HomeMy WebLinkAbout09.15.82 Special Council Minutes
95
MINUTES
JOINT MEETING OF COUNCIL AND HRA
SPECIAL
SEPTEMBER 15, 1982
1. The Mayor called the meeting to order at 7:00 P.M.
Present: Mayor Stegmaier, Councilmembers Cook, Kelly, Kuchera, Orr
Absent: None
Also Present: Administrator Ford, Attorney Darflinger, Attorney Gorgos,
City Engineer Glenn Cook, and Clerk-Typist Sandy Zellmer
2. This was a special meeting of the Council and the HRA held jointly
to receive a presentation by staff regarding its efforts to bring new
industrial development to Farmington. The Administrator introduced Mr:
Don Staley of Integra-Built, Inc., a builder who represented both of the
industries involved. It was'.explained that the site under consideration
was a 24 acre parcel of land in the SE quadrant of Denmark & Ash Street,
presently zoned industrial, owned by Mr. Bob Adelmann, next door to the
Dakota Electric Association headquarters. The endeavor would involve the
acquisition of 6 acres for each industry plus acquisition of the remaining
12 without any immediate use. The first 12 acres would be included into
the tax increment district by amending the development plan and the cost
of acquisition and improvements would be paid for from monies received
through the sale of tax increment bonds. The improvements would be installed
under a 429 Assessable Project with the assessment against the property to
be paid cash by the HRA out of the proceeds of the tax increment bond
sale. It was pointed out to both groups that preliminary figures indicated
the total bond sale would be approximately $500,000 which would generate
a tax increment of annual taxes of approximately $100,000 for a 5 to 1 factor.
3. Mr. Staley explained that both industries were well along in their plans
to build buildings in other areas for which this site had already been
selected and the financing arranged. He explained that both industries
were very interested in the package being offered, but that it was spec-
ulative whether or not they could reverse gears at this stage. He presented
the following information on the two industries involved:
A. Industry #1: Central Telephone - currently located in
Farmington, Lakeville, and Fairmont. A telephone
utility would plan to build a combined office/
warehouse consisting of approximately 28,000
square feet constructed of brick, at a market
value of $1,400,000. Central Telephone presently
employs approximately 70 persons.
B. Industry #2: Robbins Associates, Inc. - currently located in
the City of Burnsville and is a manufacturer and
distributor of generic pharmaceuticals. They would
plan to erect a combined office/warehouse of
approximately 28,000 square feet constructed of
brick, with an estimated market value of $890,000.
They presently employ approximately 40 people
with plans to double that number in two years.
96
Joint meeting of Council and HRA - September 15, 1982, continued
4. Both groups were informed that the package being offered by the City
would include tax increment bonds sold by the HRA, a 429 Assessable Project
for improvements bonded by the City and the sale of municipal industrial
bonds in which the City would participate with the builder. Both groups
were then asked as to whether or not staff should proceed in the direction
in which it n~ was heading, pointing out that everything at this point
based on preliminary figures and data, looked feasible and promising. The
response from both groups was an enthus i ast i c and unan imous 'Igreen Ii ght".
5. Motion made and seconded to adjourn at 8:00 P.M.
Respectfully submitted,
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Wi II iam J. For7
City Administrator
APPROVED :
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