Transcript City of Marshall Proposal to Ralco Nutrition
City of Marshall Development Proposal to Action Manufacturing, Inc.
February 11, 2014
City Provided Ground Lease/ Infrastructure (Previously Approved Pending FAA Review) • • • • Airpark East Development Area: o 1560 Madrid Circle 99 year ground lease for $1/year o 5 Acres: Market Value of $125,000 All public utilities completed (water, sanitary sewer, stormwater, electric, streetlighting).
Special Assessments o Waive $325,000
Airpark East Development Area (Previously Approved Pending FAA Review)
Alternative Site Option
• • • • FAA Determination February 6, 2014.
▫ No access off proposed area due to anticipated taxiway/apron expansion for future ALP.
▫ Other areas potential but will require ALP updates not within Action Manufacturing Timetable.
Alternative Option Plan for Property In Sonstegard.
▫ 2 shovel ready site options under review (finalizing with Ralco & Action Manufacturing.
▫ Will be transfer of property with similar terms at no-cost and no special assessments.
Other Development Conditions and Business Subsidy Terms & Conditions will be same as November 2013 approvals.
Hangar is still an option as a future phase just as it was under previous proposal.
City Provided Land
• Conveyance of 3.94 (south) or 7.08 (north) acres of land.
o o Sonstegard Subdivision II: Block 1, Lot 3 (Lot Split) 100% Grant to Action Manufacturing, Inc. for a land value of $98,500-$177,000 to begin construction by June 30, 2014.
No special assessments to be levied.
o • Market value $25,000 per acre ($98,500-$177,000). • See Diagram 1A & Diagram 2A.
• 100% Grant to Action Manufacturing, Inc. with provision for full value purchase or claw-back if com.
Diagram 1A
Diagram 2A
Minnesota Investment Fund Loan
• $240,000 Loan: o o o 2% Interest for 7 years Job Retention of 13 FTE’s Job Creation of 10 FTE’s o $13.00/hour with $2.00/hour benefits
Development Plan
• Action Manufacturing Construction Details o Approximately 20,000+ square foot warehouse 18K SF: manufacturing, welding, fabrication, assembly 2K SF: office space/restrooms
Site Plan – Airpark (to be amended)
Recap of Obligations
• • City of Marshall Obligations o o o Provide land($98,500-$177,000) Waive special assessments ($256,100-$460,200) Waive WAC charges $1,273/acres ($5,016-$9,013) o MIF Loan ($240,000 for 7 years at 2%) Action Manufacturing Obligations o o o 20,000+ square foot warehouse Job Retention of 13 FTE’s Job Creation of 10 FTE’s o $13.00/hour with $2.00/hour benefits
Recommendation
• • Approve Resolution Calling for Hearing for February 25 at 5:30 p.m.
Public Hearing February 25 - Approve Contract for Private Development Including Land Purchase and Business Subsidy Agreement for Action Manufacturing, Inc. (Council and HRA Actions).