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/year o 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, ▫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, 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 years o Job Retention of 13 FTE’s o Job Creation of 10 FTE’s o $13.00/hour with $2.00/hour benefits

Development Plan Action Manufacturing Construction Details o Approximately 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 Obligations o Provide land($98,500-$177,000) o Waive special assessments ($256,100-$460,200) o Waive WAC charges $1,273/acres ($5,016-$9,013) o MIF Loan ($240,000 for 7 years at 2%) Action Manufacturing Obligations o 20,000+ square foot warehouse o Job Retention of 13 FTE’s o 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).