HomeMy WebLinkAbout6.A. Consideration of Minnesota Investment Fund Application for Compass Datacenter, LLC.-Res. No. 7339 �„�i� Public Hearings 6. A.
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 08/07/2013
SUBJECT: Consideration of Minnesota Investment Fund Application for Compass Datacenter,
LLC. - Res. No. 7339 (D)
Action Sought
To hold a Public Hearing, and adopt Resolution No. 7339, authorizing staff to apply for a grant
from the Minnesota Investment Fund, and to enter into an agreement with the Minnesota
Department of Employment and Economic Development, and Compass Datacenter, LLC.
Background
The Department of Employment and Economic Development has tentatively committed to a
Minnesota Investment Fund(MIF) Fargivable loan of up to $90,000 for Compass Datacenter,
LLC.
The MIF program 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 the 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. If
awarded, DEED will provide a grant to the City of Shakopee. The City will use these funds to
issue a forgivable loan to Compass Datacenter, LLC.
All projects must meet minimum criteria for private investment, number of jobs created or
retained, and wages paid. Compass will be required to create 18 new full time equivalent
positions within the first two (2) years of operation. A minimum wage of$14.50 will be required.
At least 50 percent of total project costs must be privately financed through owner equity and
other lending sources. Compass will be required to make a minimum capital investment.
If Compass Datacenter, LLC. does not meet the job, wage and investment goals, they will be
asked to repay the funds.
Recommendation
Staff recommends that if the City Council so chooses, they should pass Resolution No. 7339
Authorizing the slibmittal of the Minnesota Investment Fund application.
The Council should also enter into a Grant Agreement with DEED which allows the issuance of a
forgivable loan to Compass Datacenter, LLC.
Budget Impact
As these are state funds, there is no direct financial impact on the City as a result of the MIF loan.
Relationship to Vision
This supports Goal D, "Maintain, improve, or create strong partnerships with other public or
private sector entities."
Requested Action
Following the Public Hearing, if the City Council concurs, it should, by motion, approve the
following Resolution:
Resolution No. 7339, A Resolution authorizing and approving a Minnesota Investment Fund
Application,
Grant Agreement, and Forgivable Loan in connection with Compass Datacenter, LLC.
Attachments: Resolution No. 7339
THE CITY OF SHAKOPEE
RESOLUTION NO. 7339
RESOLUTION REGARDING THE AUTHORIZATION AND APPROVAL FOR A
MINNESOTA INVESTMENT FUND APPLICATION, GRANT AGREEMENT AND
FORGIVEABLE LOAN IN CONNECTION WITH COMPASS DATACENTERS, LLC.
DEVELOPMENT
WHEREAS, the City of Shakopee, Minnesota (the "City"), desires to assist Compass
Datacenters, LLC, a Delaware corporation, to locate a business venture in Shakopee, Minnesota,
located within the Dean Lakes subdivision(the "Project"); and
WHEREAS, in addition to offering and facilitating certain economic development
incentives to Compass Datacenters, LLC, the City will act as the legal sponsor for the project
contained in the Business and Community Development Application to be submitted on August
8, 2013; and
WHEREAS, the Mayor and City Administrator of the City are hereby authorized to
apply to the Department of Employment and Economic Development for funding of this Project
on behalf of the City; and
WHEREAS, the City has the legal authority to apply for financial assistance, and has the
institutional, managerial, and financial capability to ensure adequate construction, operation,
maintenance and replacement of the proposed project for its design life; and
WHEREAS, the City has not incurred any costs, nor has it entered into any written
agreements to purchase property on behalf of the project; and
WHEREAS, the City has not violated any Federal, State, or local laws pertaining to fraud,
bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice relating to
this project; and
WHEREAS, the City Council of the City of Shakopee has called for a public hearing to
consider application for a Minnesota Investment Fund application, and grant agreement, and
forgivable loan, all in connection with the Compass Datacenters LLC development; and
WHEREAS, upon approval of its application by the State of Minnesota, the City may
enter into an agreement with the State Department of Employment and Economic Development
for the above-referenced project; and
WHEREAS, the City certifies that it will comply with all applicable laws and regulations
as stated in all contract agreements and described on the Compliance Section(S-7) of the State's
Business and Community Development Application; and
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WHEREAS, the City of Shakopee and Kennedy and Graven, Chartered, the City's legal
counsel, has obtained credit reports and credit information regarding Compass Datacenters, LLC,
and upon review, has found no adverse findings or concerns regarding, but not limited to, tax
liens,judgments, court actions, and filings with state, federal and other regulatory agencies, the
failure of Compass Datacenters, LLC, to disclose any adverse information could result in
revocation or other legal action; and
WHEREAS, the City Council of the City of Shakopee held a duly noticed public hearing
on August 7, 2013, related to the submission of a grant application to the Department of
Employment and Economic Development and the business subsidy of approximately $90,000 to
be granted to Compass Datacenters, LLC if the City receives the grant, and that all interested
parties were given the opporhinity to be heard.
NOW, THEREFORE, BE IT FURTHER RESOLVED that, as a result of this action, the
Mayor and City Administrator of the City are hereby authorized to execute such agreements and
amendments thereto, as are necessary to implement the project on behalf of the applicant.
Sworn and Executed Under My Hand this 7`"day of August, 2013
Mayor
City Administrator
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