City Council Meeting Date: September 4, 2018
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Development Director
Mikaela Huot, Vice President, Springsted Incorporated
Title
Consideration of Resolution approving Tax Increment Financing Business Subsidy and Development Agreement to Strobel & Werner Real Estate Holding Company, LLC.
Body
Action Requested:
Staff recommends approval of the attached Resolution for Business Subsidy and Tax Increment Financing and related Development Agreement to Strobel & Werner Real Estate Holding Company, LLC.
Summary Report:
Strobel and Werner Real Estate Holding Company, LLC (dba Aurora Pharmaceutical) is requesting Tax Increment Financing (TIF) incentives from the City of Northfield to assist with a major planned expansion of the current facility. Dr. Michael Strobel and Dr. Mark Werner (owners) have submitted an application for an Economic Development TIF District which can be found attached to this report. The proposed pay-as-you-go TIF District requires the developer to pay all development costs with their own funds. As the net tax capacity of the district increases, the increase in property taxes paid by the developer (tax increment) can be used to reimburse the developer for eligible costs such as land acquisition, site preparation, and public infrastructure.
Community Development staff began working with Dr. Strobel and his development team in March, 2018. Community Development Director Chris Heineman and Economic Development Coordinator Nate Carlson met with the developer regarding the project scope and required land. After examining several potential options, it was determined that no other alternative would accommodate Aurora Pharmaceutical's needs and facilitate the proposed expansion project.
Strobel and Werner Real Estate Holding Company, LLC have proposed a $1.5 million expansion on the current Aurora facility located at 12...
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