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Home My WebLink About3.A. EDA Minutes Consent Business 3. A. SHAKOPEE TO: Economic Development Authority FROM: Lori Hensen, Deputy City Clerk DATE: 04/21/2015 SUBJECT: EDA Minutes Action Sought Move to approve the EDA Minutes from March 17 and March 31, 2015 Attachments: March 17, 2015 March 31, 2015 DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South March 17,2015 SHAKOPEE MINNESOTA 7:00 p.m. Present: President Kathi Mocol;Commissioner Brad Tabke;Commissioner Matt Lehman;Commissioner Mike Luce;Commissioner Jay Whiting Staff Interim City Administrator Kris Wilson;Community Development Director R.Michael Leek;Public Present: Works Director/Engineer Bruce Loney;Economic Development Coordinator Samantha DiMaggio;City Attorney Sarah Sonsalla 1. Roll Call 2. Approval of the Agenda Moved by Matt Lehman,seconded by Jay Whiting to approve the agenda. Vote: 5-0 Carried 3. Consent Business Moved by Brad Tabke,seconded by Jay Whiting to approve the Consent Agenda as presented. Vote: 5-0 Carried A. EDA Bills Moved to approve the EDA bills in the amount of$26,976.57 for the EDA Fund,which allows for internal charges that are applied to the EDA fund. (Motion carried under the Consent Agenda) B. EDA Minutes Moved to approve the EDA minutes from February 17,2015. (Motion carried under the Consent Agenda) C. Consideration of a Commercial Exterior Improvement Program Loan for CEM Properties,LLC Moved to approve a Commercial Exterior Improvement Loan in the recommended amount of $25,000 and authorize the appropriate officials to enter into Repayment Agreement with CEM Properties,LLC,for the building located at 828 First Avenue East,Shakopee.(Motion carried under the Consent Agenda) D. Authorize Res.No 15.3,A Resolution Approving an Interfund Loan and Transfer from the Equipment Fund to the Economic Development Authority(EDA) Offered Res.No 15.3,A Resolution Approving an Interfund Loan and Transfer from the Equipment Fund to the Economic Development Authority. (Motion carried under the Consent Agenda) 4. General Business None. 5. Adjourn to Tuesday,March 31,2015 at 7:00 p.m. a 2. ze,,, Lori He Interim City Clerk Kim Weckman Recording Secretary DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South March 31,2015 SHAKOPEE MINNESOTA 7:00 p.m. Present: President Kathi Mocol;Commissioner Matt Lehman;Commissioner Mike Luce;Commissioner Brad Tabke;Commissioner Jay Whiting Staff Community Development Director R. Michael Leek;City Attorney Jim Thomson;Acting City Clerk Present: Lori Hensen Attendees: Jesse Theis,Larry Paul,Imogene Bass 1. Roll Call 2. Approval of the Agenda Moved by Matt Lehman,seconded by Mike Luce to approve the Agenda. Vote: 5-0 Carried 3. Consent Business 4. General Business A. Tax Increment Financing(TIF)District No. 16--Rahr Corporation Ms.DiMaggio presented an application for Tax Increment Financing(TIF)District No. 16--Rahr Corporation.Rahr Corporation is a family-owned business that has been in operation since 1847.Rahr Malting Co.,a division of Rahr Corporation,manufactures and distributes malt for the brewing/beverage industry. Rahr is proposing a substantial expansion/redevelopment project in and around its current Shakopee campus,to include construction of: 1. a 112,000 square foot manufacturing,assembly,and processing plant,(the"Malt House")off of 3rd St.; 2. a 90,000 square foot warehouse located on the north side of County Rd.69 to serve their Brewer's Supply Group(BSG); 3.a 14,500 square foot maintenance warehouse off of 2nd St,and 4. an 18,400 square foot research laboratory(the"Tech Center")at the southwest corner of 1st Ave. &Apgar St. The proposed project will bring redevelopment to the north side of 1st Ave.,resulting in an increased tax base,job creation and more attractive corridor. Several deteriorating structures have been or will be removed as a result of this project.Rahr is also planning to add more staff to correspond with the expansion/redevelopment. The proposed tax increment district has been reviewed by Springsted,the City's financial consultants, and their analysis is attached for review. The proposed district would be a 9-year economic development TIF and is estimated to generate a total of$1,941,325. If granted the requested assistance,Rahr would begin construction this spring and anticipates completion by January 2017. Representatives from Rahr Malting gave a presentation regarding Rahr's history in Shakopee, community contributions,employee programs and plans for the future. Ms. DiMaggio reviewed the costs and conditions of the TIF. Mr.Lehman asked how the new building differs from the original structure from a fire standpoint. Mr. Theis answered that the BSG Warehouse will be fully sprinkled,as well as the Tech Center,and the warehouse.The Malt house itself will be a slipform concrete structure,so the concrete creates a firewall that exceeds the required standards. Mr.Whiting asked if the brewery included any plans for a taproom. Mr. Theis responded that the current plans are only for testing new product. Mr.Luce stated that he feels that Rahr has been a great partner in the community and that he is in full support of the project. Jordan Olson stated that he is in full support of the project and urged the Council to approve it. Moved by Jay Whiting, seconded by Mike Luce to approve Resolution No. 15-5,A Resolution Approving Tax Increment Financing Plan for Tax Increment Financing(Economic Development) District No. 16 and a Modified Redevelopment Plan for the Minnesota River Valley Housing and Redevelopment Project No. 1. Vote: 5-0 Carried Moved by Brad Tabke,seconded by Mike Luce to approve Resolution No. 15-4,A Resolution Approving a Contract for Private Development with the City of Shakopee and Rahr Corporation and Awarding the Sale of,and Providing the Form,Terms,Covenants and Directions for the Issuance of its Tax Increment Revenue Note,Series 2015,in the Original Aggregate Principal Amount of$1,883,086. Vote: 5 -0 Carried 5. Adjourn to Tuesday,April 21,2015 at 7:00 p.m. Moved by Mike Luce,seconded by Matt Lehman to adjourn. Vote: 5 -0 Carried dL417.i Lori H- sen Acting City Clerk Heidi Emerson Recording Secretary