5.2. & 5.4. EDSR 08-14-2000 - Laserfiche WebLink

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Staff has evaluated the Equity Management's Tax Increment Financing • Application and has determined that subsidy assistance is appropriate for the project based on the level of assumed risk for the investment project and the project goals to be met by the development. The public purposes to be met by the development include 1) Enhance & diversify the City's industrial tax base, and 2) Contribute to the fulfillment of the City's Strategic Plan for Industrial Development, and 3) Eventual job creation. The project has potential to stimulate additional private investment in the West Business Park and also provide leasible light industrial space that is currently lacking in Elk River. Following the public hearing, the EDA may determine that the creation of jobs is not a primary goal of the project and henceforth, set wage and job goals at zero. The EDA may consider an alternative project goal for the subsidy to be the construction of a minimum of 22,000 square feet of leasible light industrial space within one year. Staff has worked with planning and engineering staff to design a global area storm drainage system to accommodate the three developments currently proposed in the West Business Park. Staff recommends that a condition of the property sale include the Equity Management, Inc.'s participation in the global storm drainage plan. This requirement has been drafted as part of • the purchase agreement. The expenditure of approximately $10,000 for extension of water & sewer has been a point of negotiation between staff and the developer. Please refer to the attached memo from the City Administrator for staff recommendation. Requested Action Following the public hearing, staff recommends that the EDA consider action on the following items: 1) Sale of the described property to Equity Management, Inc. in accordance with the purchase agreement and approved plans and specifications; and 2) Granting subsidy assistance in the amount of$175,900 per the Performance/Assistance Agreement to Equity Management, Inc. with recommendation to City Council for final approval. Attachments • Site Map • Application for Tax Increment Financing—Equity Management, Inc. • Purchase Agreement— Equity Management, Inc. • Performance/Assistance Agreement—Equity Management, Inc. •