4.4.
Economic Development Authority (EDA)
- Meeting Date:
- 04/11/2019
- By:
- Sean Sullivan, Community Development
Title:
Review Site Concept and Recommendation for Public Hearing for Delta ModTech
Purpose/Background:
PURPOSE
To review proposed project concept, schedule and to begin process of creating a TIF District.
BACKGROUND (Subject Property)
The subject property is located at 8200 Bunker Lake Blvd NW on the western 20+ acres of Lot 1, Block 1, Alpha Development. The property is currently owned by Hageman Holdings, LLC. The property is vacant and is currently zoned E-3 Employment District which permits the proposed use. A concept plan is attached showing the location of the proposed project.
BACKGROUND (SLP EX, LLC, AMP EX, LLC & Delta Industrial Services, Inc. and Delta ModTech)
SLP EX, LLC and AMP EX, LLC plans to acquire the Subject Property and will be leasing to Delta ModTech (Delta Industrial Services, Inc.). Delta ModTech was founded in 1978 and began as a provider for servo systems and motion control in the machine tool industry. Today, they offer design and full production of motion controlled converting and packaging lines. Delta ModTech currently employs 125 people at its three facilities in Coon Rapids. Delta is a growing company and they are in need of more space.
BACKGROUND (Project , Assistance and Process)
City Staff has been working diligently with Delta ModTech and it project team to bring an exciting project to Ramsey. The proposed project consists of acquisition of a 43 Acre Parcel (20 acres for the current project), and construction of a 185,000 square foot manufacturing facility. The new facility is estimated to have a tax assessed value between $11-12 Million Dollars and generate between $350-$410,000 in property taxes annually. This new proposed facility would consolidate the three Coon Rapids facilities and create more efficiencies for the company now and into the future. The proposed project would result in a net gain of 145 jobs in Ramsey. 125 jobs would be relocated from the three Coon Rapids locations and the company is committed to hiring 20 more employees over the next two years with wages averaging $25/hr.
Delta ModTech has submitted an application for business assistance that City Staff and Ehlers are currently reviewing . This review process will include generating a TIF estimate, review of the subsidy level and addressing the "But For" test. Once this review and analysis is compete it will be shared with the EDA/City Council to determine if, and what level of assistance is warranted. Delta has indicated that financial assistance is needed to move this project forward. A public hearing will be required for the creation of a TIF district and the granting of a Business Subsidy. Staff is asking the EDA to consider making a recommendation to the City Council to start this process to call for a public hearing based on the attached schedules.
To review proposed project concept, schedule and to begin process of creating a TIF District.
BACKGROUND (Subject Property)
The subject property is located at 8200 Bunker Lake Blvd NW on the western 20+ acres of Lot 1, Block 1, Alpha Development. The property is currently owned by Hageman Holdings, LLC. The property is vacant and is currently zoned E-3 Employment District which permits the proposed use. A concept plan is attached showing the location of the proposed project.
BACKGROUND (SLP EX, LLC, AMP EX, LLC & Delta Industrial Services, Inc. and Delta ModTech)
SLP EX, LLC and AMP EX, LLC plans to acquire the Subject Property and will be leasing to Delta ModTech (Delta Industrial Services, Inc.). Delta ModTech was founded in 1978 and began as a provider for servo systems and motion control in the machine tool industry. Today, they offer design and full production of motion controlled converting and packaging lines. Delta ModTech currently employs 125 people at its three facilities in Coon Rapids. Delta is a growing company and they are in need of more space.
BACKGROUND (Project , Assistance and Process)
City Staff has been working diligently with Delta ModTech and it project team to bring an exciting project to Ramsey. The proposed project consists of acquisition of a 43 Acre Parcel (20 acres for the current project), and construction of a 185,000 square foot manufacturing facility. The new facility is estimated to have a tax assessed value between $11-12 Million Dollars and generate between $350-$410,000 in property taxes annually. This new proposed facility would consolidate the three Coon Rapids facilities and create more efficiencies for the company now and into the future. The proposed project would result in a net gain of 145 jobs in Ramsey. 125 jobs would be relocated from the three Coon Rapids locations and the company is committed to hiring 20 more employees over the next two years with wages averaging $25/hr.
Delta ModTech has submitted an application for business assistance that City Staff and Ehlers are currently reviewing . This review process will include generating a TIF estimate, review of the subsidy level and addressing the "But For" test. Once this review and analysis is compete it will be shared with the EDA/City Council to determine if, and what level of assistance is warranted. Delta has indicated that financial assistance is needed to move this project forward. A public hearing will be required for the creation of a TIF district and the granting of a Business Subsidy. Staff is asking the EDA to consider making a recommendation to the City Council to start this process to call for a public hearing based on the attached schedules.
Notification:
N/A
Observations/Alternatives:
Staff is looking for a recommendation by EDA to the City Council to call for a public hearing and to move this project concept forward and start the TIF process. If there are comments and suggestions relating to the Site Plan and/or project it should be included and communicated to the Developer.
Funding Source:
The Developer has submitted a TIF Application Fee of $10,000 to cover the costs to process the TIF Application.
Recommendation:
Staff recommends that the City Council to call for a Public Hearing for the Modification to the Development Program for Development District No 1 and the Proposed Establishment of TIF District No. 17: Delta ModTech.
The Planning Commission reviewed the project from a Planning/Zoning perspective. Consensus of the Planning Commission was positive, and recommended moving forward to official Site Plan Review for compliance with the Comprehensive Plan and Zoning Code.
The Planning Commission reviewed the project from a Planning/Zoning perspective. Consensus of the Planning Commission was positive, and recommended moving forward to official Site Plan Review for compliance with the Comprehensive Plan and Zoning Code.
Action:
Motion to recommend to the City Council to Call for a Public Hearing for the Modification to the Development Program for Development District No 1 and the Proposed Establishment of TIF District No. 17: Delta ModTech
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Sean Sullivan (Originator) | Sean Sullivan | 04/03/2019 01:25 PM |
| Brian Hagen | Tim Gladhill | 04/05/2019 08:12 AM |
- Form Started By:
- Sean Sullivan
- Started On:
- 04/02/2019 09:09 PM
- Final Approval Date:
- 04/05/2019