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D-10. Support application to States Job Creation Fund from Private Business (Project Polly II) %�..�; I MEMORANDUM ���Y o�'� TO: Mayor & City Council C11H11I1H►JS�.�>>I FROM: Todd Gerhardt, City Manager 7700 Marker Boulevard ������� `��p � PO Box 147 ' "�'`' DATE: June 8, 2015 Chanhassen.MN 55317 SUBJ: Resolution in Support of an Application to the State of Minnesota Job Administration Creation Fund from a Private Business (Nicknamed Project Polly II) Phone:952.227�1100 Fax:952.227.1110 BACKGROUND Building Inspections Phone:95222�.��fio The City of Chanhassen has been approached by Greatel•MSP and a private business Fax:952.227.�1��0 (identified as Project Polly II) that is interested in locating in a commercial/industrial Engineering propel�ty that cu17•ently exists in Chanhassen. The name of the business is still Phone�95222�1�so confidential and has not been disclosed to the city, although the attached sheets Fax:952227.����o provide details 1•egarding proposed lease and improvement costs as well as estimates regarding jobs and wages. Finance Phone�957_.227.1140 Fax:952.227.�����o The company is planning to lnake application to the State of Minnesota Job Creation Fund. In order•to do so, the business must have a resolution of support fi•om the City Park&Recreation of Chanhassen. Such a i•esolution indicates that the local community's planning goals Phone 952.227.1120 Fax:�5�.2271����o are not in conflict with the business. Given that the business under consideration is a pei7nitted use in the zoning district, staff does not see any conflicts. Piecrea4ion�,��i4[;r 2310 Coulter Boulevaid RECOMMENDATION Phone�952.227.1400 Fax�957.2?L 1404 Staff recommends approval of the attached resolution of support. �'I�niii����� Natural Resouf�ces ATTACHMENTS Phone:952.227.1130 Fax:952.227.1110 l. Resolution of Support. Public Worlt� 2. Minnesota Job Creation Fund Fact Sheet. 7901 Park Place Phone:952.227.1300 Fax:952.227.1310 Seniar Center Phone�952.2271125 Fax�952.27%.1110 Website www ci.chanhassen.inn.las g:Aadmin\tg\project polly ii.docx Chanhassen is a Comonienity for Life-Providiny for loday and Planning ior lomon�o�n� CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 8,2015 RESOLUTION NO: 2015- MOTION BY: SECONDED BY: THE CITY OF CAANHASSEN SUPPORTS THE JOB CREATION AND CAPITAL INVESTMENT IN CONNECTION WITH PROJECT POLLY II WHEREAS, the City of Chanhassen, Miimesota(the "City"), suppoi-ts and encourages the job creation and capital investment represented by Project Polly II wllich is a high quality graphics and printing company, wllich is proposing to occupy an existing facility in the City; and, WHEREAS, the City of Chanhassen understands that Project Polly II intends to submit to the Miiuiesota Department of Employment and Economic Development an application for aii award and/or rebate fi�om the Job Creation Fund Pi-ogram; and, WHEREAS, the proposed project ineets the City's planning goals, and the City has given site plan approval for the building, and the land use is permitted in this zoiling district; and, WHEREAS, the City of Chanhassen held a city council ineeting on June 8, 2015, to consider this matter. NOW, THEREFORE, BE IT RESOLVED that, after due consideration, the Mayor and City Council of the City of Chailhassen, Minnesota,hei-eby express their approval of the project proposed by Project Polly II. Passed and adopted by the Chanhassen City Council this 8t�' day of June, 2015. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT � POSITIVELY S� Job Creation Fund JCF Pro ram � ) g Department of Employment and Economic Development Application APPLICATION PROCEDURES The Job Creation Fund (JCF) Program provides job creation awards and capital investment rebates to designated businesses that retain or create high-paying,full-time permanent jobs and invest in real property improvements. The program is available statewide for manufacturing, distribution,warehousing, and other eligible business activities. Applications are accepted on a year-round basis as funds are available. To become a designated JCF business and receive benefits, a business must work in conjunction with the local government where the JCF business will be located. A JCF application must be completed and submitted to the Department of Employment and Economic Development(DEED) by the local government. Step-by-step instructions are listed below and applications may be submitted by mail or email to: Emily Johnson Program Manager—Job Creation Fund 332 Minnesota Street,Suite E200 St. Paul, MN 55101 Emilv.a.iohnson@state.mn.us Completing the Job Creation Fund (JCF) Program Application: Step-by-Step Instructions In consultation with DEED,the local government will make a preliminary determination about whether a business meets the minimum program requirements. Use the Job Creation Fund Eligibility and Application Checklist on the program website for guidance. If a business is potentially eligible,the following steps are completed: 1. The business provides the information to the local government needed to complete JCF Application. A local government resolution in support of the project must be included. Local officials must submit the application to DEED. 2. DEED evaluates the application and notifies the local government and business of approval or denial. If approved, DEED will formally designate the business as a JCF business and determine a job creation award and/or capital investment rebate amount. Awards and/or rebates of$500,000 or more require DEED to hold a public hearing. 3. Jobs created and/or capital investment expenditures may be counted after the business is formally notified by DEED that it has been designated as a JCF business. 4. DEED will draft a business subsidy agreement specifying the award and/or rebate to be provided after required job creation and capital investment goals are met. The JCF business and the DEED commissioner sign the business subsidy agreement. 5. The local government will assist the business with submitting required annual progress reports, payment request documentation, and other information requested by DEED.The local government will also provide information on annual changes in wage requirements. 1 102214 �,G�,POSITIVE�`�l/ `�i JOB CREATION FUND PROGRAM APPLICATION DepartmeM of Employment and Eeonomk Oevebpment SECTION 1 - LOCAL GOVERNMENT AND BUSINESS APPLICANT INFORMATION Local Government Project Sponsor: Local Government Contact Name and Title: City of Chanhassen Todd Gerhardt, City Manager Email: Telephone: tgerhardt@ci.chanhassen.mn.us 952-227-1100 Address: City/State/Zip: 7700 Market Blvd Chanhassen/MN/55317 Business Legal Name: � ,��� (� ( I --�j" Parent Company Name(if applicable): , � I�� � � Mailing Address: �- City/State/Zi : � Street Address for Project Applying for JCF (JCF Project): City/State/Zip for JCF Project: Chanhassen/MN/5517 Primary Business Contact and Title: E-mail: Website: Telephone: � Minnesota Tax ID: FEIN: � � NAICS Code: Primary Business Activity for Proposed Project: SECTfON 2- PROJECT OVERVIEW Pro'ect Type: New business with no parent company or current operations ■ Expansion of existing facility or Minnesota company Expansion to Minnesota by a company with existing operations outside Minnesota Project will involve: � Leasing an existing facility where leasehold improvements will be made Leasing a facility to be constructed Ownership of an existing facility and making improvements Construction and ownership of a new facility Are there facility or land limitations that do not allow the business to expand at an existing Minnesota facility? �Yes �No �Not applicable Id thi oject be located outside of Minnesota and serve the same customers? �Yes �No Project Timeframe: Task: Estimated Completion Date:(mm/dd) Commitment of all funds 07/01 Start of construction 07/01 Purchase equipment 09/01 Complete construction 09/30 Begin operations 10/01 2 102214 Current number of permanent,full-time employees company-wide: 398 Current number of permanent,full-time employees in Minnesota: 385 Current number of permanent,full-time employees at proposed JCF site:625 Will anyjobs be relocated from another Minnesota site to the proposed JCF site? ■ Yes No If yes,which location(s)will the employees be relocated from? � *for jobs relocated from another Minnesota location, a letter in support of the move from the city where the job will be moving from must be attached Average wage for retained and/or new permanent,full-time employees:$24.00 Projected number of new full-time permanent jobs at proposed JCF project site: To be created in Year 1 To be created in Year 2 To be created in Year 3 # new FT, permanent j�bs: g0 80 80 *full-time permanent jobs means positions with expected work hours of 2080 annually n � :�,, Sources& Uses: *since JCF funds are pay for-performance, they should not be included as a source or use of funds Bank(s) Equity State Local Gov't Other Total ( 1 '� Property Acquisition �, �o I Site Improvement ' $o New Construction $o Renovation of an Existing Building $$00,400 $200,100 $1,000,500 Purchase of Machinery &Equipment $� Infrastructure $1,563,600 $390,900 $1,954,500 Other: Equipment Relocation $343,200 $a5,aoo $429,000 Other: Furniture $150,aoo $3�,�00 $�as,5oo Total Project Cost $2,858,000 $714,500 $0 $0 $0 $3,572,500 Does the property or the business have any outstanding local,state or federal tax liabilities? Yes ■ No If yes, describe: Have state environmental review requirements been met for the project, if applicable? �Yes �No Are there current or unsatisfied judgments or injunctions against the business or owners? Yes ■ No If Yes, describe: Is there current or pending litigation involving the business? �Yes � No If yes,attach summary and disposition. Within the past five years, has there been any violation(s),citation(s),or complaint(s)of discrimination filed �a ainst the company in a state or federal court or before any state,federal or local government agency? Yes � No If Yes, attach a copy of the violation(s),citation(s),or complaint(s)and the disposition of each. 3 102214