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Date
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January 25,
2010
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Agenda
Item No. 42 Roll
Call No. 10-
Communication No.
10-037 Submitted by: Matthew Anderson, Economic
Development Administrator |
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AGENDA
HEADING
An ordinance giving prior approval for partial
exemption from property taxation for 1701 East Euclid in accordance with
Chapter 427 B of the Iowa Code and City Ordinance No. 11,038.
SYNOPSIS:
On December 21, 2009, the City Council held a public
hearing to consider the proposal of a partial exemption from property taxation
on the value added by the reconstruction and retrofitting of an industrial
building located at 1701 East Euclid, and directed preparation of an ordinance
as required by City Code. The building at 1701 East Euclid will be utilized by
CFI Sales, Inc (dba CFI Tire Service, Tim Berardi, President, 2601 Dixon, Des
Moines, Iowa 50316).
FISCAL
IMPACT:
Amount:
$5,000 forgivable loan as 25% match to direct IDED assistance;
industrial tax exemption on new value added to 1701 East Euclid.
Funding
Sources: Economic Development Enterprise Account SP743,
CMO980717 #528190; Iowa Code 427 B industrial tax exemption
ADDITIONAL
INFORMATION:
The Office of Economic Development has worked with
CFI Sales, Inc. to submit an application
for business financial assistance to the Iowa Department of Economic
Development for redevelopment of 1701 East Euclid. The application is time
sensitive, and it is requested that Council consider waiving the second and
third readings of this ordinance to allow the submittal of the application to
be expedited.
CFI Sales, Inc. was originally part of Holt Tire
Service, Inc., an East Des Moines business that began in 1927. CFI Sales, Inc
was incorporated in 1995 to serve the commercial, agricultural and industrial
segments of the retail tire market. The business has evolved into serving the
wholesale side of these markets, and is expanding their out of state sales for
agricultural tires, wheel lines and rubber tracks. Retreading and repairing
rubber tracks, as well as wheel remanufacturing, are components of the
operation that anticipate strong growth. Annual sales for the company total $16.8
million, and are projected to grow to $28 million over the next three years.
The company currently has 30 employees and plans to create an additional 16
positions by 2012.
The
ability to renovate the office/warehouse building at 1701 East Euclid will allow
CFI Sales, Inc. to consolidate their operations, which are currently housed in
three separate locations, and also provide room for future growth. The
anticipated cost of the project to purchase and renovate the building is
approximately $5,050,000. Iowa Department of Economic Development staff toured
the building and site with Office of Economic Development staff on Friday,
December 4, 2009 and found that the condition of the building warranted a finding
of economic obsolescence, as the building will require extensive renovation to
be usable for the operations of CFI Sales, Inc.
PREVIOUS
COUNCIL ACTION (S):
Date: December 21, 2009
Roll Call Number: 09-2315
Action: On
partial exemption from property taxation for CFI Sales, Inc., 1701 E. Euclid
Avenue. (Council Communication No.
09-885) Moved by Mahaffey to adopt. Motion Carried 6-0. Council Member Hensley
declares a conflict of interest and abstains from voting.
Date: December 7, 2009
Roll
Call Number:
09-2196
Action: Approving Submission of an application for financial
assistance to the State of Iowa Department of Economic Development and
approving preliminary terms of an economic development loan of $5,000 to CFI
Sales, Inc. Moved by Vlassis to
adopt. Motion Carried 7-0.
Date: December 7, 2009
Roll
Call Number:
09-2197
Action: Approving Setting date of hearing on partial
exemption from property taxation for CFI Sales, Inc., 1701 E. Euclid Avenue,
(12-21-09). (Council
Communication No. 09-866) Moved by Vlassis to adopt. Motion Carried 7-0.
Date: June 22, 2009
Roll
Call Number: 09-1140
Action: Approving Preliminary terms of agreement with Cold
Stream, LLC for development of 50-acre light industrial business park at NE 46th
Street and Hubbell Avenue. (Council
Communication No. 09-426) Moved by Mahaffey to receive,
file and approve preliminary terms of agreement set forth in the accompanying
Council Communication and to direct the City Manager to proceed with
negotiations of formal agreements with Cold Stream, LLC consistent with the
terms set forth in the Council Communication.
Motion Carried 7-0.
Date: May 18, 2009
Roll Call Number: 09-861
Action: Approving Preliminary terms of understanding with Cold
Stream, LLC for development of a 50-acre parcel at NE 46th Street
and Hubbell Avenue as a light industrial business park. (Council Communication No.
09-326)
Moved by Kiernan to receive, file and approve preliminary terms of
understanding set forth in the accompanying Council Communication and to direct
the City Manager to proceed with actions consistent with the terms set forth in
the accompanying Council Communication.
Motion Carried 6-1. Absent: Cownie.
BOARD/COMMISSION
ACTION (S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
The business financial assistance application for
CFI Sales, Inc. will be forwarded to the Iowa Department of Economic
Development Board for review.
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public
at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council
meeting. Citizens can also request to receive meeting notices and agendas by
email by calling the Clerk’s Office or sending their request via email to
cityclerk@dmgov.org.