03-03-1997 WS - Laserfiche WebLink

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Item No. 'i Staff Report No. 97-6E3/-(J,5_ Meeting Date: 3-3-97 . Type of Business: WS WK•Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: City Council Members t. From: Cathy Bennett, Director of Economic Development Item Title/Subject: Tax Increment Financing Assistance for ZEP Manufacturing Date of Report: February 26, 1997 On February 10th City Staff and TIF Attorney, Jim O'Meara met with Mark Steingas of Benson- Orth Associates and Zep Manufacturing Broker, Wendell Smith to discuss the potential for receiving tax increment financing assistance. The request is for $150,000 to assist in the development of a 25,000 sq. ft. office/warehouse building on the vacant lot located at the corner of Coral Sea Street and County Road J (lot 1). This property is in TIF District #3 which includes Sysco and the Bridges Technology Park. The applicant would be Benson-Orth Associates who would build and lease the building for at least 10 years to Zep Manufacturing. Zep • Manufacturing provides cleaning and sanitary products such as soaps, dispensers, and screens to the wholesale cleaning market and area businesses. They are a 60 year old company with headquarters in Atlanta. The proposed building will be the regional sales and distribution facility. Currently, Zep Manufacturing leases a building in Roseville. They have outgrown this space and have been searching for a new location for over 2 years. I spoke to the Community Development Director in Roseville and they have been working with the company to try and accommodate their expansion for at least 2 years. Roseville can not accommodate their needs but feel they are an excellent company with great growth potential. Qualifying Costs and Public Purpose: Zep Manufacturing was originally considering lot 2 which is between lot 1 and the Bridges Technology Park which abuts the Mounds View driving range. This lot has been considered for further expansion of the Bridges Technology Park which has not yet been completed. The owners of the Bridges Technology Park are still interested in this site for an expansion in the next few years and asked that Zep consider the first lot as an alternative. The owner of both lots is willing to sell lot 1 for the same price as lot 2 but lot 1 will incur additional costs for ponding since the retention pond for the Bridges Technology Park and Lot 2 have already been constructed. Therefore, they are requesting the tax increment funds to cover the additional • costs for constructing a retention pond on lot 1.