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Home My WebLink About6.F.5. Sewer Availability Charge (SAC) Credits -- Duke Realty Limited Partnership Consent Business 6. F. 5. St-USKOPEE TO: Mayor and City Council FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 12/01/2015 SUBJECT: Sewer Availability Charge (SAC) Credits -- Duke Realty Limited Partnership (D) Action Sought Consideration of City of Shakopee and Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits for Duke Reality Limited Partnership. Background The City Council and EDA have previously identified SAC credits as one method of facilitating economic development and redevelopment. Duke Realty Limited Partnership is requesting 38 City and Met Council SAC credits. The City SAC credits are valued at $18,050 ($475/credit) and the Met Council SAC credits are valued at $94,430 ($2,485/credit). Property Owner Duke Realty Limited Partnership and its tenant, Milestone AV Technologies, Inc., are requesting the credits for a new 242,000 square foot assembly and warehouse/distribution facility currently under construction at the corner of Shenandoah Drive and 4th Avenue, Shakopee. Milestone AV is currently leasing a facility at 804 Valley Park Drive, Shakopee, and plans to consolidate its Savage and Shakopee locations into this new expanded facility. The company currently has 35 employees in Shakopee and will relocate 120 jobs from Savage. It plans to add 45 new jobs with the expansion. Milestone AV Technologies is a leading global provider of innovative mounting and display solutions for various audiovisual technologies. Its innovative products, sold principally under the Chief, Sanus, Da-Lite, and Projecta brand names, are sold through numerous channels, including Pro AV dealers, regional home theater dealers, consumer electronics retailers, mass merchants and original equipment manufacturers. The company currently serves a broad base of more than 6,000 global customers with a U.S. headquarters in Eden Prairie, MN. Recommendation The EDAC reviewed Property Owner Duke Realty Limited Partnership request at their November 18, 2015 meeting and have recommended that the City Council award 19 SAC credits valued at $9,025 in City of Shakopee credits and $47,215 in Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits. The EDAC asked Duke Realty if they would be interested in a loan to help pay the remaining balance but they declined stating they were only interested in a grant. 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 19 SAC credits valued at $9,025 in City of Shakopee Credits and $47,215 in Metropolitan (MET) Council Sewer Availability Charges (SAC) Credits to Duke Reality Limited Partnership. Attachments: Application WILLA! Sewer Availability Charge (SAC) Credit Application APPLICANT INFORMATION Business (Potential Business) Name: Milestone AV Technologies, Inc. Address: Shenandoah Drive & 4th Avenue Property Identification Number(s):279050211 Name and Contact Information for Authorized Representative Name: Josh Budish Address: Shenandoah Drive &4th Avenue City: State: Zip Code: Telephone: Email: Name and Contact Information for Property Owner Name: Josh Budish Address: 1600 Utica Avenue South, Suite 250 City: M;v =.p , State: MN Zip Code: �h�— Telephone: � S� S ' �-�12� Email: `o ma . �� '° e „,��(e J DESCRIPTION OF BUSINESS Please indude type of business and description of product or services provided. Milestone AV Technologies is a leading designer and manufacturer of branded audiovisual products including flat panel mounting solutions, projector mounts, screens, equipment racks and AV furniture for both the consumer and commercial AV markets. Milestone's innovative products, sold principally under the Chief, Da-Lite and Sanus brand names, are sold through numerous channels, including Pro AV dealers, regional home theater dealers, consumer electronics retailers, mass merchants and original equipment manufacturers. The company currently serves a broad base of more than 6,000 global customers with headquarters in Eden Prairie, Minn. Number of credits requested: 38 Number of jobs to be created: 160 Number of jobs to be retained: 40 PROPERTY INFORMATION Is the building currently vacant? fYes E]No If yes,how many years has the building been vacant: Land is 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: Currently, the land is vacant So the improvements entail going from a vacant raw agricultural lot to a fully developed, modern bulk I-1 industrial building. Narrative explaining nature of project: 242,004 SF industrial build-to-suit containing approximately 13,000 SF of office, 2,000 SF of lab/manufacturing, 113,500 SF of light assembly, and 113,500 SF of warehouse/distribution. Ability to expand building by 60,300 SF for additional light assembly and warehouse/distribution. Car parking for 200 employees. ESTIMATED PROJECT TIMETABLE Task Estimated Completion Date Start of Construction 12/15/16 Complete Construction 7/15/16 Begin Operations 9/1/16 Authorized business contact(print name): Josh Budish ,,,.._4 (9_, . „______7 hilt /14 Signat Date /7 Pro rty owner(if different from the business) (print name): Signature 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("Cit)")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. &/ ( j ti, Sign e/Ti Date FOR CITY OF SHAKOPEE USE ONLY Determination Letter from METC attached: El 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