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City of Marshall Development Proposal to Action Manufacturing, Inc.

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: 1560 Madrid Circle 99 year ground lease for $1/year 5 Acres: Market Value of $125,000

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City of Marshall Development Proposal to Action Manufacturing, Inc.

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  1. City of Marshall Development Proposalto Action Manufacturing, Inc. February11, 2014

  2. City Provided Ground Lease/Infrastructure (Previously Approved Pending FAA Review) • Airpark East Development Area: • 1560 Madrid Circle • 99 year ground lease for $1/year • 5 Acres: Market Value of $125,000 • All public utilities completed (water, sanitary sewer, stormwater, electric, streetlighting). • Special Assessments • Waive $325,000

  3. Airpark East Development Area (Previously Approved Pending FAA Review)

  4. 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.

  5. City Provided Land • Conveyance of 3.94 (south) or 7.08 (north) acres of land. • 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. • 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.

  6. Diagram 1A

  7. Diagram 2A

  8. Minnesota Investment Fund Loan • $240,000 Loan: • 2% Interest for 7 years • Job Retention of 13 FTE’s • Job Creation of 10 FTE’s • $13.00/hour with $2.00/hour benefits

  9. Development Plan • Action Manufacturing Construction Details • Approximately 20,000+ square foot warehouse • 18K SF: manufacturing, welding, fabrication, assembly • 2K SF: office space/restrooms

  10. Site Plan – Airpark (to be amended)

  11. Recap of Obligations • City of Marshall Obligations • Provide land($98,500-$177,000) • Waive special assessments ($256,100-$460,200) • Waive WAC charges $1,273/acres ($5,016-$9,013) • MIF Loan ($240,000 for 7 years at 2%) • Action Manufacturing Obligations • 20,000+ square foot warehouse • Job Retention of 13 FTE’s • Job Creation of 10 FTE’s • $13.00/hour with $2.00/hour benefits

  12. 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).

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