HRA MINUTES 02131996 - Laserfiche WebLink

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0 Housing and Redevelopment Authority Meeting Minutes • February 13, 1996 Page 2 B. Warming Kitchen - $710.00 Motion by Marks, second by Wagner to approve Change Order #2 in the amount of $710.00. Motion carried unanimously, C. Relocate Temporary Fence - $3.161.00 Motion by Enrooth, second by Marks to approve Change Order #3 in the amount of $3,161.00. Motion carried unanimously. 9 VII. REVIEW DEVELOPMENT PROPOSAL FOR VACANT LOT ADJACENT TO 10 INDUSTRIAL CUSTOM PRODUCTS (2801 - 37TH AVENUE N.E.) 11 Executive Director Momson reported Ken Solie and Jerry Cowan are proposing 12 redevelopment of the property adjacent to Custom Industrial Products. The property is 13 currently part of the American Monarch building and the developer would request a 14 subdivision and may require some setback variances. They are proposing to construct a 30,000 square foot commercial facility that will service two tenants. One tenant is currently a tenant in St. Anthony who needs to relocate. The project is estimated to create 17 30 jobs. The facility would have a value of $1.2 million and a tax bill of $60,000.00 per 18 year, compared to the current taxes of $5,000.00. In a policy adopted last year, the City 19 can provide up to $10,000.00 in assistance for each $100,000.00 increase in value and 20 $5,000.00 for every job created or retained. In this situation the City could provide 21 $270,000.00 in assistance. Staff feels this project would benefit the community as well as 22 Apache Plaza. Mornson reported the City has $500,000.00 in the fund balance from 23 Chandler and Kenzie TIF district. Staff is suggesting if the City is willing to provide 24 assistance, they draw from this fund. The benefits of this are: (1) no bond sale; (2) no 25 TIF district created; (3) no LGA penalty; and (4) the City, School and County benefit 26 immediately. A public hearing would be required to amend the budget. 27 Mr. Ken Solie stated the proposed facility would contain 30,000 square feet. He noted 28 they had originally tried to duplicate the facade of the American Monarch building but 29 the design is out -dated. Therefore, they will be using a facade similar to the Main Event 30 building. A tenant approach will be used in the building. He stated they are aware of the 31 issues involved with drainage and intend to utilize the same engineer as used by Opus 32 Corporation at Apache Plaza. He stated soil conditions are a big concern. Soil borings 33 will be performed and determinations made at that time. A retaining wall will be 34 installed at the east end of the property. 0 Wagner asked if there was sufficient parking available for the facility.