Agenda Packets - 1997/03/03 - Laserfiche WebLink

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crry OF O� De Phone: (612) 784-3055 ' DEW Fax: (612)784-3462 g•Pess • PartnerS'IS • • February 18, 1997 Mr. Mark Steingas President Benson-Orth Associates Incorporated 14001 Ridgedale Drive, Suite 320 Minnetonka, MN 55305 • Dear Mark: The City of Mounds View is very excited to learn of Zep Manufacturing's decision to pursue Lot 1 of the North Star Light Industrial site for their regional sales and distribution headquarters. • Per our meeting on February 10th and discussions regarding the project, staff is willing to recommend to the Mounds View Economic Development Authority(EDA)to consider offering assistance for the project through the use of tax increment financing. As you know, the project must meet certain State criteria to be eligible for assistance, namely the "but for" test. The law states that "but for" the use of tax increment financing the proposed development would not occur. With the information provided by you regarding the additional expenses that you will incur due to moving the building from lot 2 to lot 1 and hooking up to Blaine sewer and water, I believe there is adequate reason to meet the'but for"test. After reviewing your financial proforma and estimates of available increment generated by the project, I would like to propose offering Benson-Orth Associates 50% of the increment generated from the project for six years up to a maximum of$150,000. The payout would be semi-annually on a pay-as-you-go basis. I believe this offer would be sufficient to cover your additional costs for ponding and utilities as presented. The City of Mounds View's proposal is based upon the acknowledgment that Zep is unable to successfully find adequate expansion space in Roseville where they are currently located. In addition to the TIF Assistance, the City would like an easement on the northeast corner of the lot for a City sign. We would make sure the sign is constructed and maintained in a professional manner with natural non obtrusive materials. The project and offer of assistance will be discussed by the Economic Development Commission (EDC), an advisory group to the EDA, on February 20, 1997 at 7:30 a.m. The EDC will review . • the project to ensure that it meets the economic goals of the City and will give their recommendation to the EDA for review. The EDA will discuss the project at the work session on