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:o 1560 Madrid Circle

• 99 year ground lease for $1/yearo 5 Acres: Market Value of $125,000

• All public utilities completed (water, sanitary sewer, stormwater, electric, streetlighting).

• Special Assessments o Waive $325,000

Airpark East Development Area (Previously Approved Pending FAA Review)

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.

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

land.o Sonstegard Subdivision II: Block 1, Lot 3 (Lot Split)o 100% Grant to Action Manufacturing, Inc. for a land value

of $98,500-$177,000 to begin construction by June 30, 2014.

o 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.

Diagram 1A

Diagram 2A

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

Development Plan• Action Manufacturing Construction DetailsoApproximately 20,000+ square foot

warehouse 18K SF: manufacturing, welding, fabrication,

assembly 2K SF: office space/restrooms

Site Plan – Airpark (to be amended)

Recap of Obligations• City of Marshall ObligationsoProvide land($98,500-$177,000)oWaive special assessments ($256,100-$460,200)oWaive WAC charges $1,273/acres ($5,016-

$9,013)oMIF Loan ($240,000 for 7 years at 2%)

• Action Manufacturing Obligationso 20,000+ square foot warehouseo Job Retention of 13 FTE’so Job Creation of 10 FTE’s o $13.00/hour with $2.00/hour benefits

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).