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Home My WebLink About4.F.7. Setting a Public Hearing for a Minnesota Investment Fund Loan for Compass Datacenter, LLC-Res. No. 7311 � C�onsent Business 4. Fj. 7. SHA1C01'E� TO: Mayor and City Council Mark McNeill,City Administratar FROM: Samantha DiMaggio,Economic Development Coardinator DATE: OS/21/2013 . SUBJECT: Setting a Public Hearing for a Minnesota Investment Fund Loan for Compass Datacenter,LLC-Res. No.7311 (D) � (AMENDED 5/21/2103) � — Action Sought To,call for a Public Hearing to consider granting the Developer,Compass Datacenters,LLC,a Minnesota Investment Fund loan in the approximate amount of$250,000. � Background � The Minnesota Investment Fund provides financing to help add new workers and retain high-quality jobs on a statewide basis.The focus is on industrial,manufacturing,and technology-related industries to increase flie local and state tax base and improve economic vitality statewide.Funds are awarded to local units of government who provide loans to assist expanding businesses.Cities,counties,townships and recognized Indian tribal governments are eligible for this fund.All projects inust meet minimum criteria for private investment,number of jobs created or retained,and wages paid.There is a maximum o�89$1,000,000 per project.At least 50 percent of total project costs must be privately financed through owner equity and other lending sources(most applications selected for funding have at least 70 percent private financing).Terms are for a maximum of 20 years for real estate and a . maximum of 10 years for machinery and equipment.Interest rates are negotiated. Recommendation In order for a Public Hearing to take place,a resolution will need to be approved by the City Council. It's our � recommendation that the resolution be adopted and that a Public Hearing take place on June 18,2013. Budget Impact . Relationship to Vision ' This supports Goal D, "Maintain,improve,or create strong partnerships with other public or private sector entities." Requested AcHon If the Council concurs,it should,by motion,approve the following resolution; Resolution No. 7311 Calling a Public Hearing on Granting a Business Subsidy in the Form of a Minnesota Investment Fund Loan to Compass Datacenters,LLC,or any of it's affiliates. Attachments: Compass CITY OF SHAKOPEE,MINNESOTA RESOLUTION NO.7311 � RESOLUTION CALLING A PUBLIC HEARING ON A GRANTING BUSINESS SUBSIDY IN THE FORM OF A MINNESOTA INVESTMENT FUND LOAN TO COMPASS DATACENTERS,LLC,OR ANY OF ITS AFFILIATES WHEREAS, Compass Datacenters, LLC, a Delaware limited liability company, or any of its �liates(the"Developer"), has proposed to acquire, construct, and equip an approximately 90,000 square foot data center building (the "Minimum Improvements") on real property (the "Properly") located in the City of Shakopee,Minnesota(the"City");and WHEREAS, in order to make the Minimum Improvements financially feasible, it is proposed that the City provide the Developer with a Minnesota Investment Fund loan for the Minimum Improvements in the amount of up to$250,000(the"MIF Loan");and WHEREAS,the MIF Loan proposed to be provided to the Developer by the City to help finance the Minimum Improvements constitutes a business subsidy under Minnesota Statutes, Sections 116J.993 to 116J.995(the"Business Subsidy Act");and WHEREAS, before the City may provide financial assistance that constitutes a business subsidy . under the Business Subsidy Act,the City must conduct a duly noticed public hearing;and WHEREAS,the City Council of the City has determined to consider granting the MIF Loan and to hold a public hearing thereon in accordance with the Business Subsidy Act;and NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Shakopee,Minnesota. that: ' 1. The Finance Director/City Clerk is authorized and directed to publish a notice for . publication in the official newspaper of the City setting a public hearing before the City Council on Tuesday, June 18,2013, at or after 7:00 p.m. at City Hall on the proposed MIF Loan. The notice, attached as ' EXHIBIT A,shall be published in the newspaper at least 10 days prior to the public hearing,and shall be in substantially the form attached hereto. 2. The Finance Director/City Clerk is authorized and directed to take all other actions necessary to bring the proposed loan before the City Council at the time of the public hearing. 424206v1 JAE SH155-297 Approved by the City Council of the City of Shakopee,Minnesota this 21 st day of May,2013. Mayor ATTEST: ` Finance Director/City Clerk 424206v1 JAE SH155-297 2 NOTICE OF PUBLIC HEARING CTTY OF SFIAKOPEE,MINNESOTA , � Notice is hereby given that the City Council ofthe City of Shakopee,Minnesota(the"City")will meet at or after 7:00 p.m.on Tuesday,June 18,2013,at the City Council Chambers of City Hall, located - at 129 South Holmes Street South in the City, to conduct a public hearing regarding granting Compass Datacenters, LLC, a Delaware limited liability company, or any, of its affiliates (the "Developer"), a Minnesota Investment Fund loan under Minnesota Statutes, Section 116J.8731, for the acquisition, construction, and equipping an approximately 90,000 square foot data center building on real properly located in the City. � At the hearing, the City Council will consider granting the Developer a Minnesota Investment ` Fund loan in the approximate amount of$250,000. The proposed loan constitutes a"business subsidy"under Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Act"). Information concerning the proposed project, including a summary of the terms of the business subsidy agreement,will be on file at City Hall on and after the date of this notice. - Any person with a residence in the City or who is the owner of taxable properiy in the City may file a written complaint with the City if the City fails to comply with the Business Subsidy Act. No action may be filed against the City for the failure to comply unless a written complaint is filed. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. Dated: ,2013 • BY ORDER OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA . /s/Mark McNeill , City Administrator • City of Shakopee,Minnesota A-1 424206v1 JAE SH155-297