criteria"), pursuant to
Minnesota Statute, sections 1167.993 through 116J.995 (the `Business Subsidy Act.")
1.04. Summit Fire Protection, a Minnesota Corporation, (the "Developer") has requested
a business subsidy through tax increment financing in the amount of $217,059 for the construction
of a light industrial facility in the Apollo Business Center.
1.05. Pursuant to Section 116J.994, subd. 5 of the Business Subsidy Act, the Authority
has on this date held a public hearing on the proposed subsidy to the Developer, following
published notice as required by law, at which hearing all persons wishing to express an opinion
were given an opportunity to do so.
Section 2. Findings.
2.01. It is hereby found and determined that the business subsidy is in the best interest of
the Authority because it is consistent with and promotes the goals established by the Authority in
adopting the Criteria.
2.02. It is hereby found and determined that granting the business subsidy to the
Developer furthers the Authority's general plan of economic development of the community by
encouraging growth and expansion of an industrial park which has not been used to its full
potential.
2.03. Pursuant to the Criteria established by the Authority, it is hereby found and
determined that the business subsidy promotes the following:
1. Encourages economic and commercial diversity within the community;
2. Contributes to the establishment of a critical mass of commercial development
within an area, and
3. Encourages full utilization of existing or planned infrastructure improvements.
Section 3. Authorization.
3.01. The business subsidy to the Developer as described above is hereby approved.
3.02. The President and Acting Executive Director are hereby authorized and directed to
execute a Development Agreement, including the business subsidy agreement required by the
Business Subsidy Act, and other appropriate documents to facilitate the finalization of ` the
business subsidy to the Developer.
3.03. Staff and consultants are hereby authorized and directed to take any and all other
actions necessary or convenient to effect the intent of this resolution, including seeking approval
of the subsidy from the Lino Lakes City Council.
Dated: , 2001.
President
ATTEST:
Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
AGENDA ITEM 4
STAFF ORIGINATOR: Mary Alice Divine
DATE: 03/12/01
TOPIC: Consideration of the Contract for Private
Development between Lino Lakes EDA and Summit
Fire Protection
VOTE REQUIRED: 3/5
BACKGROUND:
This development contract outlines the conditions for public assistance to
Summit Fire Protection for the construction of a 30,076-square foot facility on
five acres on the G.M. Development property in the Apollo Business Center (see
attached map). The proposed facility will have a minimum market value of
$1,615,000 for an estimated total of $73,000 in annual taxes.
This agreement is based on a total TIF subsidy of $217,059. It removes the
assessments of $87,780 upfront. The remaining pay-as-you-go TIF amounts to
$129,279 for assistance with land write down and return of escrow. The city will
be reimbursed first for the assessments from the available tax increment, and
then the developer will receive the remaining increment. Estimated total payback
isin2007.
This project is in TIF District 1-9, which requires a 10% local contribution
($23,496). It is the city's intent to apply the interest lost on the assessments that
were deferred until development occurred as the local contribution.
OPTIONS:
1. Approve the contract for private development between Lino Lakes EDA and
Summit Fire Protection
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
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STAFF ORIGINATOR:
DATE:
TOPIC:
VOTE REQUIRED:
AGENDA ITEM 5
Mary Alice Divine
03/12/01
Consideration of Resolution NO. 01-02, Declaring
Default and Terminating Development Agreement,
H&L Mesabi
3/5
BACKGROUND:
On January 24, 2000 the EDA approved a Contract for Private Development with
H&L Mesabi for $110,200. The contract required H&L Mesabi to complete the
construction of its facility by December 31, 2000. Since the approval of that
agreement, the company, which is based in Hibbing, Minnesota, had some
setbacks that changed the outlook for the construction of this metro area facility.
Because H&L Mesabi has not begun construction of the building in the Apollo
Business Center, the company is in default of its development agreement. The
president of the company was sent a notification that he had 30 days to cure the
default by providing evidence of his intent to complete the facility. He selected
not to cure the default.
OPTIONS:
1. Adopt Resolution 01-02, declaring default and terminating the development
agreement
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
Lino Lakes Economic Development Authority
Resolution No. 01-02
RESOLUTION DECLARING DEFAULT AND TERMINATING
DEVELOPMENT AGREEMENT
WHEREAS, the Lino Lakes Economic Development Authority (the "Authority") entered
into that certain contract for private development dated April 25, 2000 (the "Development
Agreement") with Bernard V. Carey (the "Developer"); and
WHEREAS, pursuant to the Development Agreement, the Developer agreed to construct
a manufacturing facility containing 15,000 square feet (the `Minimum Improvements") by no
later than December 31, 2000; and
WHEREAS, the Developer has failed to begin construction of the Minimum
Improvements; and
WHEREAS, by letter dated February 1, 2001 the Authority notified the Developer of the
default under the Development Agreement and provided the 30 day notice and opportunity to
cure the default required by Section 9.2 of the Development Agreement; and
WHEREAS, the Developer has failed to cure the default.
NOW, THEREFORE, BE IT RESOLVED By the Lino Lakes Economic Development
Authority, as follows:
1. The Developer is declared to be in default under the Development Agreement for
failing to begin or complete construction of the Minimum Improvements and has failed to cure
said default after notice.
2. The Authority hereby elects to cancel and rescind the Development Agreement.
3. The Authority staff is authorized and directed to take any and all steps necessary
to terminate the Authority's relationship with the Developer and to make no payments to and
confer no benefits on the Developer pursuant to the Development Agreement.
4. The city council is asked to authorize termination of the Assessment Agreement
executed by the Developer and the Authority regarding the Minimum Improvements.
Dated: March 12, 2001.
John Bergeson, President
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Attest:
Linda Waite Smith, Executive Director
The motion for the foregoing resolution was duly seconded by Member
and upon a vote being taken thereon, the following voted in favor thereof
and the following voted against same:
Whereupon said resolution was declared duly adopted.
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AGENDA ITEM 7A
STAFF ORIGINATOR: Mary Alice Divine
DATE: 03/12/01
TOPIC: Consideration of Resolution NO. 2001-39,
Terminating Assessment Agreement, H&L Mesabi
VOTE REQUIRED: 3/5
BACKGROUND:
On January 24, 2000 the Lino Lakes Economic Development Authority entered
into a Contract for Private Development with H&L Mesabi. The contract required
H&L Mesabi to complete the construction of its facility by December 31, 2000.
The facility has not been constructed and the EDA earlier tonight considered
declaring default and terminating the agreement.
An assessment agreement was also entered into by the EDA on behalf of the
city calling for a minimum market value of $690,800 with regard to the minimum
improvements as of January 2, 2001, for taxes payable beginning in 2002. With
no construction on the site, this market value does not apply and the
assessment agreement can be terminated.
OPTIONS:
1. Adopt Resolution 2001-39, terminating the assessment agreement
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member
introduced the following resolution and moved its adoption:
City of Lino Lakes
Resolution No. 2001-39
RESOLUTION TERMINATING ASSESSMENT AGREEMENT
WHEREAS, the Lino Lakes Economic Development Authority (the "Authority") entered
into a Contract for Private Development dated April 25 , 2000 (the "Development
Agreement") with Bernard V. Carey (the "Developer") for construction of a 15,000 square foot
manufacturing facility (the "Minimum Improvements") to be completed by December 31, 2000;
and
WHEREAS, the Authority and Developer also entered into an Assessment Agreement
calling for a minimum market value of $690,800 with regard to the Minimum Improvements as
of January 2, 2001 for taxes payable beginning in 2002; and
WHEREAS, the Developer has defaulted under the Development Agreement by failing to
construct the Minimum Improvements; and
WHEREAS, the Authority has terminated the Development Agreement as a result of the
Developer's default and wishes to terminate the Assessment Agreement.
NOW, THEREFORE, BE IT RESOLVED By the city council of the city of Lino Lakes
that the Assessment Agreement entered into by the Authority and the Developer and recorded on
the 8th day of June , 2000 as document number 1505096 in Anoka County, Minnesota,
is hereby terminated.
Dated: March 12, 2001.
John : erges Mayor
Attest:
Gilt u t,rUAd zc(
Ryc1e1 Gaustad CMC, City Clerk
The motion for the foregoing resolution was duly seconded by Member 71t (it 'L
and upon a vote being taken thereon, the following voted in favor thereof: 794-
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and the following voted against same:
Whereupon said resolution was declared duly adopted.
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STAFF ORIGINATOR:
DATE:
TOPIC:
AGENDA ITEM 7C
Mary Alice Divine
03/12/01
Consideration of Business Subsidy Agreement for
Summit Fire Protection
Vote Required: 3/5
BACKGROUND:
Earlier this evening the Economic Development Authority held a public hearing
regarding a proposed $217,059 business subsidy in the form of Tax Increment
Financing to Summit Fire Protection for the construction of a 30,000 square foot
facility in the Apollo Business Center. State statute requires that a public entity —
in this case the EDA—must find that the granting of a subsidy meets the best
interests of the city, and a business subsidy agreement needs to be approved by
both the EDA and the city council.
This subsidy is to be used to write down a portion of the cost of land and
assessments on the project according to the terms of a development agreement.
The subsidy agreement specifies the commitment the company is making
regarding wages and jobs, plus the annual reporting that is required.
OPTIONS:
1. Approve the business subsidy for Summit Fire Protection
2. Return to staff for further consideration
RECOMMENDATION:
Option 1