HomeMy WebLinkAbout9A PLate Business Subsidy Agreement PresentationPrior Lake City Council
December 11, 2017
Project Description
PLate on Main, LLC has
purchased the property
at 16323 Main Ave. SE
Demolish Single-Family
Home
Complete soil
correction, utility and
site work
Construct a new 3,500
SF restaurant with
outdoor patio
Restaurant to operate as
PLate
16323 Main Avenue
Business Subsidy Policy
In accordance with MN Business Subsidy Law, PL adopted a
Business Subsidy Policy in 2004, updated in 2013.
City also adopted a Local Business Incentives Policy in 2013.
Established guidelines and criteria regarding the use of local
business incentives that are not subject to the
requirements and limitations set forth by provision of MN
Business Subsidy Law.
Requires business incentive recipients between $5,001 and
$149,999 to enter into an agreement with the City.
Funding Source
Staff and the EDA identified funding sources and areas where the
City can assist with the redevelopment costs.
Two funding sources have been identified; Tax Increment Fund 402
and EDA Reserve Fund.
Tax Increment Fund 402 (TIF 1-1)
District was modified by the City Council in August 2012.
24 parcels were identified where the city could utilize tax increment
funds from TIF 1-1 to assist with downtown redevelopment.
The subject property (16323 Main Ave.) was included among the 24
parcels.
Eligible uses of TIF 1-1 Funds include, property acquisition; building
demolition; site cleanup; and/or public infrastructure.
Request
Project Amount Funding Source
Demolition $27,206 TIF 1-1
Soil Corrections $25,833 TIF 1-1
Storefront Façade $25,000 TIF 1-1 & EDA Reserves
Sidewalk & Curb Concrete $20,761 EDA Reserves
Street Lighting $18,000 EDA Reserves
TOTAL $116,800
Public Purpose Objectives
The proposed development would achieve several Public Purpose
Objectives identified in the Local Business Subsidy Policy,
including:
To enhance and diversify the City’s tax base;
To provide employment opportunities in the City;
To help provide access to services for residents of the City;
To achieve development on a site that may not be developed
without business subsidies assistance;
To remove blight and/or encourage development of a
commercial area in the City that results in higher quality
development and private investment; and
To offset increased costs of development of a specific property
when the unique physical characteristics of the site may
otherwise preclude private investment.
Business Subsidy Agreement
Use of Business Subsidy. Used to reimburse site development costs associated
with demolition; soil corrections, storefront façade improvements; sidewalk and
curb work; street lighting; and utility connections.
Approved Costs. City shall reimburse PLate on Main for eligible project costs in
an amount not to exceed $116,800. There is flexibility in the agreement to allow
use of a greater or smaller percentage of the funds on individual project items.
Project Goals.
Completion of the project to the city’s reasonable satisfaction within one
year of the benefit date.
Operation of a restaurant for two years from benefit date.
Wage and Job Goals of the Project. The creation of jobs is expected but not a
goal of this Business Subsidy, therefore the wage and job goals have been set to
zero.
Forgiveness. If PLate meets project goals, the Business Subsidy will be forgiven
in full at the end of the two-year period.
The Morris Leatherman Company
Prior Lake 400 resident Community Survey
Recommendation
City staff and the EDA recommend:
Resolution approving the allocation of EDA reserve funds,
authorizing the use of Tax Increment Fund 402 (TIF 1-1) and
authorizing the Mayor and City Manager to enter into a
Business Subsidy Agreement with PLate on Main, LLC.
Questions?