FY 18 Annual Report

TJN ENTERPRISES

The City entered into a Development Agreement with the TJN Enterprises on December 16th, 2013. Pursuant to the Development Agreement, the City will rebate a maximum amount of $990,000 in property taxes over a ten year period beginning December 1, 2016 and continuing through June 1, 2026, or until such earlier date upon which total payments equal to $990,000 have been made. The project covered by the Development Agreement consists of the construction of an approximately 90,000 square feet building and the installation of equipment for use in its scrap metal recycling and processing operations. The Company agrees to invest not less than $3,250,000 into capital improvements for the project, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council. In FY17, the City rebated $80,118.84 in property taxes paid by Spencer NF. As of June 30, 2017, the City has rebated a total of $80,118.84 and has a remaining maximum obligation of $909,881.16 until the Development Agreement has been satisfied.

CLAY COUNTY LODGING

The City entered into a Development Agreement with Clay County Lodging on September 15, 2014. Pursuant to the Development Agreement, the City will rebate a maximum amount of $1,350,000 in property taxes over a ten year period beginning December 1, 2017 and continuing through June 1, 2027, or until such earlier date upon which total payments equal to $1,350,000 have been made. The project covered by the Development Agreement consists of the construction of a hotel facility. The Company agrees to invest not less than $5,000,000 into capital improvements for the project, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council.

SHINE BROTHERS - EAST CHOPPER BUILDING

The City entered into a Development Agreement with Shine Brothers on February 5th, 2007. Pursuant to the Development Agreement, the City will rebate a maximum amount of $300,000 in property taxes over a fifteen year period beginning December 1, 2009 and continue through June 1, 2019, or until such earlier date upon which total payments equal to $360,000 have been made. The project covered by the Development Agreement consisted of the construction of a concrete and steel building to enclose the operations of the existing east MTB wire shredder at their Spencer facilities. In FY17. the City rebated $22,783.90 in property taxes paid by Shine Brothers. As of June 30, 2017, the City has rebated a total of $176,583.70 and has a remaining maximum obligation of $123,416.30 until the Development Agreement has been satisfied.

D & T Office, LLC

The City entered into a Development Agreement with D & T Office, LLC on December 16th, 2013. Pursuant to the Development Agreement, the City will rebate a maximum amount of $160,000 in property taxes over a ten year period beginning December 1, 2016 and continuing through June 1, 2026, or until such earlier date upon which total payments equal to $160,000 have been made. The project covered by the Development Agreement consists of the construction of a new commercial office building with 4,500 square feet of office space for use in operation of the company's plumbing, heating and fire protection business. The Company agrees to invest not less than $500,000 into capital improvements, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council.

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