The URL can be used to link to this page

Home My WebLink About4.F.3. Sewer Availability Charge (SAC) Credits - Elander Mechanical Plift1111 Consent Business 4. F. 3. SHAKOI'EE TO: Mayor and City Council FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 08/18/2015 SUBJECT: Sewer Availability Charge (SAC) Credits -- Elander Mechanical, Inc. (D) Action Sought Consideration of City of Shakopee and Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits for Elander Mechanical, Inc. Background The City Council and EDA have previously identified SAC credits as one method of facilitating economic development and redevelopment. Elander Mechanical, Inc. is requesting 6 City and Met Council SAC credits. The City SAC credits are valued at $2,850 ($475/credit) and the Met Council SAC credits are valued at $14,910 ($2,485/credit). Elander Mechanical, Inc. is requesting 6 SAC credits for a new 24,000-sq.-ft. office/warehouse facility at 645 Shenandoah Drive. The company is currently located at 700 Valley Industrial Circle, Shakopee. The company has 65 employees and plans to add 10 new jobs with its expansion. Established in 1982, Elander Mechanical is a Shakopee-based mechanical contractor that serves the Twin Cities metro area, specializing in new construction, remodels, and service/repair of plumbing and HVAC equipment. Recommendation The EDAC reviewed Elander Mechanical, Inc's request at their August 12, 2015 meeting and have recommended that the City Council award 6 SAC credits valued at $2,850 in City of Shakopee credits and $14,910 in Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits. Budget Impact None as the SAC credits were obtained from the Met Council once Rahr Malting came off the Metropolitan Council sewer system. The sewer fund maintains the balance, as a stand alone fund. Relationship to Vision This supports Goal D: Maintain, improve and create strong partnerships with other public and private sector entities. Requested Action If the City Council concurs, it should, by motion, approve the recommended 6 SAC credits valued at $2,850 in City of Shakopee credits and $14,910 in Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits to Elander Mechanical, Inc. Attachments: Application SHAKOPEE Sewer Availability Charge (SAC) Credit Application APPLICANT INFORMATION Business(Potential Business)Name: Elander Mechanical, Inc. Address: 645 Shenandoah Drive Property Identification Number(s):Current Parcel ID 274280020... New Parcel Doc ID A983777 Name and Contact Information for Authorized Representative Name:Thomas H. Elander Address:645 Shenandoah Drive City:Shakopee State: MN Zip Code:55379 Telephone:952-451-4910 Email:tom@elandermechanical.com Name and Contact Information for Property Owner Name: Thomas H. Elander Address: 645 Shenandoah Drive City: Shakopee State: MN Zip Code: 55379 Telephone: 952-451-4910 Email:tom@elandermechanical.com DESCRIPTION OF BUSINESS Please include type of business and description of product or services provided. Plumbing and HVAC Residential-Commercial Sales &Service Since 1982 65 Employees Number of credits requested: Number of jobs to be created: 10 Number of jobs to be retained: 65 PROPERTY INFORMATION Is the building currently vacant? I❑ Yes B No If yes,how many years has the building been vacant: COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351•952-233-9300•FAX 952-233-3801•www.ShakopeeMN.gov PROJECT INFORMATION Description of improvements and any anticipated"change of use"that the proposed project will result in: Construction of 24,000 SF OfficeNllarehouse Narrative explaining nature of project: 24,000 SF Building Footprint 4,000 SF Finished Office; 1-2,000 SF Mezzanine Footings for Future 2,000 SF Mezzanine ESTIMATED PROJECT TIMETABLE Task Estimated Completion Date Start of Construction 07/01/2015 Complete Construction 01/15/2016 Begin Operations 02/15/2016 Thomas H. Elander Authorized business con ct(p - name): 07/21/2015 ignature Date Thomas H. Elander Property owner(if iffer-n om the usiness)(print name): 07/21/2015 'S'ignature Date COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351•952-233-9300•FAX 952-233-3801•www.ShakopeeMN_gov DATA PRACTICES ACT The information that you supply in your application to the City of Shakopee/Shakopee EDA("City")will be used to assess your eligibility for financial assistance. The City will not be able to process your application without this information. The Minnesota Government Data Practices Act(Minnesota Statutes,Chapter 13)governs whether the information that you are providing to the City is public or private. If financial assistance is provided for the project,the information submitted in connection with your application will become public,except for those items protected under Minnesota Statutes,Section 13.59,Subdivision 3(b)or Section 13.591,Subdivision 2. I have read the above statement and I agree to supply the information to the City with full knowledge of the matters contained in this notice. I certify that the information submitted in connection with the application is true and accurate. 07/21/2015 Signatur /Title Date FOR CITY OF SHAKOPEE USE ONLY Determination Letter from METC attached: ❑ Yes ❑ No Reviewed by FINANCE: Reviewed by ECONOMIC DEVELOPMENT: Approved By: Date: #of SAC Units Awarded: December 2014 COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351•952-233-9300•FAX 952-233-3801•www.ShakopeeMN.gov ELANDER MECHANICAL INC. August 3, 2015 Ms. Samantha DiMaggio Economic Development Coordinator City of Shakopee 129 Holmes Street South Shakopee, MN 55379 Dear Ms. DiMaggio: Elander Mechanical, Inc. is a Shakopee-based company that specializes in installing, replacing and repairing multi- and single-family plumbing and HVAC systems. We have installed thousands of plumbing and HVAC systems in the last 30 years throughout the metropolitan area. We currently have 65 employees. As you probably know,we have outgrown our existing space. Late last year we purchased land in Shakopee near Highway 169 and will construct a new 26,000 square foot building on the parcel. This new, larger facility will improve our operations, allowing us to grow In addition, we hope to create another 10 jobs over the next few years. Unfortunately, the appraised value of our new building on an as-completed basis is significantly lower than the costs of constructing it. Additionally, our bank will not lend more than 85% of the appraised value, further exacerbating the gap. The divergence between cost and value means having to deplete our company's cash for construction, cash that would normally be needed for working capital. We arc therefore respectfully requesting credit for the SAC charges on our new building. Sincerely yours, Thomas Elander, President Dave Kriesel June 2, 2015 Building Official City of Shakopee 129 Holmes Street S. Shakopee, MN 55379-1328 Dear Mr. Kriesel: The Metropolitan Council Environmental Services (MCES) Division has determined the SAC to be charged for the wastewater capacity demand for Elander Mechanical to be located at Shenandoah Drive and Barenshcheer Blvd within the City of Shakopee. The City will be charged 6 SAC Units for this project, as determined below. This building has speculative office/warehouse. SAC Units Charges: Office 2669 sq. ft. @ 2400 sq. ft. /SAC 1.11 Meeting 271 sq. ft. @ 1650 sq.ft. /SAC 0.61 Warehouse 9426 sq. ft. @ 7000 sq. ft./SAC 1.35 Office (Speculative) 13,241 sq. ft. x 30% @ 2400 sq. ft./SAC 1.66 Warehouse (Speculative) 13,241 sq. ft. x 70% @ 7000 sq. ft./SAC 1.32 Net Charges: 5.60 or 6 At the time finishing permits are issued, the SAC assignment needs to be reviewed for a new determination based on that change. The business information was provided to MCES by the applicant at this time. It is also the City's responsibility to substantiate the business use and size at the time of the final inspection. If there is a change in use or size, a redetermination will need to be made. If you have any questions email me at jessicanve(@,metc.state.mn.us. Sincerely, jtazit. LvAdc Jessie Nye Supervisor, ES Revenue (SAC) JN: tj: 150602C6 (698943, 385199) Determination expiration: 06/02/2017 cc: Patty Latzke, City of Shakopee Tami Vidmar, City of Shakopee Michael Casper, RJ Ryan Construction __------ File, MCES — `4‘ ^ � /e):1 390 Robert Street North I St.Paul,MN 55101-1805 Phone 651,602.1000 I Fax 651,602.1550 I TTY 651.291.0904 I metrocouncii.org MET ROPOL iTAN COUNCIL An Equal Opportunity Employer s ® 1 e Y i a ^, W £ sIllip ejosauuly� 'aadoleys t E g z . ` V ;_ = I �� o? I 't 1VJINVHJ3W 213aNV13 } g t11I CE E C 1 A-S• � � CSh A — • o 1:^1I�, I l• r _ _ „ _s-F i � - _Ai 1 ., h I r. lUI'1—ice b A�-.� .0-P hi 31' ® y .4 - 1 5 'F ® V D ---I' %.,55a _i IY. II b 2. 1 ix ••4o.— — ' is-A ---A-- rill, [MOO 0I —O_ _Ii-- Oil b pqP ® ' moi .` I .r./1 C-.01 r I ,_, 6 j I 1 d L i4 15/10.1 11 b K . I 11 - 1 _ y�"I Vi vi mN •• EV:"p i e A-P I I I 1 n S ¢I l j ry nE 0 b I 1411111111111 § j�� L l' 4 /�/\J 1 k 1 1 ~ 1 I M I ® b � I r {. b i.1 L i1 6 ® V` -P-.----@ . _ I ( ® ® I C ® I b v b I I 1 L 4,_______J �® -- ---- -- Ali ---• ,o 1 I 4 I ®— ® I II XP A., • P A 1 A-P A-P A-P A-A Aru-i A-J, r A-P. A-A. A-AP A-Ar e Q �� o ® o zr-Harmon..rnIAxn.rwn xioxn] 't ,... g . ,.,,i, ..• oi€ €;$ figg elosauulVV 'aado�sys o • �qA� aE_ 1 �z _ ` • J -_ _E Di.k-' 1 �"a J lVDINVHD3W ?J3aNVl3 IIRx ; zS St#F Ss1Ss.geg� I f. :;o x o uA NMI A `i FS€51?c^ y y �, a f A-A P-A A-A A-A ' P-A! A-A A-A A-A A-Al A-A A-A A A-A . al-}t a a a aa a kv I II II 1 I.1 1 i rxrn ,Eyl xt :2 1,\ 4a ` b Pao a_,`• --- — I. 7. `�Lit, , - . .., z - --Q -1c ti _ �! �1.I i I .� 1 • n b ♦__- -a� -- - - —1__- - - - - I� I ��• . -- , I —ter w I I bill ilillid ilr2j ..1 see. t a ` b RIF 3 2 I kY�� b Hlil17 g'6. F k, 8':ti €23 z •IIIIIIIIIIIII� mm V•n u„a o a a o• o z 0 U - I a y' I 1 1 1 � ® . A I I ly6P I I no$E YB` I b - -' _ 1 r" 11-°1 1�1 1 I I8T jill/ IL? 1 1 (21 a , I a 1 dal al et, A-A A-A A-A A-A ATAt P-A A-A A-A A-H 1 P-•P,.0-.•P t Ar.t0, AAI yA, A-A. A-P[ A-PI O O oAe! O o O tv-xa.moln O nni\Mw10T.0003 •0!f