03-03-1997 WS - Laserfiche WebLink

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All three lots are serviced by Blaine water and sewer. Zep has also been looking at sites across Coral Sea Street which are in Blaine. Utilities to hook up to Blaine water and sewer in Blaine are less than to hook up to the same system in Mounds View. Therefore, they are also requesting TIF funds for the additional costs of the utilities. After staff and Mr. O'Meara reviewed financial information and projections for tax increment as a result of the project, we would recommend proposing a pay-as-you-go agreement up to the maximum of $150,000 of assistance. Benson-Orth Associates would capture 50% of the increment for 6 years. In addition, we have discussed the possibility of the City gaining a permanent easement for a City/Bridges Sign of which Benson-Orth is willing to have this written into the agreement. This proposal would be an estimated $0.90 per sq. ft. of assistance without the value of the easement. The EDC reviewed the project at the February 20th meeting to see if this use meets the goals and objectives of the City for lot 1 and also if the request can meet the but for test in evaluating tax increment financing. They reviewed the financial projections and request from Benson-Orth Associates. A motioned was made and approved to recommend the pursuit of a development assistance agreement as presented by Staff. Attached is a copy of the request :eater from 3enson-Orth Associates and a competed rea: estate pro-forma for your review. A representative from Benson-Orth Associates and ZepManufacturingwill be in attendance at • P the work session to answer any questions.