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City of <br /> EW REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 7.1 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Public Hearing July 1, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Tax Abatement Application for Preferred Powder Coating, LLC Brian Beeman,Director of Economic <br /> Development <br /> REVIEWED BY <br /> Jeremy Barnhart,Deputy Director, <br /> CODD <br /> ACTION REQUESTED <br /> Hold a public hearing to consider tax abatement application for Preferred Powder Coating,LLC. <br /> BACKGROUND/DISCUSSION <br /> The owners of Preferred Powder Coating are requesting property tax abatement for the construction of a <br /> 100,000 square foot manufacturing facility in the city-owned Nature's Edge Business Center. The <br /> attached staff report describes the proposed project and tax abatement request that were reviewed by the <br /> EDA on June 24, 2013. This Abatement request meets all of the FDA's policies regarding employment <br /> and valuation. The EDA recommends approval of the tax abatement and business subsidy for the <br /> project following review of the project at a special meeting on June 24, 2013. <br /> The entire parcel (land and building) valuation will be used to repay the up-front assistance. Using the <br /> entire parcel is consistent with recent tax abatements in which the land price was written down. The <br /> estimated duration is 18 years. The statutory maximum is 20 years. <br /> 1Vlikaela Huot from Springsted will provide a brief overview of the independent but/for analysis that <br /> supports the abatement. <br /> State statute requires local government agencies to hold a public hearing to receive comment on tax <br /> abatement and business subsidies. <br /> FINANCIAL IMPACT <br /> Up to $576,939 in city tax abatement assistance. The city will use the 10.36 acre land site and an inter- <br /> fund loan from the Development Fund to provide the assistance up front to meet the needs of the <br /> business. All abatement dollars from the city and county will pay back the inter-fund loan and the land <br /> with a 3%interest rate. <br /> A request has also been made to Sherburne County for up to $576,939 of tax abatement assistance. The <br /> project will result in an estimated market value of$4,682,700 and will create and retain a minimum of 32 <br /> full-time jobs at hourly wages not less than $12.19. <br /> POWERED By <br /> A IR <br />