09-11-1995 EDA MIN - Laserfiche WebLink

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Economic Development Authority Meeting September 11, 1995 Page 4 Pat Pelstring of Public Resource Group, Inc. stated AI Larson, TL Feeding Systems, is concerned about the land price. tWo Larson plans to invest $100,000 and another $100,00-$150,000 in the project. TL Feeding requires approximately 7,500 square feet of office showroom and will lease the balance to another tenant or tenants. Bill Rubin stated this transaction needs the cooperation of the City and its EDA, property owner and expanding company, because of a long term benefit for the community, jobs, tax base, etc. If an agreement is not reached, the EDA needs to identify another site for TL Feeding, Inc. . Bill Rubin outlined changes to the TIF budget including a new section on LGA/HACA reductions. Because of the high acquisition price of a 3-acre site, Bill Rubin suggested that the TIF plan budget be increased to reflect a land price of $1.25 per square foot. If TL Feeding Systems acquires the lot for less, no budget amendment is needed. If the TIF budget is not overstated and the acquisition price is higher than the existing TIF budget, a plan amendment is needed. This takes 45 to 60 days to complete. In addition, he outlined the TIF policy relating to maximum TIF grants not to exceed 15% of a project's finished market value. Bill Rubin suggested that the EDA recommend to the City Council that it waive the 15% maximum grant for this project as it is the first industrial user in the Business Park. President Gongoll stated the consensus is we can do within reason is to benefit everyone. to move forward, whatever Commissioner Duitsman asked about TL Feeding's equity contribution to this project. Bill Rubin stated that the TIF application indicated a $100,000 equity contribution plus TL Feeding will incur the cost of acquiring the site, estimated at $150,000, or more, for a total contribution of $250,000. According to the application, the project is estimated at $850,000. The public hearing was closed at 7:30 p.m.. COMMISSIONER FARBER MOVED TO ADOPT RESOLUTION NO. 95-4 AND TO HAVE THE EXECUTIVE DIRECTOR MAKE REVISIONS TO THE BUDGET AND TO INCLUDE A NEW SECTION TO THE TIF PLAN BY ADDING THAT THE CITY ACCEPTS THE OPPORTUNITY TO MAKE THE QUALIFYING LOCAL CONTRIBUTION IN LIEU OF A LGAjHACA REDUCTION. COMMISSIONER HOLMGREN SECONDED THE MOTION. MOTION CARRIED 6-0 COMMISSIONER DWYER MOVED TO RECOMMEND THAT THE CITY COUNCIL WAIVE THE 15% MAXIMUM TlF GRANT FOR THIS PROJECT. COMMISSIONER HOLMGREN SECONDED THE MOTION. MOTION CARRIED 6-0. 9. Review Concept Plans for Mssissippi Riverfront Pathway Proiect Bill Rubin reviewed plans for the Mssissippi Riverfront Pathway. On October 2, 1995 there will be two public hearings: the HRA will conduct its hearing at 5:00 p.m. and the City Council hearing is at 7:00 p.m..