06-05-1995 WS - Laserfiche WebLink

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Agenda Section: 2 ` CITY OF REQUEST FOR COUNCIL CONSIDERATION 1191706W STAFF REFORfi AGENDA SESSION DATE June 5 , 1995 DISPOSITION Report Number: 95-1358WS Report Date: 6-1-95 Item Description: Discussion of Proposed Medical Facility Administrator's Review/Recommendation: - No comments to supplement this repor - Comments attached. Explanation/Summary (attach supplement`Sheets as ..ecessary.) S IM ARY: M--rhave been working with BelAir Builders who is interested in building a 33,000 s.f. building for a medical distribution company for several months. The company has decided to pursue this site and has negotiated a purchase agreement with Doug Watson for lot 3 of the property directly abutting the Bridges practice range. Samantha, Paul and I met with Jim Winkles of BelAir Builders and representatives from Midwest I.V. in early May to discuss the project. Midwest I.V. will be the primary occupant and owner of the building. They have approached the City for Tax Increment Financing assistance. BelAir Builders and Midwest I.V. have submitted proforma analysis regarding the project to show the gap for making this project a reality. The investors in the building, also owners of Midwest I.V., feel they could financially complete the project with a 10-12% return. Without TIF assistance they have calculated only a 1-3% return. Typically, developers require a 20-30% return prior to investing in a project. Since the owners of company would be the ones entering into the agreement, they would accept a lower margin of return. I have submitted the information provided by BelAir and Midwest to Springstead for review and analysis of tax payback. I anticipate that they will have something to report prior to the work session and will update you at this time. As part of the purchase agreement between the City of Mounds View and Doug Watson's on the property for the golf course, the City agreed to consider Tax Increment Financing Assistance in the amount of $230,000 for lateral water and sewer connection fees and storm water retention pond for the development of lots 1, 2, and 3. I have included a copy of the purchase agreement for your review. The project, without financial information, was presented to the EDC on May 25, 1995. The EDC's responsibility was to evaluate if the proposed use of the property would be one that the City should support and if they had any recommendations in relation to aesthetics of the building and site plan. I have attached a copy of their resolution in support for the project. Jim Winkles, Steve Peterson and Larry Lindberg will give an overview of the project at the work session. RECOMMENDATION; Cathy Bghc}'t, Economic Development Coordinator