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