HomeMy WebLinkAbout5.F.7. Approve Resolution No. 7436, A Resolultion Granting Support of a Job Creation Fund Application in Connection with Rosemount, Inc. Palft Consent Business 5. F. 7.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 03/18/2014
SUBJECT: Approve Resolution No. 7436, A Resolution Granting Support of a Job Creation Fund
Application in Connection with Rosemount, Inc. (D)
Action Sought
Approval of Resolution No. 7436, A Resolution Regarding the Support of a Job Creation Fund
Application in Connection with Rosemount, Inc.
Background
The Job Creation Fund provides financial incentives to new and expanding businesses that meet
certain job creation and capital investment targets.Companies deemed eligible to participate may
receive up to $1 million for creating or retaining high - paying jobs and for constructing or
renovating facilities or making other property improvements. In some cases, companies may
receive awards of up to $2 million.
The program is available to businesses engaged in manufacturing, warehousing, distribution,
technology- related industries, and other eligible activities. Companies must work with the local
government (city, county or township) where a project is located to apply to DEED to receive
designation as a Job Creation Fund business.
To be designated as a Job Creation Fund business, a business must, at minimum:
• Be engaged in an eligible business activity
• Obtain local government support for their project via council resolution
• Invest at least $500,000 in real property improvements within one year of becoming a
designated Job Creation Fund business
• Create at least 10 new full -time permanent jobs within two years of becoming a Job
Creation Fund business while maintaining existing employment numbers
• Pay at least $12.45 in wages and benefits in 2014, adjusted annually based on 110 percent of
federal poverty guidelines. The level will be $12.61 starting Jan. 1, 2015.
• Have other location options outside of Minnesota
• Cause no undue harm to Minnesota business competitors
• Certify that the project would not occur without Job Creation Fund assistance
Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation
Fund.
Companies that meet eligibility requirements must sign a business subsidy agreement with DEED
to meet job retention, creation, wage, and capital investment requirements. The following benefits
may be available once a business meets the conditions of its agreement and provides proof of
performance:
• $1000 per year per job created for jobs paying at least $26,000 in cash wages
• $2000 per year per job created for jobs paying at least $35,000 in cash wages
• $3000 per year per job created for jobs paying at least $45,000 in cash wages
• Up to a 5 percent rebate for real property improvements for businesses located in the Twin
Cities Metro
• Up to a 7.5 percent rebate for real property improvements for business located in Greater
Minnesota
Recommendation
Based on the requirements for additional job creation and investments being made, staff
recommends the support and approval of the attached Resolution No. 7436, relating to a Job
Creation Fund application for Rosemount, Inc.
Budget Impact
As the funding is from the State of Minnesota, there is no direct financial impact on the City as a
result of the Job Creation Fund Program Award to Rosemount, Inc.
Relationship to Vision
This supports Goal D, "Maintain, improve and create strong partnerships with other public and
private sector entities ".
Requested Action
If the Council concurs, it should, by motion, approve Resolution No. 7436, A Resolution
Regarding the Support of a Job Creation Fund Application in Connection with Rosemount, Inc.
Attachments: Rosemount Job Creation
CITY OF SHAKOPEE, MINNESOTA
RESOLUTION NO. 7436
RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION
FUND APPLICATION IN CONNECTION WITH ROSEMOUNT, INC.
WHEREAS, the City of Shakopee, Minnesota (the "City "), desires to assist Rosemount, Inc. a manufacturer, which is
proposing to construct a facility in the City; and,
WHEREAS, the City of Shakopee understands that Rosemount, Inc., through and with the support of the City, intends to
submit to the Minnesota Department of Employment and Economic Development an application for an award and/or
rebate from the Job Creation Fund Program; and,
WHEREAS, the City Council of the City of Shakopee held a meeting on March 18, 2014, to consider this matter.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shakopee Minnesota, does hereby approve
the project proposed by Rosemount, Inc. and its application for an award and/or rebate from the Job Creation Fund
Program.
Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 18 Day of March, 2014.
Brad Tabke, Mayor
ATTEST:
Julie Linnihan, City Clerk