02-20-1997 (2) - Laserfiche WebLink

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411/ Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: February 12, 1997 Subject: Consideration of Tax Increment Assistance Request (5.A.) We have received a request for$150,000 of tax increment funds to assist in the development of a 25,000 sq. ft. office/warehouse building on the vacant lot located at the corner of Coral Sea Street and County Road J. The applicant is Benson-Orth Associates who will build and lease the building to a company currently located in Roseville called Zep Manufacturing. Zep Manufacturing provides cleaning and sanitary products such as soaps, dispensers, and screens to the wholesale cleaning market and area businesses. They are a 60 year old company with • headquarters in Atlanta. The proposed building will be the regional sales and distribution facility. According to Benson-Orth the company generates a minimum amount of truck traffic similar to Midwest IV located on Lot 3. I spoke to Roseville who has been working with the company to accommodate their expansion for at least 2 years. Roseville can not accommodate their needs but feel they are an excellent company with great growth potential. As you recall, Midwest IV had future plans to expand on lot 2 and held an option on the land. They let their option expire in 1996 and since the land has been picked up by a broker for Zep Manufacturing. In discussion with Midwest IV, they are still interested in expanding on lot 2 and requested that Zep consider lot 1 for their building. The owner of the land is willing to sell lot 1 for the same price but Zep or Benson-Orth will incur additional costs for ponding and utilities at this site. Therefore, they are requesting the tax increment funds to cover these additional costs to move to lot 1 and keep lot 2 for the future expansion of Midwest IV. Zep has submitted plans for development review to the planning commission. I will bring a copy of the plan to the meeting for your information. After discussion with Benson-Orth and City TIF Consultant, we would reco end proposing a pay-as-you-go agreement up to the maximum of$150,000 of assistance. (856666/0 of the increment for 3 years) In addition, the City would like a permanent easement for a City/Bridges Sign. This proposal would be an estimated$0.90 per sq. ft. of assistance.