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Home My WebLink About1. Approval of Minutes: April 02, 09 and 16, 2013 1. St-1AKOPEE TO: Economic Development Authority FROM: Julie Linnihan, Finance Director /City Clerk DATE: 05/21/2013 SUBJECT: Approval of the Minutes. Action Sought Move to approve the minutes from April 2, 2013, April 9, 2013 and April 16, 2013. Attachments: 04 -02 -13 Minutes 04 -09 -13 Minutes 04 -16 -13 Minutes OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Regular Session April 2, 2013 Members Present: President Jay Whiting, Commissioners Steve Clay, Pamela Schurman, Matt Lehman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works /Engineer; Julie A. Linnihan, Finance Director /City Clerk; and Jim Thomson, City Attorney 1. Roll Call President Whiting called the meeting to order and roll was noted as above. 2. Approval of the Agenda Lehman /Clay moved to approve the agenda. Motion carried 5 -0. 3. Joint Public Hearing — Rosemount Inc. Contract for Private Development (including a Business Subsidy Agreement). Lehman/Clay moved to re -open the public hearing. Motion carried 5 -0 Mr. McNeill said the City Council approved tax abatement for Rosemount, Inc. on February 12, 2013. Since the February meeting, City staff has negotiated with Rosemount regarding other incentives, all of which are intended to meet Rosemount's request for $6 million in economic development assistance. The development agreement and business subsidy plan contain the following: Property Tax Abatement (9 years) $ 590,496 SAC Credits (up to 125 at $2435 /unit) $ 304,375 Waive SAC Access Fee (City SAC) $ 39,900 Waive City Trunk Sanitary Sewer Charge $ 102,362 Forgivable Loan EAC Fund Balance $ 103,000 Loan Proceeds $ 247,000 Total $1,387,133 Mr. McNeill explained what Rosemount's obligations would be if it received the tax City's incentives. Rosemount has agreed to build phase 1 and phase 2 of the minimum improvements; Rosemount would then create a minimum of 400 jobs at a minimum wage value of $14.50 per hour exclusive of benefits. The Development Agreement also lists insurance requirements, and outlines "claw- back" provisions which specifies prorated repayments to the City and other agencies in the event that Rosemount does not create the required number jobs according to the proscribed time frame.. Official Proceedings of the April 2, 2013 Economic Development Authority Page 2 Mr. McNeill also explained the incentives offered by Scott County, School District 191, and potential State sales tax exemption and State grants. Brian Harstad, CFO of Rosemount, Inc. stated that 60% of the employees based out of the Shakopee site would be engineers and administrative staff. The other 40% would be manufacturing employees. Member Clay said he would like to see the Developer's Agreement changed to require that within 3 -4 years, 60% of the jobs created by Rosemount in their proposed development would pay at least $30 per hour, exclusive of benefits, and 40% would be paid at least $18 per hour, again excluding benefits. President Whiting asked if there was anyone in the audience that wished to speak at the public hearing. No one responded. Clay /Schurman moved to close the public hearing. Motion carried 5 -0. Schurman/Tabke offered Resolution No. 2013 -2, A Resolution Approving Contract for Private Development (Including a Business Subsidy Agreement) with the City of Shakopee, Minnesota, Scott County, Minnesota, Independent School District No. 191 (Burnsville- Eagan- Savage), and Rosemount Inc. with an amendment to include that within 3 -4 years, 60% of the jobs created by Rosemount in their proposed Shakopee development would pay at least $30 per hour, exclusive of benefits, and 40% would be paid at least $18 per hour excluding benefits. Motion carried 4 -1 with Cncl. Lehman opposing. 4. Adjourn Clay /Lehman moved to adjourn to Tuesday, April 9, 2013 at 7:00 p.m. Motion carried 5- 0. Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Special Session April 9, 2013 Members Present: President Jay Whiting, Commissioners Steve Clay, Pamela Schurman, Matt Lehman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; and R. Michael Leek, Community Development Director 1. Roll Call President Whiting called the meeting to order and roll was noted as above. 2. Approval of the Agenda Clay / Schurman moved to approve the agenda. Motion carried 5 -0. 3. Approve and Amend to the Contract for Private Development with Rosemount, Inc. Mr. McNeill said that as part of the Council/EDA action on April 2nd, the Council and EDA amended the Development Agreement to require that, within 3 -4 years, 60% of the jobs created by Rosemount in their proposed development of the ADC II site would pay at least $30 per hour, exclusive of benefits, and 40% would be paid at least $18 per hour, again excluding benefits. After Rosemount was able to fully consider the impacts of those amendment provisions following the meeting, staff received word the following day that those numbers would not work for Rosemount. They indicate that they are agreeable to paying the stated ratio of jobs at an average of $30/hour, and $17/hour (not $18) after 4 years. However, to specify the amounts discussed at the Council/EDA meetings to be minimums, and also have those rates be exclusive of benefits is financially unworkable. They are agreeable to an amendment stating that the $30 and $17 shall be average wages (at a split of 60% and 40 %, respectively), exclusive of benefits, and be applicable beginning with the 4th year. Clay /Schurman moved to amend and offered Resolution No. 2013 -3, Resolution Approving Revised Contract for Private Development (Including a Business Subsidy Agreement) with the City of Shakopee, Minnesota, Scott County, Minnesota, Independent School District No. 191 (Burnsville- Eagan- Savage), and Rosemount Inc. Motion carried 4 -1 with Cncl. Lehman opposing. 4. Adjourn Clay/Lehman moved to adjourn to Tuesday, April 16, 2013 at 7:00 p.m. Motion carried 5 -0. Official Proceedings of the April 2, 2013 Economic Development Authority Page 2 Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Regular Session April 16, 2013 Members Present: President Jay Whiting, Commissioners Steve Clay, Pamela Schurman, Matt Lehman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Engineer /Public Works Director; Julie A. Linnihan, Finance Director /City Clerk; Jim Thomson, City Attorney. 1. Roll Call President Whiting called the meeting to order and roll was noted as above. 2. Approval of the Agenda Schurman/Clay moved to approve the agenda. Motion carried 5 -0. 3. EDA Minutes from March 19, 2013 Lehman/Tabke moved to approve the minutes from March 19, 2013. Motion carried 5 -0. 4. Bills in the Amount of $3,437.13 Lehman/Tabke moved to approve the bills in the amount of $3,437.13. Motion carried 5- 0. 5. Adjourn Schurman/Clay moved to adjourn to Tuesday, May 21, 2013 at 7:00 p.m. Motion carried 5 -0. Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary