F-1. Authorize Application to the Minnesota Department of Employment and Economic Development (DEED) for a $450,000 grant under the Minnesota Investment Fund (MIF) program to assist with the expansion of Rosemount, Inc. � w
9 S S CITY Of CHANHASSEN
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Chelsea Petersen, Assistant City Manager a
DATE: July 10, 2017
SUBJ: Application to the Minnesota Department of Employment and Economic
Development(DEED) for assistance under the Minnesota Investment Fund (MIF)
and Job Creation Fund (JCF)programs, to assist with the expansion of
Rosemount, Inc., a subsidiary of Emerson Electric Co.
PROPOSED MOTION:
"The City Council adopts the attached resolutions and authorizes the application for funds
available through the Minnesota Department of Employment and Economic Development's
Minnesota Investment Fund and Job Creation Fund programs."
Approval requires a simple majority vote of the City Council.
BACKGROUND
Rosemount, Inc., a subsidiary of Emerson Electric Co. has plans to expand business operations in
Chanhassen. This is one of three facilities located in Minnesota, with the other two located in
Shakopee and Eden Prairie. Rosemount, Inc. plans to invest$14 million in order to rehab the
current Chanhassen facility to increase capacity and optimize the office and manufacturing space
mix. In addition to the significant financial investment, an anticipated 80 jobs will be created as a
result of the upgrades to the Chanhassen location. The average annual salary for these full-time
benefit eligible positions is estimated to be$56,000. The project is expected to begin in 2017 and
be fully complete by 2020.
To assist with this $14 million project, Rosemount, Inc. is planning to make application to the
Minnesota Department of Employment and Economic Development's (DEED) Job Creation
Fund (JCF) and the Minnesota Investment Fund (MIF) and is seeking support from the City of
Chanhassen in these applications.
PH 952.227.1100• www.ci.chanhassen.mn.us• FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Todd Gerhardt
MN DEED Applications
July 10;2017
Page 2
The JCF program provides job creation awards and capital investment rebates to designated
businesses that retain or create permanent jobs and invest in property improvements. In order to
apply for funds through the JCF program,Rosemount, Inc. must have a resolution of support
from the City Council. Such a resolution indicates that the local community's planning goals are
not in conflict with the business. Given that the business is already located in Chanhassen,the
footprint of the building will remain largely unchanged, and the current use is permitted in the
zoning district, staff does not see any conflicts. The current Rosemount, Inc. project is eligible
for up to $850,000 in assistance from DEED's JCF. In addition to Chanhassen's consideration of
support, DEED will be holding a public hearing on the matter later this summer.
The MIF program provides loans to businesses that create or retain permanent jobs and invest in
machinery or property improvements. The current project is eligible for up to $450,000 funding
through the MIF program. In order to apply for assistance through the MIF program, Chanhassen
must hold a public hearing on behalf of Rosemount, Inc. If awarded funds, DEED would provide
a grant to the City of Chanhassen, who would then disburse funds for reimbursement-eligible
expenses to Rosemount, Inc.
There is no limit on JCF or MIF projects that can be applied for in a calendar year, so if another
project were to be brought forward Chanhassen would still be eligible to apply. Other than
Council support and staff time to assist with application documents and reporting, there is no
contribution for this project from the City of Chanhassen.
In addition to assisting in the application these two funding sources, staff intend to submit an
application to the Carver County Community Development Agency for a$60,000 grant based on
the creation of new jobs in Chanhassen. Further information on that process will be brought
forward at a later date.
RECOMMENDATION
Staff recommends approval of the attached Resolutions of Support.
ATTACHMENTS
1. Emerson Project Summary
2. JCF Resolution of Support
3. MIF Resolution of Support
4. Minnesota Job Creation Fund Fact Sheet
5. Minnesota Investment Fund FAQ
DUFFiPHELPS
Emerson Project : Summary�
Background
Rosemount Inc., a manufacturer of precision measurement and analytical equipment for industrial applications, is a subsidiary
of Emerson Electric Co. as part of their Automation Solutions division.Automation Solutions accounted for 62%of Emerson's
$14.5 billion sales in 2016. Emerson Electric Co. is#128 on the 2016 Fortune 500, and has 155 manufacturing locations
globally. Project Bounce Back evaluated domestic and international facilities to create the"Aerospace and High Integrity
Center"for manufacture of High Integrity/SubSea products. In Minnesota, Rosemount has existing facilities in Chanhassen,
Shakopee,and Eden Prairie.
Investment
Rosemount, Inc.would invest$14 million to rehab Chanhassen facility to increase capacity and optimize office/manufacturing
space mix.
Additional investment would be made in new machinery and equipment; at least$1 million in new equipment purchases are
anticipated.
Job Creation & Wages
An anticipated 80 new jobs would be created at the Chanhassen facility. New jobs would include direct labor and office
employees with an average hourly wage of$27.02($56,201 annually)for all positions.A benefit package is also offered to
employees.
The project would stabilize the existing jobs and increase statewide employment in Minnesota.
Timeline
Investment is expected to begin in 2017 and the project would be fully completed by 2020.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,MINNESOTA
DATE: July 10, 2017 RESOLUTION NO: 2017-
MOTION BY: SECONDED BY:
RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND
APPLICATION IN CONNECTION WITH ROSEMOUNT,INC.,
A SUBSIDIARY OF EMERSON ELECTRIC COMPANY
WHEREAS, the City of Chanhassen, Minnesota (the "City"), desires to assist
Rosemount, Inc., a subsidiary of Emerson Electric Co., a manufacturer of precision measurement
and analytical equipment for industrial applications, which is proposing to expand culTent
business operations in the City; and
WHEREAS, the City of Chanhassen understands that Rosemount, Inc., through and with
the support of the City, intends to submit to the Minnesota Department of Employment and
Economic Development an application for an award and/or rebate from the Job Creation Fund
Program; and
WHEREAS, the City of Chanhassen held a city council meeting on July 10, 2017, to
consider this matter.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of
Chanhassen, Minnesota hereby express their approval of the project proposed by Rosemount,
Inc. and its application for an award and/or rebate from the Job Creation Fund Program.
Passed and adopted by the Chanhassen City Council this 10th day of July,2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
YES NO ABSENT
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,MINNESOTA
DATE: July 10,2017 RESOLUTION NO: 2017-
MOTION BY: SECONDED BY:
RESOLUTION REGARDING THE SUPPORT OF A MINNESOTA INVESTMENT FUND
APPLICATION TO THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC
DEVELOPMENT IN CONNECTION WITH ROSEMOUNT,INC.,
A SUBSIDIARY OF EMERSON ELECTRIC COMPANY
WHEREAS,the City of Chanhassen acts as the legal sponsor for the project contained in the
Minnesota Investment Fund Application to be submitted on or about June 7, 2017 and that the Mayor
and City Manager are hereby authorized to apply to the Department of Employment and Economic
Development for funding of this project on behalf of Rosemount, Inc.; and
WHEREAS,the City of Chanhassen has the legal authority to apply for financial assistance, and
the institutional,managerial, and financial capability to administer the proposed project; and
WHEREAS, the City of Chanhassen has not violated any Federal, State, or local laws pertaining
to fraud,bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice; and
WHEREAS,upon approval of its application by the State,the City of Chanhassen may enter
into a Grant Contract with the State of Minnesota for the approved project, and that the City of
Chanhassen certifies that it will comply with all applicable laws, statutes, regulations and rules as stated
in the Grant Contract and described in the Project Compliance Certification of the Application; and
WHEREAS,the City of Chanhassen has obtained credit reports and credit information on
Rosemount, Inc. Upon review by the City of Chanhassen no adverse findings or concerns regarding,but
not limited to, tax liens,judgments, court actions, and filings with state, federal and other regulatory
agencies were identified. Failure to disclose any such adverse information could result in revocation or
other legal action.
NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of Chanhassen,
Minnesota hereby authorizes the Mayor and City Manager to execute the Grant Contract and
amendments, thereto, as are necessary to implement the project on behalf of the Applicant.
Passed and adopted by the Chanhassen City Council this 10th day of July,2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger,Mayor
YES NO ABSENT
nrilEMPLOYMENT AND
ECONOMIC DEVELOPMENT
Minnesota Job Creation Fund Program
Program Overview
The Job Creation Fund (JCF) program is DEED's newest program to encourage job creation and capital investment in new or
expanding businesses. The program provides job creation awards of up to$500,000 and capital investment rebates of up to
$500,000 for qualifying businesses.
Eligibility
Businesses may apply through a local government where their new or expanding business will be located and must be primarily
engaged in manufacturing,warehousing,distribution, IT,or other eligible activities. At minimum, a business must:
• Invest$500,000 in real property improvements if located in the Twin Cities Metro or$250,000 if located in Greater
Minnesota or if 51%of the business is cumulatively owned by minorities,veterans,women or persons with a disability
within one year of designation as a Job Creation Fund Business;and,
• Create 10 new full-time, permanent jobs if located in the Twin Cities Metro or 5 if located in Greater Minnesota or if 51%
of the business is cumulatively owned by minorities,veterans,women or persons with a disability within two years of
designation as a Job Creation Fund Business; and,
• Obtain a resolution of support from the local government where the business will be located.
Benefits
A business approved and designated by DEED for the program may request benefits after entering into a business subsidy
agreement with DEED, making an investment of at least$500,000 within one year, and having at least 10 new permanent full-
time jobs in place for one year if located in Twin Cities Metro or at least$250,000 and 5 new permanent full-time jobs in place
for one year if located in Greater Minnesota or if 51%of the business is cumulatively owned by minorities,veterans,women or
persons with a disability within one year of designation as a Job Creation Fund Business. Benefits include:
• Up to 7.5% rebate on capital investment in real property improvements in Greater Minnesota
• Up to 5% rebate on capital investment in real property improvements the Twin Cities Metro
• Between$1,000-$4,000 per new permanent full-time job per year, based on cash wages paid
• All new jobs must pay at least$12.85 in total compensation
• All wage and compensation levels are adjusted annually
Provisions for Large Projects
Businesses making a capital investment of more than $25 million may be eligible for these JCF awards:
• Up to$2 million ($1 million in capital investment rebates and$1 million in job creation awards)if the business creates at
least 200 full-time permanent jobs in the Twin Cities Metro or at least 75 full-time permanent jobs in Greater Minnesota.
• Up to$1 million in capital investment rebates for projects that will retain at least 75 full-time permanent jobs in Greater
Minnesota or 200 in the Twin Cities metro area.
Although equipment may be counted toward large project eligibility,the capital investment rebate only applies to the
expenditures related to real estate—land and building—improvements.
For More Information
Application materials,frequently asked questions and other information can be found at http://mn.gov/deed/business/
Economic Development Division
1st National Bank Building 332 Minnesota Street Suite E200 Saint Paul Minnesota 55101-1351
651-259-7114 PHONE 800-657-3858 TOLL FREE 651-296-5287 FAX 651-296-3900 TTY http://mn.gov/deed
AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER
Applicant Questions about the Minnesota Investment Fund
Answers to Frequently Asked Questions (FAQs)
The Minnesota Investment Fund provides loans to help businesses expand and grow. DEED
provides a grant to a local government organization that then provides a loan to the business.
Like all lending programs, transactions are guided by state laws/guidelines and associated
program requirements apply to all applications and financing transactions. It is important that
the growing business and assisting organizations know and understand these requirements.
1. When can the business hire employees? Hiring may begin at any time, but the
business will get credit for only those new jobs that are filled after your DEED Loan
Officer informs you that your application is complete.The employment base will be
established as of the application completion date.
2. What certifications do I need to sign as part of my application?All businesses will sign a
Prevailing Wage Certification,a Job Listing Certification and an Unemployment
Insurance Consent Form, as applicable.
3. When can I begin making purchases or begin construction? MIF funds and the
accompanying match dollars may be used only for expenditures occurring after the
date of the official MIF Award Letter from the DEED commissioner. In other words,
machinery and equipment funded by MIF funds or matching MIF funds may not be
purchased prior to the award date. Likewise, if MIF is funding construction,
construction may not begin until after the award date.
4. How long do I have to complete my legal documents and agreements? Businesses have
120 days from the Award Letter date to compete all legal documents related to the
MIF award or the award may be rescinded.
5. Can I make changes to the Grant Contract and the Loan Agreement? The template legal
documents were created in conjunction with the Minnesota Office of the Attorney
General and in accordance with state laws and State Office of Grants Management
Guidelines. As a result, only non-substantive changes are allowed.
6. What are the dates in the Grant Agreement?The Grant Agreement lays out four dates
relevant to the MIF financing.They are:
a. Effective Date: Date of Award Letter
b. Benefit Date: Date equipment operational or building certificate of occupancy
issued
c. Compliance Date: 2 years from Benefit Date
d. Expiration Date: 3 months after Compliance Date
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7. Is collateral required? Yes, MIF transactions are loans and security is required as
collateral. The security can take many forms—collateral on the equipment being
financed, mortgage on a building, a line of credit from another lender or a parent
company guarantee are among the possible options.
8. What documentation will I need to submit for proof of expenditures to receive my
disbursement? Third party verification such as invoices, sworn construction
statements, lien waivers, receipts etc. will be required for any eligible costs(costs
reimbursed by MIF and accompanying match), be sure to keep copes in the project
file. All expenditures representing leverage spending must be documented and
presented to DEED in an acceptable format as determined by your loan officer.
9. What kind of reporting will I need to do? Once a formal award letter is provided,the
business is required to complete and submit an Annual Progress Report detailed job
creation and wage levels each January until the Agreement ends. A final report also
will be due at the Compliance Date.These reports are required even if the MIF funds
have not been disbursed.
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