3.4. SR 08-28-2000 - Laserfiche WebLink

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City of ITEM 3.4. TO: Rive o : Elk River City Council Cathy Mehelich, Director of Economic Development DATE: August 25, 2000 SUBJECT: Consider Resolution Regarding Business Subsidy for Santwire (Norha) and Ripplinger Projects Issue Per state law, any subsidy agreement issued by the EDA must receive approval by the City Council. Background The City Council on its August 14, 2000 meeting reviewed and approved providing subsidy assistance to the Santwire project, specifically to Equity Management, Inc. (Norha) and David & Carole Ripplinger for their industrial development projects. Equity Management, Inc. and the Ripplingers were approved to receive subsidy assistance in the estimated value of $175,900 each. The assistance was to be provided via a land sale write down at 100% less than current market value, subdivision expenses, and a portion of utility extension expenses incurred by the EDA for the project. The project goals established for the subsidy included the construction by Equity Management, Inc. of a 22,500 square foot multi-tenant building, and the construction by the Ripplingers of a 15,200 square foot mixed owner occupied and investment building. The Ripplingers also agreed to create up to 4.5 new full time equivalent employment positions, in addition to their existing 5 jobs, with wage levels of at least $15.00 per hour. The Ripplingers have proposed to expand their building size to 22,500 square feet in order to provide additional multi-tenant light industrial space that is needed in Elk River. Mr. Santwire has requested that the EDA absorb all of the cost for the extension of utilities from the street to the site in exchange for the larger building. The original estimate was $10,000 which was agreed to be split by the EDA and developers. Please refer to the attached memo by the City Administrator. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425