10-28-1997 - Laserfiche WebLink

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r Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: October 23, 1997 Subject: Consideration of Tax Increment Request by Pelstring Capital (5.A.) At the September meeting I gave a brief summary of the request for Tax Increment Funds to assist in the retention of a business that is located in the Mounds View Business Park. The request is presented by Patrick Pelstring of Pelstring Capital who is representing the owner of the building, CALPERS (California Public Retirement Fund) and LaSalle Partners (Agent for CALPERS). The company (Portable Products) is interested in expanding in their location in Mounds View but would require the relocation of another business (Sims Deltec) that is also leasing space in the building owned by CALPERS (Building A). Sims Deltec • would consider relocating to another building but have invested an estimated $700,000 in tenant improvements that they would need to recoup through the move. Mr. Pelstring has submitted an application for TIF assistance (see attached) which amounts to a straight grant of $700,000 and would enable the retention of both of these companies in Mounds View. TIF Consultant Dave Maroney and I met with Mr. Pelstring to discuss the proposal and felt that we needed to evaluate other alternatives prior to making any recommendation on the proposal. Mr. Pelstring discussed this with CALPERS who is unwilling to review other alternatives and divulge any more information prior to having a sense from the City if they are willing to participate. The owner is concerned about the confidentiality of providing lease terms and rates to the City as this becomes public information for which competition can use against them to lure the company away. Staff recognizes the risk and therefore has suggested that information be passed through Dave Maroney's office. They are still not willing to provide the information at this time and therefore, the $700,000 up front grant is the only alternative for CALPERS at this time I have not discussed the proposal and/or other possibilities with either company at this time but have just been working with Mr. Pelstring. Please review the attached information and be prepared to provide • alternatives/suggestions for the Council/EDA to review when this comes before them in November.