11-10-1997 EDA MIN - Laserfiche WebLink

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Economic Development Authority Meeting November 10. 1997 Page 4 e $1.2 million and there will be a creation of 20 to 25 jobs through businesses moving into this facility. Gary Santwire. representing the developer, indicated that the biggest extraordinary cost associated with this project related to private storm water control. septic system. and street expenses. Paul Steinman indicated that the penalty to the city for creating this T1F district is estimated to be $20.000 and that this penalty can be funded by the EDA through use of the city's development fund. This $20.000 would be a contribution to the project. COMMISSIONER FARBER MOVED TO APPROVE THE CONCEPT FOR TAX INCREMENT DISTRICT NO. 17 FOR THE DECKER INDUSTRIAL FACILITY AS DISCUSSED. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Tax Increment Concept Discussion - Morrell Proiect Executive Director Paul Steinman provided an overview of the T1F request. Paul noted that the Morrell Companies are proposing to construct a 45,000 square foot trucking/distribution/office facility and that they are requesting up to $300,000 in tax increment assistance. Paul noted that the proposed project was approved in June 1997. However, in October 1997, at the request of the Morrell Companies. a number of the development requirements were reduced by the City Council in order to make the project less expensive. e Terry Morrell indicated that the project will cost the Morrell Companies approximately $2.1 million in construction cost excluding land, and that the $300.000 in assistance is necessary for unusual development costs including soil corrections and mitigation of the wetlands. The company does not want to reduce the quality of the project so. in order to save money. the project was downsized. Even with the downsizing of the project, assistance is still needed. Commissioner Holmgren indicated his support for T1F assistance provided that Morrell Companies completely vacate its existing site at the comer of School and Jackson. and that the project is developed so that a Phase II can be constructed to add in the project reductions that were necessary due to financial constraints. In response to a question regarding the financial penalty for this T1F proposal, Paul Steinman indicated that the city's contribution would be its financial participation in the signal at Highway 10 and 171 sf Avenue. Commissioners Dwyer and Bender agreed with the concept of assistance provided that the business is relocated off of the corner of School Street and Jackson. e Terry Morrell indicated that the company's plans for the corner of School and Jackson is to clean up the site. demolish the building, and sell the approximately 3.2 acres. No city financial assistance is planned to be requested for this effort. However, the company hopes to add one additional mini storage building to the area before the site is subdivided and sold.