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HomeMy WebLinkAboutHEDRA 09-10-09 PacketA very short HRA meeting will precede the EDRA meeting. HASTINGS HOUSING & REDEVELOPMENT AUTHORITY Agenda far September 10, 2009, 6:00 p.m. City Hall City Council Chamber I. Quorum. II. Minutes of July 9, 2009 III. Business Resolution transfetrinb administration of Hastinbs Tax Increment Districts #3 and #4 to Economic Development and Redevelopment Authoritu. IV. Reports Completion of transfers and dissolution. V. AdjoutYt HASTINGS HOUSING & REDEVELOPMENT AUTHORITY Minutes of July 9, 2UU9, 6:UU p.m. CSty Hall CYt~~ Council Chamber I. Quorum: Commissioners Hollenbeck, Keena and Toppin present; Martodani and Holzem absent. Staff: Grossman. Vice Chair Hollenbeck called the meeting to order. II. Minutes of Tune 11, 2009. Keena moved, Toppin seconded approval; motion carried. III. Business Toppin moved and Keena seconded Resolution 3-2009 directing the execution of documents to assign all HRA leases, agreements and loan security documents to EDR.A; motion carried, 3-U. IV. Adjourn. Toppin moved and Keena seconded adjournment at 6:05. Motion cat'ried. HOUSING AND REDEVELOPI\iENT AUTHORITY IN AND FOR THE CITY OF HASTINGS RESOLUTION 4-2UU9 A RESOLUTION DIRECTING THE EXECUTION OF ASSIGNMENTS OF ALL CURRENT AGREEMENTS AND SECURITY DOCUMENTS PERTAINING TO EXISTING TAX INCREMENT DISTRICTS NO. 3 AND NO. 4 TO THE HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Dated September 10, 2009 Commissioner adoption: introduced the following resolution and moved its WHEREAS: The Hastings City Council established flte Housing and Redevelopment Authority in and for the City of Hastings (HRA) by Resolution on August 3, 1971; and WHEREAS: The Hastings City Council established the Hastings Economic Development and Redevelopment Authority (EDRA) by Resolution on September 1~, 2008, and by Resolution on November 16, 2008, both to be effective January 1, 2009; and WHEREAS: The above resolutions directed that the administration, control, authority, operation and funding of programs and projects, and the property, agreements, mortgages, bonds and obligations of the HRA shall be transferred to the EDRA as soon as practical after January 1, 2009; and WHEREAS: The HRA Board directed officials and staff to take actions necessary to transfer all HRA assets, property and agreements to the EDRA by Resolution on Janu:uy 8, 2009; and WHEREAS: The EDRA Board accepted the assets, property and agreements of the HRA and covenants to perform the terms and conditions of loan, purchase, development and lease agreements executed by the HRA, by Resolution on January 8, 2009. NOW THEREFORE BE IT RESOLV"ED by the Board of Commissioners as follows: 1. The HRA shall assign, transfer and convey to the Hastings Economic Development and Redevelopment Authority, a public body corporate and politic, under flee laws of flee State of Minnesota, any and all rights, title, interests and obligations the HRA may have, whatsoever, in Hastings Tax Increment Financing District No. 3 (Guardian Angels Housing District) and Hastings Tax Increment Financing District No. 4, (Downtown Ri~~erfront Rede~~elopment District) including but not limited to all contracts, purchase agreements, tax increment note agreements, loan agreements, promissory notes, repayment agreements, mortgages, security agreements, assignments of rents, fixture financing statements, subordination agreements, leases, demolition agreements, development agreements, easements, cash on band, financial accounts. accounts receivable and any other documents evidencing an interest owned by, or obligation of, the HRA. 2. The Chairperson of the HRA is hereby authorized to execute on behalf of the HRA all documents necess:uy to effectuate such assignments, transfers and conveyances. Commissioner seconded the foregoing resolution and upon being put to a vote, the follo~nnng commissioners voted in favor of the resolution: Ayes: Nays: Absent: Whereupon the Chairperson declared the Resolution duly adopted by the HRA Board of Commissioners. Pamela Holzem, its Chairperson ATTEST: John Crrossman, Director HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPl\1ENT AUTHORITY Agenda for September lU, 2UU9, 6:UU pm. City Hall CYtp Council Chamber I. Quorum. II. Minutes of August 6 and August 13, 2009 III. Bills IV. Business A. Residential loan approval B. Downtown tree replacement proposal C. City-NSP lease consent D. Labboy (Dental Ai'ts) land credit recommendation to Council V. Reports and Information A. Industrial Park Sheet reconstruction and sign replacement B. Do~nmto~nm Hudson Mfg. Co. update Bridge replacement update C. Vermillion Linn property update P&L Midtown update D. Other activity Riverbend Pet Hospital and TCCCF VL Adjourn AGENDA NOTES FOR 9-10-09 BILLS S.E.H. Vermillion & 23"~ $9,984.58 (Aug) $2,736.57 (Sept) project ended Wilson Bradley Deike Sebesta Bloomb°g Ehlers Emily's BUSINESS Hudson relocation Levies/dissolution Hodson-Intek P&L TIF Study Annual reports Refreshments $32.25 $224.00 $3,370.00 $997.00 $237.00 $53.83 RESIDENTIAL LOAN APPROVAL. Consider home ov~mer request for EDRA residential and emergency loan to pay assessment. Attached memo. DOVt'NTOVt'N TREE REPLACEMENT AUTHORIZATION Consider staff proposal to fund replacement of three street trees, estimated cost $11,500. Attached memo. CITY-NSP LEASE APPROVAL Consider consent for sublease of small space inside 412 4~~' Street, former UBC building owned by EDRA, by City to Northern States Power, for $3,000 pa. Attached memo. LABBOY (DENTAL ARTS) LAND CREDIT RECOMMENDATION 1\Iake recommendation to Council for sale of 1 acre in Industrial Park to Labboy_ Enterprises using the land credit (business subsidy) program. Attached memo. REPORTS AND INFORMATION INDUSTRIAL PARK STREET RECONSTRUCTION AND SIGN REPLACMENT Construction continues on schedule for the public improvements. Staff has sent the proposed sign drawings to all Industrial Park businesses for comment and review. We've received back :wound half a dozen comments; the favored choice is for signage with our City font. It was suggested that the sign contain the words "Hastings Business Park" and that the spiral bridge image be replaced with "Spiral Boulev:u'd" for better orientation. COMPANY UPDATE Sebesta Blomberg has completed a draft report evaluating moving Hudson Sprayers to the vacant Intek building on lOr~' Sheet. The project appears feasible including construction of a 29,000 s.f. addition onto the Intek building. Staff will review the report and present updated information at the meeting. BRIDGE REPLACMENT UPDATE The City is reviewing the Municipal Consent Agreement and assisting with the development of the Visual Qualify Manual. VJe do not believe MnDot has extended a formal offer for the partial taking of Hudson vet. Mn Dot is prep:u ing to release the RFP to selected design build contractors in November. RIVERBEND PET HOSPITAL AND TCCCF Staff has explored the use of TCCCF funding to close the $50,000 gap in funding the Riverbend Pet Hospital project. The loan would be subordinate to SBA and piimaty bank; the amount of equity :utd collateral available would not meet the terms for TCCCF funding. It appears the terms for SBA loans are more competitive than TCCCF. Staff will be reviewing the benefits of remaining within the TCCCF program or to `cash out' and give assistance in other ways. HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY n1INUTES OF SPECI_AL n1EETING AUGUST 6, 21109, 1 P.M. CITY HALL Quorum: Commissioners Holzem, Alongi, Toppin, M:n-todam, Hollenbeck and Schultz present. Staff: Osberg, Hinzman, Rausch and Grossman. President Holzem called the meeting to order at 1 p.m. A. Grossman summarized current conditions on Hudson 1\Ianufacturing, PAL Midtown, the Linn property at 15~~' and the pending Dental Arts building in the htdush ial Park. B. Hinzman summarized the backround material for the workshop. • Broad responsibilities inherited from HRA, IP and EDC • EDA/HRA powers • Nearby citys' economic development programs and m:nketing examples • Existing programs and fiords C. Osberg introduced and facilitated discussion of the workshop topics: Commercial area revitalization. • The smaller and older properties south of the Vermillion River :u e an opportunity. • A connection from Vermillion to Veterans Park and on toward new residential to the east via 21'~ and/or 23"~ would meet several needs. It has been planned but lacks funding. • A haffic signal in the 21st - 23rd :uea will need more development/traffic to meet 1\InDOT requirements. • Current vacant commercial space (100,000 sf) drives rental rates down and defers maintenance and improvements. • Focus on Vermillion Street. Parts of it need attention, it has a master plan and is a designated redevelopment area. • Three major activities are planned for downtown: a ne~a~ bridge, commuter center/station, Levee Park. EDR-1 and the City' role in and funding assistance important for each. All will contribute to ongoing vitality. • The Post Office and Hudson Manufacturing could change and may need attention. 2. Business Park strategy, ne~a~ and existing. • Existing park has location issues. Anew park should be on the west side of the City, closer to the airport and access to the western metro :u ea. • Sale of some existing industrial land could fund acquisition or development of a ne~a~ park. • Need to get started on location right away. New business park could be anywhere on west side. • Public look at several options for the new location • Consider whether the Cilu needs to own it or can work with an o~nmer • Anew park must have ttp-to-date and dependable communications and power. • Clusters and niches are usually supported by nearby workforce training and education. There are four schools within 45 minutes of Hastings. Need to know what their specialties are. • 1\larketing needs to be electronic as well. 3. Business assistance. • SBA is doing all it can to help business financing at this time. A loan program may not be needed at this time. • A program has to be carefully crafted to avoid unnecessary duplication and drain on resources. Criteria need to be specific and objective. Budgeting needs to be economical. • Commercial lending should not be emphasized, but special cases where other resources are not available will be considered. 4. Senior and affordable family housing. • .Assess condition of housing through the 1960s and 1970s in addition to historic. • Identify ways to support renewal of different ages of housing. • 1\lake a concerted effort in the oldest neighborhoods on the East side. • .Address foreclosures by providing some assistance to buyers who reside in and improve distressed, vacant properties. • Foreclosure assistance could take a form that proeides the same amount of aid to many properties, such as an allo~a~ance or investment match as a deterred loan. 5. Transit. • The EDRA role is to support transit services by provided real estate for a downtown station or commuter center so that parking will not be an issue. • EDRA also can facilitate transit oriented development in the downtown project area and neighborhood. • TIF dishict No. 4 includes the HRA rivertront property and the station block. Project increment can be used for acquisition, site preparation and public improvements. • Station area developments could also address housing priorities. 6. Communications. Rausch presented the CityImage marketing proposal for discussion. • CilyImages proposal is a good approach. The feedback study will be useful. • General Hastings promotion: what to market and to whom? • Avoid duplicating Convention & Visitors (Chantber of Commerce) marketing. • lAl:u'keting is switching to electronic media. Print advertising maybe in'elevant. Attending conventions and associations may also be helpful. • Paying for marketing is an EDA role. Some former IP funds are available. D_ Summary and direction Poll on priorities, 1 is high, 5 low. Business park development, focus on new location: 1.1 Commercial dishict revitalization, focus on Vermillion: 2.0 Communications: 2.3 Housing maintenance programs: 3.6 Business loan progratn: 4.8 Transit continue existing role and support 2. Next steps to be discussed. E. Meeting adjourned by acclamation. Hastings EDRA Hastings Economic Development and Redevelopment Authority 6:00 p.m. Hastings City Hall Minutes of August 13, 2009 HEDRA Commissioners Kurt Keena, Bob Hollenbeck, Pam Holzem, Ron Toppin, present Commissioner Anthony Alongi, Danna Elling Schultz and Dennis Martodam absent Staff present: Hastings EDRA Director John Grossman, Planning Director John Hinzman, and Community Relations Specialist Shannon Rausch, I. Meeting called to order at 6:OOpm II. Approval of Minutes Minutes from the July 9, 2009 and special meeting on August 6 were presented, with one correction noted Commissioner Toppin moved to approve the minutes with no changes. Keena seconded the motion; Motion passed 4-0 III. Bills Commissioner Keena moved to pay the bills. Toppin seconded the motion. Motion passed 4-0 IV. Business A. 2010 Budget: The budget presented was $100,000 lower in both revenues and expenses than the draft budget discussed at the July meeting. That amount is the EDA revenue item and the commercial-industrial development expense item. The City Administration and Council Finance Committee did not recommend an EDA levy for this year. Given current revenue conditions, the City needs all of the statutory levy limit to balance its own budget this year. The EDA levy would be subtracted from the City's levy limit, thereby reducing the City budget. As discussed the Hastings EDRA had intended to set aside EDA levy funds for business development each year. Discussion was had whether or not the City would continue to deny EDRA's request to levy in the coming years. Commissioner Toppin recommended that staff draft a memo to the Council outlining the need for the EDA levy, express the understanding of the current budget situation, but stress that EDRA will need to begin raising funds in order to carry out its economic development responsibilities. Commissioner Keena moved to pass the 2010 Budget, Commissioner Hollenbeck seconded the motion. Motion passed 4-0 Commissioner Toppin moved the 2010 Levy, Resolution 4-2009, at the statutory rate of .0185%, Commissioner Keena seconded the motion. Motion passed 4-0 Hastings EDRA: 08/13/09 B. Industrial Park Signage: Staff presented 4 final concepts for the Industrial Park entrance sign. This new sign will be smaller than the existing sign. Discussion was had on what to call the park, "Industrial Park' or "business Park'? Of the options presented the Commission preferred options C and D without "Industrial' but directed staff to solicit comments from the business owners in the Industrial Park. C. Riverbend Pet Hospital. The Riverbed Pet Hospital is looking for gap financing to build anew/ larger clinic in their existing location. Staff is currently checking with TCCCF Funds to see if they have anything that would help them. If that does not look like a viable option they are wondering if the EDRA would be willing to consider creating a TIF district, or possible providing some form of a gap loan to help them with the financing. The staff thought that qualifying a TIF district in this area would be doubtful. The commission decided to wait and see what TCCCF could do. V. Reports: Industrial Park: Dental Arts is working on their plans at this time and they should be coming forward with those soon. VI. AdJournment: Commissioner Keena moved to adjourn at 6:40 p. m., CommissionerToppin seconded; Motion passed 4-0 Next meeting is scheduled for; September 10, 2009 at 6:OOpm in the Council Chambers. Shannon M. Rausch, EDRA Secretary Hastings EDRA: 08/13/09 HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Resolution No. ~-ZC~C~~/' August 13, 2009 G THE LEVY OF A SPECIAL BENEFIT TAX wtv 469.033, ~UBll1YIS1ON 6, AND APPR OF A BUDGET FOR FISCAL YEAR 2010 Camrnissioner Tc5 p{}~~ n introduced the following resolution and moved its adoption: WHEREAS, the Hastings Economic Development and Redevelopment Authority (the "Authority) was created by the City Council of the City of Hastings {the `°City") pursuant to Minnesota Statutes, Sections 469.090 to 469.1081; and WHEREAS, the Authority was granted all of the powers of a municipal housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to 469.047 {the "Act"); and WHEREAS, Section 469.033, Subdivision 6, ofthe Act, as amended, permits the Authority to levy and collect a special benefit tax of up to .0185 percent of taxable market value in the City upon all taxable property, real and personal, within the City; WHEREAS, the Authority desires to levy such tax in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the levy of such a special benefit tax is subject to the approval by resolution of the City Council of the City; and WHEREAS, the Authority is required pursuant to Section 469.033, Subdivision 6, of the Act to, in connection with the levy of such a special benefit tax, formulate and file a budget in accordance with the budget procedure of the City in the same manner as requued of executive departments of the City; and WHEREAS, the Authority has before it for its consideration a copy of a budget for its operations for the fiscal year 2010. NOW, THEREFORE, be it resolved by the Board ofConunissioners ofthe Authority. Section 1. The budget for the operations of the Authority presented for consideration by the Authority is hereby in all respects approved. Section 2. The Authority hereby authorizes and forwards said budget to the City Council for its approval. Section 3. There is hereby levied, subject to the approval of the City Council, a special benefit tax pursuant to Minnesota Statutes. Section 469.033, Subdivision 6, in the amount of .0185 percent of taxable market value within the City. Section 4. The Authority hereby requests the approval by resolution ofthe City Council of the City of Hastings of the special tax benefit so levied pursuant to this Resolution and requests the City Council to take such other actions as are necessary to levy and certify such tax. 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Eor,__~e~- F~SiE: In"hrle: d~~i TEFI C T; USE: San-J./~° THFU uJ-L'~~~~° TF3]IisJTPllf: E~::TH ___ _~i191T ',_ELECTT:11 Ip IT F_]ISE. 1 15/x_ J/~1 THF'O 1 1~ ~_ ~~-_ GEP_T-FSMEIiT F_]P3E: - THF'U - rQTP~ FLIT IDS OIIL3: 1-0S~ TIE iLRIT LILY: 3ES -I LJUE YE' TFI TEC JJIpIT EG GL3IT '._EL-JTT:11: YEIIIT ~tTT IC9IS [ETF.IL I IIT S!LII IT "ITH HO ~I TI 'ITY: YE9 TEIIIT EIISI R~QSF'=Sd~_EP: liC~ TEIIIT FEIID(F'. 11=tE: lE'3 PFITIT THJSE~IT S': YE9 PFITIT M1i?TITHLY TJT=H£: YE9 TEIIIT 3F'i3IG T~_:T§Li: i4:~ TEIIIT: II I'dLSSE'FS F ~3E EFF ]: EY: 1P.1IE EID ~::F FEE'~IF'T `... September 4, 2009 TO: Hastings EDR~ FROl\f: John Crrossman RE: Residential loan to 1\,larcia Biermann, 1413 Maple St. A,fs. Biennann has made progress on meeting the conditions EDRa specified in January and February 2009 to be met prior to approving a residential loan to pay off the City's assessment on the property for replacing a sewer line. Ms. Biermann asked that the loan be deferred in order to reduce her mortgage payment, thereby making it possible to keep the house. The EDRA conditions were: 1) The mortgage company would restructure the terms to make the payment affordable to her. She has recently been offered a lower payment under The 1\,laking Home Affordable federal program. The September flu'ough November payments are a trial period, at the end of which she will be offered a rewritten mortgage. Ms. Biermann affirms she can make the restructured payments, without the assessment. 2) Documented household income qualifies as low/moderate income for 3 persons. Proof of income and household expenses have been provided which do qualify ly1s. Bieimann as moderate income. This is the income criteria in EDRA's loan programs and also flee City s to qualify for assessment abatement for street construction. 3) The Board asked for confirmation that the assessment for sewer replacement was an exceptional cost for a homeowner. Public Works Dep<utment did confirm that the normal range of costs is $3.000 to $5,000 for fliis type of work. Soil conditions were responsible for the higher cost, $9,174. The assessment added $112 to the monthly payment. The Board indicated they would consider a combination of $5,000 as a deferred loan and the remainder as a forgivable loan. The assessment balance at the beginning of 2009 was $8,526.83. The balance will be reduced by payments made during 2009, so the current amount of the forgivable loau will haee to be determined. The 2009 budget includes adequate fiords for residential loans and for emergency grants for this request. The deferred part would be paid back on sale of the house. The forgivable p:ut would be reduced by 20% each year she owns the house. The loan will be secured by a note, agreement and mortgage (second) on the property. Staff will time the execution of the loan and payoff to the trial period, but the first consideration will be paying off flee assessment in time so that flee mortgage company will not Kaye to escrow for 2009. ACTION: Consider approval for the package as described. If approved the documents will be drawn and executed and the assessment paid off. September 3, 2009 TO: HEDR.~ Board FROl\1: John Crrossman RE: Tree replacement on Sibley Street HEDR~ is asked to fund the removal and replacement of three street trees on Sibley Street, between 3"~ and the alley to dte north. The cost is estimated to be under $11,500. These three u e potential hazards and should have been removed some time ago. Parks and Public Works do not have the funds to do so. Street trees were installed on Sibley during last downtown street project, in 1986. Two have been removed in the last few years -one destroyed the sidewalk and the other caused the sewer line to fail- One was at HRA expense and the other at the properly owners's expense. Three of the eight remaining trees have gotten nmch bigger dtan expected or desired. They are between two and three stories tall and over 12" in diameter. Kevin Smith, Parks Superintendent, believes these three could damage the adjacent buildings, utilities and sidewalks and should be removed as soon as possible. See the attached summary of the condition of all eight, and the costs of replacement per tree: $3,678.13. Tom Montgomery, Public Works Director, is planning major maintenance of downtown sheets and sidewalks, perhaps in 2011 or 2012- He would replace the other four trees at that time and include them in the cost of street improvement projects during that ye<u . ACTION: Staff recommends the Board approve funding the replacement of three trees, under Parks Department supervision, including removal, concrete work, tree grate and new tree at a cost of $3,700 each. September 3, 2009 TO: EDRA Board FROl\1: John Crrossman RE: Consent to NSP sublease, portion of 412E 4~~' Street. NSP has indicated they would like to lease 296 feet of office and parking in the EDRA building (former UBC). This was proposed to them by Tom Montgomery, Public Works Director, in lieu of placing a trailer unit on their substation property at flte west edge of the cilu beside 55. He is responsible for the maintenance of both UBC buildings EDRA leases to the City. EDRA is asked to consider consenting to the City subleasing the space, with the rent passing through to the EDRA. Terms; Length of lease: same as City: November 7, 2013. Notification of termination: The City has a 90 day notification period. Dan Fluegel are still talking with Xcel about the period. They would like more, up to 180 days. Staff will have a recommendation by the EDRA meeting on September 10. Rent: $3,000 per year, all included except phone. The $250 monthly payment would be passed through to the EDRA. Liability: Lease vtrill include hold humless, liability and insurance provisions. The building is also insured under the Cily's master policy. Notes: As this building is the furthest from the depot, and the best constructed, it is likely to be the last one the EDRA would turn over for comnmtter parking. As it will still take some yews to even establish bus rapid transit, the length of the lease and notification period do not seem to be a problem. The station block, Block 1 and the former UBC building site adjacent to 3"~ Street would most likely be more than sufficient for start-up park and ride facilities of approximately 200 to 250 spaces. ACTION: Consent to Cily to sublease space to Northern States Power in 412E 4~~'.. September 3, 2009 TO: EDR.A Board FROl\1: John Grossman, Director RE: Labboy Enterprizes, LLC (Gary Iocco) The EDR~ Board's role in Industrial Park land sales is reviewing the specifics and terms of the purchase and land credit proposal and making a recommendation on the sale and flee business subsidy to City Council. Upon EDRA approval, the development and business subsidy agreement will be prepared. Site and building plan review is the role of the Planning Commission. These reviews and agreement will all be presented to Council on October 5. Given approval, the goal is to close by the end of that week. EDRA gaee preliminary approval to this proposal at the meeting of April 9, 2009. See the attached updated information form and map shovaing flee location of Lot 7. Red Wing Dental arts, the business, is a full service dental laboratomy producing dentures partials and restorations. Labboy Enterprizes LLC will be the property owmmer. Gamy Iocco is the President of the business and the managing partner of the LLC. Terms 1. The City will deed one acre valued at $71,874 to Labboy Enterprizes LLC for a price of $1.00. The balance of the value will be defened for five years. 2. Labboy commits to have 12 jobs, employees of Red Wing Dental, on flme site wiflmin 2 years. New hires will be a minimum of $10.00 an hour. Facilities now in Cottage Grove and Red Wing, are to be combined in Hastings. They anticipate 15 jobs in five years. 3. Labboy proposes to build anoffice-lab of about 6,048 sf at a cost of $414,300, and with interior build out $569,600. The building and pamking lot improvements will exceed 20% lot coverage. Red Wing Dental will be the only tenant. 4. Labboy commits to remain in business in Hastings for five years. 5. If in five years, the credits do not exceed the defen ed land value, or if the business ceases to operate in Hastings, Labboy will owe a prorated amount of the land value to the City and that amount could be assessed if necessary. Business Subsidy Analysis. 1. The land credit inforation sho~a~s that the credits will exceed the defemred value of the land, largely because (in five years) 15 jobs at an average of $16.50 an hour create u payroll of approximately $700,000. Labboy Enterprizes LLC should not owe the City any portion of the deferred land price ($71,873). 2. The project meets or exceeds the following EDRf1 business subsidy criteria: • Two or three jobs per acre of land. • A minimum of $10.00 an hour for new hires. • The building itself is 14% ofthe lot. This is short of the 20% normally expected, but with parking and drives, lot coverage is 20%. This is offset by the unusually high number of employees for the size of the building. 3. The project has the following public purposes: • Increases the tax base by building on tax exempt property. • Adds twelve to fifteen jobs at living wages to Hastings. • Adds to the Graz iety of employment opportunities in Hastings. • Uses land in the city's industrial park and is an appropriate business near residential areas. ACTION: Make recommendation to City- Council on the sale of City land to Labboy Enterprizes LLC and the terms, criteria and public purposes of the land credit (business subsidy). INFORMATION FOR LAND PRICE SUBSIDY AGREEMENT 1. Nance, address, phone of developer (dte persons or entity- drat will be dte owner of the land) Gary Iocco LabboyEnterprizes, LLC 1434 Old N~est_Main Slr~eet, Red Wing, _/LIIJ 55066 651-388-4464 2. Developer's type of entity (corporation, partnership) recorded widt the Secretary of State Limited Liability Corp 3. Developer's Federal Tao ID number 41-I9475I9 4. Full names and title (president, etc.) of those signing agreement for the developer Gary Iocco, Managing Partner 5. Property: the acreage and legal description of the city property to be sold (2.1): Lo! 7, Haslzngs Indush~ial ParkNa. ? 1.0 acre, 43,560 sf 6. The market value of the property to be acquired (3.2) $1.6i sf = $71,874 7. The agreed purchase price (3.2) $1.00 8. Difference between purchase price and market ealue of the property, the subsidy (3.8): $71,873 9. Date to which payment is deferred (3.8) 5 years after date on Certificate of ~Occupatzan issued by Hastings Building Official 10. Costs to be paid by developer (3.4, 3.5) Purchase price Title work and insurance as needed Surrey (site plan requirement) Environmental investigations as needed City's costs for legal, financial review and closing Recording fees for deed, mortgage & development agreement 11. Proposed size and market value of buildings to be constructed on the properlu (2.2) 6,048 sgft. $372,870 -the assessors market valise is are estimate, 90% of $414,300. 12. Proposed annual payroll (increase over existing) on the properly in fiveyeus (22) $700,000 13. Estimation of credits (3.8) See examples in summary. a. construction credit example: assessors market valise of 5'37, 870 divided by IO = 537, 387 credit b. jobs credit example: 5?00, 000 annual payroll divided by 537, 000 = 36,~ 36X 513, 000 = $313, 000 credit 14. Job and wage goals to be reported to Minnesota Department of Trade ~ Economic Development (3.9) to comply with Business Subsidy Act. a. Number of new jobs created by the business two years from occupancy: 13 in lWO Vears b. Hourly wage of new jobs to be no less than: No less than $10.00 per hour. 15. Construction (4.3) a. Building construction costs (include puking lots, not land): 5-t1-F,300 b. Appro~mate beginning and completion dates of construction and all site work: Starling October I5, 3009, completion by June I5, 3010 1G. If the developer is not the same entity as the business which will occupy the building and provide the job creation, provide the follo~a~ing for each tenant: developer zs also sale teizmzt u. Business name Red N%ingDentalArts b. Address and phone Same as developer a Names and titles of o~nners of the business Same as developer d. Type of entity recorded with state Minnesota Sub S L'orparatian e. Tax ID number of business. 41-1314441 f Nature of the business (what product, process, material) Dentallaboralory g. Percent of building space to be occupied by business 100 h. Number of the jobs given above (No. 14) that this business be responsible for: 100% 17. Recent history of the business or if new, the owner's experience in the business and/or resume (Use separate page and business letterhead if available). 18. Business references, contact person and phone number: banker: Brzsce Downey, Gateway Bank, I~Iendata Heights, MN 651-X09-4b'00 21. List all lenders, contact persons, phone numbers Bruce Downey, Gateway Bank 22. List all sources and amounts of public assistance including land, government loans and grants (including those you have or may apply for) Hastings Land subsidy yragrarn 23. The developer will have to provide business financial records to a consultant hired by the City. The information will be confidential to full extent the law provides. 24. Any lawsuits or actions pending against the developer, busines(s) or p:utners'? No 25. Nance, title, signature of person providing the above information. Garyloccq Managing partnerLabboy, LLC and President, Red Wing Dental Arts Date 9/2/09 26. Eligibility under EDRA subsidy criteria: a. Job arxd wage goals meet criteria ($I U mirximum arxd 2 yer acre) b. Plans will be reviewed to ensure confbrmace with zoning code c. Five year cammitmeizt to remain in community will be inclaeded in agreement. d Community costs great the lowest level: the value of one acre, the smallest ylatted parcel available; staff review anticipates no other cost or enviranrnental imyacts. 27. Public purposes under criteria: a. Increase tax base b. Create quality jobs an the site c. Enhance community economic stability: no other existing business oftlais type in city. Print Preview Dakota County, MN Page 1 of 1 .'~~ ,. 4 E I; ~ ,. ~"' Y Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not Map Scale guaranteed. This is not a legal document and should not be substituted for a title search, ~ Inch = 378 feet appraisal, survey, or for zoning verification. http://gis.co.dakota.mn.us/website/dakotanetgis/printPreview.aspx'?PrintOptData=Dakota C... 4/3/2009