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HomeMy WebLinkAbout4. Approval of Minutes: July 6, 2004 & August 4, 2004 OFFICIAL PROCEEDINGS OF THE ECONONUCDEVELOPMENTAUTHORITY SHAKOPEE, MINNESOTA REGULAR SESSION JULY 6, 2004 Members Present: Chair Joos, Schmitt, Helkamp and Lehman. Members Absent: Menden Staff Present: Also Present: Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; BruceLoney, Public Works Director/City Engineer; Gregg V oxland, Finance Director; Jim Thomson, City Attorney; Mark Themig, Facilities, Recreation Director; Sergeant Flyml, Police Officer and Tracy Schaefer, Assistant to the City Administrator and Bob V ose, City Attorney for the Telecommunications Commission. I. Roll Call: Chair J008 called the meeting to order at 8:12 p.m. Roll was taken as noted above. This was a joint meeting with the City Council. The City Council was. already convened. II. Approval of the Af!enda: Lehman/Schmitt moved to approve the agenda as written. Motion carried 4-0. III. Approval of the Consent Af!enda: The following items were on the Consent Agenda. Item No.4 Approval of the Minutes for May 4,2004. Item No. 5a Approval of the bills in the amount of$152.46. Helkamp/Schmitt moved to approve the Consent Agenda. . Motion carried 4-0. IV. Approval of the Minutes of May 4, 2004: Action was taken under the Consent Agenda. V. Financial: a. Approval of the Bills. Action was taken under the Consent Agenda. VI. Joint Public Hearing with the City Council on Proposed Tax Increment Financinf! District No. 12. A. Resolution No. 2004-1, Resolution Approving Tax Increment Financing Plan For Tax Increment Financing District No. 12 And A Modified Redevelopment Plan For The Minnesota River Valley Housing And Redevelopment Project No.1. Helkamp/Lehman moved to open the public hearing for the Economic Development Authority (EDA) for approving a Tax Increment Financing Plan for Tax Increment Financing (TIP) District No. 12 and a modified Redevelopment Plan for the Official Proceedings of the July 6, 2004 Economic Development Authority Page -2- Minnesota River Valley Housing and Redevelopment. Motion carried 4-0. Chair Joos passed the gavel to Mayor Schmitt. Mr. Mc Neill reported that this was a joint public hearing for the purpose of the City Council and the EDA to decide if they should authorize a tax increment financing district and enter into an agreement regarding economic development assistance for a manufacturing facility proposed by Challenge Printing. Commissioner Lehman left the Council Chambers at 8: 15 p.m. Joe Hanneman, Chief Financial Officer for Challenge Printing, provided a short overview of what Challenge Printing is, who their customers are, the growth Challenge Printing has experienced and what they need from the City. Challenge Printing was a $70,000,000 national sheet feeding printing company with a wide variety of products and services. They employed approximately 350 employees with the average annual wage being just under $50,000. He noted the company had large, medium and small sized companies that they did business with. He noted Challenge Printings sales growth was about 41 percent over the last 16 years. Much of the sales growth was a result of reinvestment into the company and many new products; thus the need for larger quarters to achieve aggressive goals for more growth. Commissioner Lehman returned to the Council Chambers and took his seat at 8:20 p.m. Mr. Hanneman noted the City would benefit from: 1) proposed improvements of $5.6 million to the building thus increasing the market value property and property taxes, 2) the creation of at least 80 well paying jobs, 3) an increase of more than 400 hundred employees employed in this community, 4) use of outside services from within the community for the company, 5) the occupancy ofa vacant building today and 6) Challenge Printing and employees giving back to the community many of the dollars expended; Mr. Hanneman noted that because of the proposed move, there would be financial pressure on the company and assistance would be needed from the City and the County to offset some of the costs associated with the move to Shakopee. Mr. Hanman stated the cost to move to Shakopee was $25.6 million. Mr. Hanrnan showed a breakdown of the moving cost figure. He noted there was a gap in Challenge Printing'sfinancing needs of about $756,000. He stated the tax increment financing (TIF) from the EDA would help them cover this financing need. Official Proceedings of the July 6, 2004 Economic Development Authority Page -3- Mr. Hanman stated since the first time Challenge Printing was at the Council Chambers a few items had transpired to help bridge the financial gap resulting in a lesser financial need; he was of the opinion that this' move could now take place with the help of TIF funds. Mr. Bob Lothenbach, President and Owner of the Company, approached the podium and stated that he believed the location would be a great location for them because of STH 169. This location just fit for the company. There were other options available but this location fit the needs of the company best. Mr. McNeill noted this use ofTIF would be to create Tax Increment District No. 12 in the former Sumara building located on Valley Park Drive. Mr. McNeill noted initially a tax abatement form of assistance was asked for but after looking at that type financing, it was felt that TIF was preferable to the applicant and to the City. Mr. Mc Neill noted TIF would provide the applicant $756,120 (a set amount) over nine years in a pay-as-you-go arrangement in the form of a note. The tax abatement would have been for 15 years. The $756, 120 represented a significant portion (95%) of the total amount of the property taxes that would be paid to the City, County and School District. Mr. McNeill stated TIF also provided another advantage to the City. That advantage was no impact on the abatement cap for Economic Development projects. Mr. McNeill noted a note would be given to Challenge Printing in the amount of$513,900 (this figure was taking out the City's administrative handling costs (.05 percent) and taking out the State Auditors percentage .04 percent). Mr. McNeill noted if Challenge Printing failed to pay the property taxes there would be no money going back to them. Mayor Schmitt asked for comments from the public. There were none. The gavel was passed to Chair Joos for the Economic Development Authority. Chair Joos asked for comments from the public. There were none. Helkamp/Lehman moved to close the EDA public hearing. Motion carried 4-0. Commissioner Lehman inquired about the actual boundaries of this TIF district. Ms. Eddington addressed this question and explained the boundaries of the TIF district. Helkamp/Schmitt offered Resolution No. 2004-1, A Resolution Approving Tax Increment Financing Plan For Tax Increment Financing District No. l2 and a Modified Redevelopment Plan for the Minnesota River Valley Housing And Redevelopment Project No 1, and moved its adoption. Motion carried 4-0. Official Proceedings of the July 6, 2004 Economic Development Authority Page -4- B. Resolution No. 2004-2, Resolution Approving Contract for Private Redevelopment with Challenge Printing, Inc. and Awarding the Sale of and Providing The Form, Terms, Covenants and Directions forthe Issuance of Its $513,900 Tax Increment Revenue Notes, Series 2004. Helkamp/Schmittoffered Resolution No. 2004-2, A Resolution Approving Con~ract for Private Redevelopment With Challenge Printing, Inc. And A warding the Sale Of And Providing the Form, Terms, Covenants and Directions for the Issuance of Its $513,900 Tax Increment Revenue Note, Series 2004, and moved it s adoption. Motion carried4-0. VII. Other Business: There was no other business. VIII. Adjourn: Lehman/Helkamp moved to adjourn the meeting. The meeting adjourned at 8:35 p.m. Motion carried 4-0. ~J.Cf 'Oith s. Cox, Carole Hedlund EDA Secretary Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE,NUNNESOTA REGULAR SESSION August 4, 2004 Members Present: Chair Joos, Schmitt, Helkamp and Menden. Members Absent: Council member Lehman. Staff Present: Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Gregg V oxland, Finance Director; Jim Thomson, City Attorney; and Paul Snook, Economic Development Coordinator. I. Roll Call: Chair Joos called the meeting to order at 7:45 p.m. Roll was taken as noted above. II. Approval of the Agenda: Helkamp/Menden moved to approve the agenda as written. Commissioner Schmitt noted the meeting was held on August 4, 2004 because the regular meeting date of August 3, 2004 was National Night Out. Motion carried 4-0. III. Approval of the Consent Agenda: The following items were on the Consent Agenda. Item No.4 Approval of the Minutes for June 1,2004. Item No. 5a Approval of the bills in the amount of$46,256.62. Schmitt/Menden moved to approve the Consent Agenda as written. Motion carried 4-0. IV. Approval of the Minutes of June 1,2004: Action was taken under the Consent Agenda. v. Financial: a. Approval of the Bills. Action was taken under the Consent Agenda. VI. Resolution No. 2004-3, A Resolution Amending Resolution 2003-5, A Resolution Adopting the 2004 budget: Mr. Snook reported on the amendment to Resolution No.2003-5. Mr. Snook, Economic Development Coordinator, noted that Council directed the City's portion of the funding for the cost overrun for the Northridge Court Apartments project come from the Economic Development Authority (EDA) budget reserve. Mr. Snook noted the EDA was asked to adopt Resolution No.2004-3 that amends Resolution No. 2003-5, A Resolution which adopted the EDA 2004 budget. Official Proceedings of the August 4, 2004 Economic Development Authority Page -2- Helkamp/Schmitt offered Resolution No. 2004-3, A Resolution Amending Resolution 2003-5, A Resolution Setting The Tax Levy For 2003/04 By The Economic Development Authority For The City Of Shakopee And Adopting The 2004 Budget, and moved its adoption. Motion carried 4-0. Menden/Sclunitt moved to authorize payment of $80,000 to the Scott County HRA for the Northridge Court project overrun. Motion carried 4-0. VII. Other Business: There was no other business. VIII. Adjourn: Helkamp/Menden moved to adjourn the meeting. The meeting adjourned at 7:47 p.m. Motion carried 4-0. ~d,~ ~ith s, Cox, EDA Secretary Carole Hedlund Recording Secretary