St. Michael approves business expansion assistance

TIF/subsidy agreement for Marksman Metals

The St. Michael City Council approved a tax increment financing (TIF) and business subsidy agreement for the Marksman Metals expansion.

The council also heard an update regarding Riverside Church’s request to relocated into the theater building at Hwy. 241 and Interstate 94.



The council opened a public hearing to consider modifying the city’s TIF Development Dist. 3 and establishing TIF Dist. 3-4.

Financial consultant Rebecca Kurtz was present and said the new district is being established to assist Marksman Metals with its proposed expansion. Kurtz added that since the area along Hwy. 241 is adjacent to the existing TIF district, she recommended expanding the district to include Marksman’s expansion and other adjacent areas that could be developed in the future.

Kurtz said there is a five-year rule, where any parcels that have not incurred expenses in the first five years will be removed from the district. She also said the TIF district would be set up as a pay-as-you-go, so the developer will incur the costs up front and will be reimbursed with the TIF money captured by the district.

Resident Randy Kottke asked if there was a spreadsheet showing the TIF amounts. He also asked if the new district would benefit just Marksman or others, too. Kottke questioned if TIF fits the parameters of new economic growth in this case. Community development director Marc Weigle responded that there are spreadsheets showing the details and amounts, and that the current council places a high priority on keeping area business in St. Michael, and that this is thus a viable use of TIF.

Also proposed for approval is the business subsidy agreement, which Weigle said would require Marksman Metals to pay its employees $11 per hour and that within the first two years of opening the new building, the business would hire an additional 10 employees.

The council ended up unanimously approving the new TIF district, an interfund loan, the TIF agreement between the city and Marksman owner Pete Scharber, and the business subsidy agreement.

Councilor Kevin Kasel clarified that this type of development is a viable use of TIF, which he supports for manufacturing and industrial uses, but does not agree with using it for commercial or retail.



In other matters, during discussion regarding the recent planning commission meeting, staff said the commission talked about the request from Riverside Church to relocate inside the former Cinemagic movie theater at Hwy. 241 and I-94.

The site is not zoned for institutional use, meaning the church would need city approval to rezone the property.

Staff was directed to extend the review period an additional 60 days and set up a joint meeting with the council to discuss the issue with the city attorney.

In other planning commission news, the commission discussed several ordinance amendments, including for microbreweries, tobacco-related projects, remote control airplanes and employees for extended home businesses. Staff said the amendments would be included for approval at a future meeting.

In other action, the council:

HEARD from city administrator Steve Bot of the Aug. 19 budget work session. He said one option included in the budget is to remove the 10 percent of gambling proceeds.

HEARD a BMX racing track update. Patrick Crouse said the group is looking to install lighting to help continue growth at the track. The council said it could discuss some options at a future work session to possibly help finance the lighting project.

DISCUSSED collaborating with Albertville to become a Yellow Ribbon City, designated for cities that take an effort to help war veterans. The council said it would attend Albertville’s Sept. 18 kickoff event.