Businesses receive TIF financing
Published 12:00 am Thursday, October 28, 1999
Two Albert Lea industries received financial assistance from the City Council for building expansions this week.
Thursday, October 28, 1999
Two Albert Lea industries received financial assistance from the City Council for building expansions this week.
In approving development agreements with Interstate Packaging and with Kleentec Inc., the city will provide a maximum of $100,000 in tax increment financing to Interstate Packaging for a new facility; it also transferred land to Kleentec for an addition.
The land transfer is valued at $21,000 and will create six new positions at Kleentec when the business opens its 15,000 square foot addition.
&uot;The money will be repaid to city from tax increments from the district,&uot; said City Manager Paul Sparks.
While past TIF districts have provided funding to cover up-front costs, assistance to Interstate Packaging is what Sparks called pay-as-you-go.
&uot;We won’t actually advance funds,&uot; he said. &uot;They (Interstate) will put up the money and be repaid out of their taxes.&uot;
The size of the Interstate building and the number of local jobs it will provide weren’t discussed at Monday’s meeting.
In other action: the council:
* Approved a conditional use permit for the construction of three two-unit twin homes near Giles Street. The councilors also approved the final plat for the development, Giles Place Twin Homes.
* Appointed Anna Larson to the Human Rights Commission.
* Approved the development agreement for the management of Pickeral Park Townhomes. Construction of the 24-unit low- to moderate-income housing development was started last week.
* Purchased property in the Northaire Industrial Park for $30,251 from Greater Jobs, Inc. The city will continue to own about 30 percent of the property, but will transfer the remainder to Kleentec for its building expansion.
* Advanced $30,251 from the general fund to a TIF district to fund the land purchase.