HomeMy WebLinkAbout3.A. Approval of Minutes: August 7, 2013 and August 20, 2013 �� Consent Business � /� •
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TO: Economic Developme��t Authority
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 09/03/2013
SUBJECT: EDA Minutes from August 07, 2013 and August 20, 2013
Action Sought
Move to approve the minutes fl�om August 07,2013 and August 20, 2013.
Attachments: 08-07-13 EDA Minutes
08-20-13 EDA Minutes
OFFICIAL PROCEEDINGS OF THE
ECONOMIC llEVELOPMENT
AUTHORITY SHAKOPEE,
MINNESOTA
Regular Session
August 7, 2013 I
Members Present: President Jay Whiting, Commissioners Pamela Schurman, Matt '
Lehman and Brad Tabke. Absent was Commissioner Steve Clay. ';
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; Samantha DiMaggio, Economic
Development Coordinator; Jim Thomson, City Attorney.
1. Roll Call '
President Whiting called the meeting to order and roll was noted as above. '
2. Approval of the A�enda '',
Clay/Lehman moved to approve the agenda. Motion carried 4-0. '
3. Consent Business
None
4. General Business
4.1 Consideration of Minnesota Investment Fund Application for Shutterfly,Inc.—Res.
No. 13-4 '
Samantha DiMaggio, Economic Development Coordinator, stated that the Department of '
Employment and Economic Development(DEED)has tentatively committed to a
Minnesota Investment Fund (MIF) Forgivable loan of up to $1,000,000 for Shutterfly.
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 Shutterfly, Inc.
All projects must meet minimum criteria for private investment, number of jobs created or i
retained, and wages paid, Shutterfly will be required to create 258 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. Shutterfly will be required to make a minimum investment of
$34 million dollars.
If Shutterfly does not meet the job, wage and investment goals,they will be asked to repay ,
the funds.
Official Proceedings of the August 7, 2013
Economic Development Authority Page 2
The EDA should also enter into a Grant Agreement with DEED which allows the issuance '
of a forgivable loan to Shutterfly, Inc.
Schurman/Clay offered Resolution No. 13.4, A Resolution authorizing and approving a '
Minnesota Investment Fund Application, Grant Agreement, and Forgivable Loan in
connection with Shutterfly, Inc. Motion carried 4-1 with Commissioner Lehman in
dissent.
5. Adiourn
Lehman/Schurman moved to adjoui�n to Tuesday, August 20, 2013 at 7:00 p.m. Motion
carried 4-0.
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J�llie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary
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OFFICIAL PROCEEDINGS OF THE
ECONONIIC DEVELOPMENT
AUTHORITY SHAKOPEE,
MINNESOTA
Regular Session
August 20, 2013
Members Present: President Jay Whiting, Commissioners Pamela Schurman, Matt
Lehman, Steve Clay 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 '
Tabke/Schurman moved to approve the agenda. Motion carried 5-0.
3. Consent Business
A. Approval of the EDA minutes from 07/16/13. '
B. EDA Bills from the period of 07/17/13 to 08/16/13
C. Revision to Development Agreement (including Business Subsidy Agreement)
for Rosemount, Inc.
Clay/Schurman moved to approve the Consent Agenda as presented. Motion carried
5-0.
4. General Business
4.A. Approval of Request for Subordination Decision under Residential Rehabilitation
Loan Program '
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Mr. Leek said James& Cheri Drawert received approval from the City on March 16, ',
2010,for a$15,000.00 loan under the Small Cities Development Program (SCDP)for a �
roof and rafter replacement. This program is a joint venture between the City of Shakopee
and Carver County Community Development Agency(CDA). The loan stipulated that
they are to pay a sum equal to a percentage of the full amount of the loan,with 10% of the '
full amount of the loan forgiven each year the borrowers remains in the home,for a period :
of 10 years, should they sell,transfer or convey the property to someone other than
themselves. The City/Carver County CDA does have a lien on the real estate to satisfy the '
repayment obligation and the cost to collect the repayment(see attached Repayment
Agreement).
At this time, the Drawert's are in the process of refinancing their current mortgage with
First American Title Insurance Company, and are asking that the City of Shakopee agree '
Official Proceedings of the August 20, 2013
Economic Development Authority Page 2
to take second lien position on the refinance with First American. They are not intending
to sell their home nor transfer ownership; they are attempting to take advantage of a
decrease in the mortgage interest rates. '
Lehman/Schurman moved to approve the request for subordination of a rehabilitation loan
for 906 Lewis Street, and direct staff to work with the Carver CDA to implement the
request, and move its adoption. Motion cai7�ied 5-0.
5. Adjourn
Lehman/Clay moved to adjourn to Tuesday, September 17, 2013 at 7:00 p.m. Motion
carried 5-0.
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�ilie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretaiy
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