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J 1"1 t7' -.J MEMORANDUM Date: February 16, 1994 To: Steve Sarkozy From: Dennis Welsch/Rick Jopke Subject Tax Increment Financing Assistance for CSM Corporation on the fonner Ettinger site. (WORK SESSION· FEB. 22, 1994) The following is a summary of the TIF assistance package we have worked out with CSM Corporation. What is the ora ¡ect: The site is a previous truck terminal. It has severe ground and subsoil petro chemical pollution problems. The previous owner (Ettinger) no longer exists as a corporation and has no assets to clean up this site. The Resolution Trust Corporation has taken over the site. The site is near to tax default; if it does default. the property and the environmental liabilities will revert to the County and the city, The developer proposes a public/private project of 210.000 s.f. in buildings with a private investment of over $7.4 million. The project wil1 create 100 jobs in the initial phase. ultimately a total of 300 to 500 jobs could be located in this complex, The first anchor tenant is an electrical parts distribution and light assembly company expanding into Minnesota from the East. Qualification of District: A new TIF District (#14) will have to be created because the site is currently not in a TIF district. The district qualifies as a f<:developl11ent district in that 72% of the area of the site contains improvements. 75% of the structures existing on the site are structuraJly substandard, The structures have been inspected by the City inspection staff and they have indicated that the buildings do not meet current energy or handicap accessibility codes, The cost to renovate the existing structures would equal 15% to 20% of the cost to construct new structures. All accesses. on-site utility systems. and pavement areas are substandard and will also have to be upgraded. A soil pollution sub district may be needed and created at a future time. depending upon the findings of an extensive environmental analysis. 1