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, <br /> • Item No. 7.A. <br /> Staff Report No. EDA-97-68C <br /> Aiii <br /> lir Meeting Date 4-14-97 <br /> Type of Business EDAB <br /> WK: Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;EDAB:EDA Business <br /> Mounds View Economic Development Authority <br /> Staff Re port <br /> To: Mounds View Economic Development Authority <br /> From: Cathy Bennett, Director of Economic Development <br /> Item Title/Subject: Consideration of Resolution No. 97-EDA63 Approving and <br /> Authorizing the Execution of a Development Assistance Agreement <br /> with Kenmark Partnership, LLC <br /> Date of Report: April 10, 1997 <br /> Overview: <br /> As presented at the March work session,the developers for Zep Manufacturing requested ' <br /> $150,000 in tax increment assistance for the construction of a 25,000 sq.ft. office/warehouse <br /> 4 building at the Corner of Coral Sea Street and County Road J. The assistance would allow the <br /> developer,Benson-Orth Associates; aka Kenmark Partnership, to capture a ten year lease for the <br /> Midwest headquarter facility of Zep Manufacturing. Zep is a 60 year old company that <br /> provides cleaning and sanitary products such as soaps,dispensers, and screens to the Midwest <br /> wholesale cleaning market and area businesses. They are a division of National Service <br /> Industries, Inc.headquartered in Atlanta and are relocating from their current facility in <br /> Roseville. Zep currently employs 60 people and are expected to hire at lease one new office staff <br /> and 2-3 new sales staff each year. <br /> Development Assistance Agreement: <br /> Attached is a copy of the development assistance agreement between the Mounds View <br /> Economic Development Authority and Kenmark Partnership which is the real estate arm of <br /> Benson-Orth and Associates. <br /> Financial Assistance: <br /> The assistance package would provide Kenmark Partnership with 60%of the increment for 6 <br /> years up to a maximum of$150,000 at 7%interest. This assistance amounts to approximately <br /> $0.90 per sq.ft. of land. The assistance will be to reimburse the developer for part of the cost of <br /> utilities, soil corrections,ponding,landscaping and grading costs which amount to over <br /> • $170,000. The developer is incurring additional ponding, soils and grading costs due to the <br /> request to move from lot 2 to lot 1 to accommodate the future expansion of the Bridges <br /> Technology Park. In addition,the utility costs are significantly higher in this area since they <br /> need to come from the Blaine system. Also,the developer will be incurring additional costs to <br />