HomeMy WebLinkAbout6.m. Associated Wood Products Development AgreementCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL REGULAR MEETING: Nov. 21, 2000
AGENDA ITEM: Associated Wood Products Development
Agreement
AGENDA SECTION:
Consent Agenda
PREPARED BY: Jim Parsons
Community Development Director
AGENDA N
I T .0., b
ATTACHMENTS: None.
APPROVED BY:
mm
Background
Zeman Holding, Inc., has signed a development agreement for a building for Associated
Wood Products in the Rosemount Business Park. Zeman will build the 74,000- square-
foot building and turn it over to Associated Wood Products upon completion. The
minimum market value of the property will be about $3 million. The deal is complicated
by the desire on the part of the owners of Associated Wood Products to effect a like -kind
exchange for tax reasons. Attorney Ron Batty of Kennedy & Graven has reviewed the
development agreement and believes it to be sound.
The project will bring a precision wood products manufacturer with an international
clientele to Rosemount. The development agreement commits Associated W, ood
Products to create at least 20 new jobs averaging at least $12 per hour excluding benefits,
in addition to the existing jobs at the Bloomington plant.
This is a solid and long- awaited project for the Rosemount Business Park.
RECOMMENDED ACTION:
The Port Authority recommends that the development agreement for the Associated Wood
Products project be approved.
PORT AUTHORITY ACTION: