ITEM: 11.7 DEVELOPMENT BUSINESS - Bryan K. Schafer, Planning and Community Development Director
Title
RESOLUTION TO APPROVE DEVELOPMENT AGREEMENT WITH CSM DEVELOPMENT, PHEASANT RIDGE
Schedule of Actions
Background
CSM purchased 140 acres of industrial property adjacent to Aveda located at Lexington Avenue and I35W in 2002. In 2004 they reached an agreement with Aveda Corporation to construct a 125,000 square foot packaging/warehouse facility. Aveda is Blaine's largest employer with approximately 600 employees. Since that construction Aveda has used the facility to package and ship its products worldwide.
Currently Aveda leases this space from CSM and is in need of another expansion. An application has been submitted by CSM for a 61,200 square foot addition to the warehouse building. The warehouse expansion will free up space in the primary building which will allow Aveda to keep segments of its manufacturing operation intact along with those associated jobs at their primary location next door.
The $125,000 assistance commitment would be funded through available pooled TIF and is consistent with the TIF Plan for this area and the City's Business Assistance Policy based on retention of existing jobs and growth of tax base. The total project cost, with tenant finish, for the expansion is estimated at just over $3 Million. The TIF funds would be used to reimburse CSM up to $125,000 for project costs related to site improvements, infrastructure and development fees for the project.
Recommendation
By motion, approve the Resolution.
Attachments
Location Map
Development Agreement
Body
WHEREAS, the Economic Development Authority of the City of Blaine, Minnesota (the Authority) has established Tax Increment Financing District No. 1-5 (the TIF District) within the Blaine Economic Development Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, as amended; and
WHEREAS, CSM Investors II, Inc. (CSM) has requested that the Authority assist the Developer with the financing of a proposed expansion of warehouse facilities leased to Aveda Corporation (the Project) pursuant to a Development Agreement by and between the Authority and the CSM (or an affiliate) (the Agreement); and
WHEREAS, on the date hereof, the Authority conducted a public hearing and approved the Agreement; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Blaine, Minnesota as follows:
1. In accordance with Minnesota Statutes, Sections 116J.993 through 116J.995 (the Business Subsidy Law), the Agreement is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction.
2. The Authority staff is authorized and directed to implement the terms of the Agreement as provided therein.
Passed by the City Council of the City of Blaine this 16th day of May 2013.