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REQUEST FOR CITY COUNCIL DISCUSSION/DIRECTION DATE: 5/15/00 ITEM NO: Department Approval: Manager Approval: Agenda Section: ~/c.;5. Item Description: Request for tax increment assistance - 2655 Fairview Ave. (PF3216) 1.0 Background: 1.1 The City has received a request for pay-as-you-go tax increment assistance for the redevelopment of the Southern portion of2655 Fairview Avenue. The site, formally occupied by Thermo King includes a vacant dilapidated building in need of demolition. Ryan Construction has brought a request forward, for their client Wheeler Hardware. 1.2 Wheeler Hardware is a 50-year-old local wholesale door and hardware distributor to the commercial industry. Wheeler currently is located in Shoreview with 13,000 SF of manufacturing space and St. Paul with 4,400 SF of office and warehouse space. The new site will consolidate their operation under one roof and allow for significant growth of the company. 1.3 Wheeler currently employs 26 people and will hire at least 5 new employees within the first year. Wheeler was unable to find a suitable site in St. Paul that would meet their needs for expansion and felt that Shoreview was too far from their existing customer and employee base. 1.4 The proposed site in Roseville consists of approximately 3.57 acres. The site is "L" shaped and includes an abandoned industrial building owned by Pacific Mutual Door. The larger Pacific Mutual Door building is currently being sold separately. The entire site is in the existing tax increment redevelopment district # 16, which expires in 2018. 1.5 The proposed redevelopment would result in the demolition of the existing building and the new construction of a 35,000 SF manufacturing, office and warehouse facility on the back side of the site. The redevelopment will require the addition of a storm water pond due to the added impervious surface. 1.6 At this time it is anticipated that the proposal will meet the existing land use criteria for an I-I zone and that no variance or conditional use permits will be required. Building plans have not been submitted at this time. 1. 7 Based upon preliminary information provided by RJ Ryan Construction, staff prepared a preliminary tax increment spreadsheet. The current tax capacity for the existing site is approximately $10,052 annually. With an estimated new value of $1 million, new annual increment amounts to approximately $15,600 annually. After fiscal disparities and a 25% administrative fee it is estimated that there could be a total of $70,000 in tax RCD(PF3216) - Redevelop C2/Partridge - Page 1 of2