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Home My WebLink About3. Approval of Minutes: March 06, 2012 and March 20, 2012 OFFICIAL PROCEEDINGS OF THE ECONOMIC D�'VII,OPMENT AUTHORTIZ' SHAKOPEE, MINNESOTA Adjourned Reb lar Session March 6, 2012 Members Present: President Steve Clay, Commissioners Jay Whiting, Steve Clay, Matt Lehman and Brad Tabke. Commissioner Pam Punt was absent. Staff Members Present: Mark McNeill, City Administrator, Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/Engineer; 3ulie Linnihan, Finance Director; Jim Thompson, City Attorney; and Judith S. Cox, City Clerk 1. Roll Call President Clay called the meeting to order at 7:06 p.m. and roll was noted as above. 2. Approval of the Agenda Whiting/Lehman moved to approve the agenda. Motion carried 4-0. 3. J& J Application for Tax Increment Financing (TIF) for SanMar Project Michael Leek, Community Development Director, stated that J& J Minneapolis, LLC (Jc�.J) has submitted an application tio the City requesting tax increment financing in the amount of $1,�16,��9.00 to be used for site development costs in connection with a proposed 580,000 square foot warehouse distribution facility. The estimated total cost of the project is $35,871,437 and the $1,�16,��9 TIF assistance is proposed to be on a"pay as you go" basis for six years. Mr. Leek presented the EDA with an overview of the description of the project, the process for approval of a TIF plan, and the City's Criteria for Business Assistance. Mr. Leek also discussed the analysis Springsted provided to the EDA. Chuck Cayo of SanMar introduced himself to the EDA and discussed the expected number of employees and the future expansion of SanMar in Shakopee. Lehman/Whiting moved to recommend to the City Council that it initiate the process, and set the public hearing for April ?4, 201 Z, for creating a TIF District to provide assistance (in an amount to be determined to be necessary) for the proposed 580,000 square foot warehouse/distribution center, to be located at 4 Avenue and CR 83, because (a) the project represents significant job creation consistent with the City's business subsidy policy, (b) the project will result in a siQnificant inerease in tax base for the City, and (c) the project will pay above the corporate rate for jobs . Motion carried 4-0. Official Proceedin�s of the Narch 6, 2012 Economic Development Authority Page 2 4. 'I'rystar Inc. Application for Business �.ssistance in the Form of Tax Abatement Mr. Leek stated that Tr}�star Inc., as operating company and tenant, and Bridaewater LLC, as landlord have made application for business assistance in the form of tax abatement. Mr. Leek discussed the back�round on the Dean Lakes Business Park/Planned Unit Development (PUD). As part of the development of Dean Lakes, the intersection of CR 16 and CR 83 was reali�ned. In order to pay for the cost of those improvements, the City of Shakopee and Ryan Companies entered into a development agreement that allows the use of taxes generated by the commercial portion of the PUD to abate assessments for those improvements on business park parcels if certain job creation targets are m et. Mr. Leek then discussed the description of the 28 acre project on the west side of Dean Lake, the Dean Lakes Master Development A;reement, process of approval for a tax abatement a�reement and the City criteria for business assistance. The proposed ta� abatement of about �1,00Q,000 will be over a 15 year term from both the city and the county. About 6Q°�o of the jobs projected to be created would be above the level of 27�% of federal minimum wa�e. Chris Dahl, Sr. Vice President of Trystar presented the EDA with a presentation of who Trystar is and what they manufacture. Paul Holmes of Pope Architect presented a site plan of Trystar located in Dean Lakes. Whiting/Lehman moved to approve a recommendation to the City Council that it direct s�aff and the city's consultants to initiate the process for developing a tax abatement plan and schedule a May l, 2012 public hearing on the plan, and development ab eement to provide assistance (in an amount to be determined to be necessary) for the proposed 130,000 square foot Trystar manufacturing/office facility to be located in the Dean Lakes PUD, because (a) the project represents significant job creation consistent with the City's business subsidy policy, and (b) the project will result in a significant increase in tax base for the City. Motion carried 4-0. 5. Appointments to the Eeonomic D�evelopment Advisory Committee Mr. McNeill said that the interview committee comprised of Mayor Tabke, Cncl. Whiting and Paul Youn�s interviewed candidates for the openings on the EDAC. The interview committee is recommendin� that the following individuals be appointed to the EDAC: Kevin Wetherille — three year term expiring on February 28, 201� Debbie Barber — three year term expirin�„ on February 28, 2015 Mary Hernandez — balance of unexpired term expiring February 28, 2014 Ryan Love — balance of unexpired term expirin� February 28, 2013 Whiting/Tabke offered Resolution No. 2012-1: A Resolution Making Appointments to the Economic Development Advisory Committee, and moved its adoption. Discussion followed. Official Proceedin�s of the March 6, �Ol? Economic Development Authority Pa�re 3 Commissioner Lehman voiced his concern re,ardinb the fact that Mayor Tabke should not have been allowed to be appointed on the interview committee. Commissioner Lehman stated that it looks bad that the Mayor appointed his campai�n manaaer to the EDAC. Commissioner Clay asked for a vote on the motion. y Motion carried 3-1 with Member Lehman opposed. fi Adjourn. It was noted that there would be a special EDA meeting on April 24, 2012 for the � SanMar Project. Whiting/Lehman moved to adjourn to Tuesda}�, March 20, 2012 at 7:00 P.M. Motion carried 4-0. The meeting was adjourned at 8:?2 p.m. j�,�u;�,:ii � , �, �: ',J ith S. Cox EDA Secretary Ium Weckman Recordin� Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVII..OPMII�T AUTHORITY SHAKOPEE, MINNESOTA Regular Session March 20, 2012 Members Present: President Steve Clay, Commissioners Jay Whiting, Pamela Punt, Matt Lehman and Brad Tabke. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/Engineer; Julie Linnihan, Finance Director; Jim Thompson, City Attorney; and Judith S. Cox, City Clerk 1. Roll Call President Clay called the meeting to order at 7:47 p.m. and roll was noted as above. 2. Approval of the Agenda Leh^:a.L�Pnnt m�veu to approv� t:�e ag tr11U4. 1YlOCIV11 ca.�ied 5-0. 3. Approval of Minutes of February 21, 2012. Lehman/Whiting moved to approve the minutes of February 21, 2012. Motion carried 5- 0. 4. Election of EDA Secretary. Lehman/Whiting nominated Pamela Punt as EDA Secretary. Lehman/Whiting moved a white ballot for Pamela Punt as Secretary. Motion carried 5- 0. 5 Adjourn. Whiting/Punt moved to adjourn to Tuesday, April 17, 2012 at 7:00 P.M. Motion carried 5-0. �^ �� \, / 1 � `� � �� , - Judith S. Cox EDA Secretary Kim Weckman Recarding Secretary