Agenda Packets - 2005/09/12 - Laserfiche WebLink

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Mounds View City Council August 8, 2005 Regular Meeting Page 12 1 Economic Development Coordinator Backman stated that he would like to point out one item 2 relative to the three-acres and explained that they are talking about three-acres out of the 46-acres 3 donated to the City. He stated that a good portion of the land added is not necessarily currently 4 wetlands and reviewed the locations with Council. He stated that there are wetlands located in 5 the area adding that not all three acres are in the wetland area. 6 7 Council Member Stigney clarified that he had said that SYSCO wished to build into the wetland 8 acres by 3-acres and obviously they wouldn’t be asking for money to mitigate if it wasn’t a 9 wetland area. He stated that if it were open top land they wouldn’t need the money to relocate 10 the pond and everything else out there. He stated that is the reason why he does not support this. 11 12 Mayor Marty explained that one of the reasons that SYSCO is asking for this assistance is 13 because their corporate offices capped their expenses at $1 million dollars for expansion and 14 development projects like this and the expenses for this expansion would be slightly over the 15 capped amount. He stated that he spoke with President Phil Seipp earlier today and he explained 16 that SYSCO’s money could very possibly go to another facility located in another State if this is 17 not approved. He expressed concerns stating that SYSCO has been a good neighbor to the City 18 of Mounds View and they have added business, added employees and with this expansion they 19 would have the potential to add another 100 employees. He stated that without this assistance 20 from the City this development, expansion and the new jobs would very likely not be coming to 21 the City of Mounds View. He also noted that this would be paid back to the City over a two-year 22 period and reviewed. 23 24 Council Member Stigney clarified that if SYSCO wants to cut off the expense at $1 million that 25 is a corporate decision on their part and is their decision to make. He stated that if they wish not 26 to expand here on that basis that is their decision to make and his decision is to determine 27 whether to allow them to come in and expand in a wetland and ask for TIF money to do it. He 28 noted that the residents are picking up $61,000 a year in fiscal disparities in order to keep that 29 TIF District open. 30 31 Mayor Marty clarified that this would be paid back within two years noting that SYSCO has been 32 a good neighbor and business. He explained that the reason they are expanding is to add jobs. 33 34 MOTION/SECOND. Thomas/Flaherty. To Approve Resolution 6593 with the two amendments 35 and to Approve the Development Agreement to provide $125,000.00 in Tax Increment Financing 36 (TIF) Assistance to SYSCO Food Services of Minnesota to facilitate the expansion of the 37 business located at 2400 County Road J in Mounds View. 38 39 Ayes-4 Nays-1 (Stigney) Motion carried. 40 41 B. Review Proposed 2006 City Budget/Preliminary Levy. 42 43 City Administrator Ulrich referenced the enclosed copy of the preliminary budget, which the 44 recommended action for this evening is to postpone for discussion at the Special Work Session 45