CC Staff Report 08-25-201441
CITY OF
CgANgASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phoney 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
WWW.ci.chanhassen.mn.us
E_ d
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Laurie Hokkanen Assistant City Manager
Mana
g
DATE: August 20, 2014 b lk-co.
RE: Resolution of Support for a private business (nicknamed Project
Polly) application to State of Minnesota Job Creation Fund
BACKGROUND
The City of Chanhassen has been approached by Greater MSP and a private
business (identified as Project Polly) that is interesting in locating in a commercial
industrial property that is currently under construction in Chanhassen. The name
of the business is still confidential and has not been disclosed to the City,
although the attached sheets provides details regarding proposed lease and
improvement costs as well as estimates regarding jobs and wages.
The company is planning to make application to the State of Minnesota Job
Creation Fund. In order to do so, the business must have a Resolution of Support
from the local jurisdiction. Such a resolution indicates that the local community's
planning goals are not in conflict with the business. Given that the site plan has
been approved, the building is under construction, and the use is permitted in the
zoning district, staff does not see any conflicts.
RECOMMENDATION
Staff recommends approval of the attached Resolution of Support.
ATTACHMENTS
1. Project Polly Fact Sheet
2. Resolution of Support
3. Minnesota Job Creation Fund Fact Sheet
Chanhassen is a Community for Life - Providing forToday and Planning for Tomorrow
GINOVUS
sass Keystone Crossing
suite 14 5 0
INDIANAPOLIS, IN 46240
Project Summary: CONFIDENTIAL - UDPATED Project Polly
Capital Investment (Through 2019)
Land Acquisition: TBD
Lease Payments: $$5.25M
Personal Property: $5.85M million in manufacturing and special tooling,
equipment
Employment and Payroll (Excluding Benefits): (by 12/31/2019)
Existing Jobs: 75
Average Hourly Wage: $36.33
New Jobs: 32
Average Hourly Wage: $13.89
Phase -In Positions
Year 1 = 9 Professional Management - 3
Year 2 = 7 Manufacturing - 28
Year 3 = 11 Customer Care - 1
Year 4 = 3
Year 5 = 2
logistics, and IT
Company Overview
Since 1976 the company has been designing and filling containers that hold many of the
world's top beauty products. The company is a key solutions provider to many of the top
health and beauty brands with FDA registered laboratory and production facilities. Services
include injection molding, custom design, decorating & labeling, compounding & filling.
With focus on innovative solutions, strong customer relationships and speed to market, they
are a leader within the industry. A key differentiator is their ability to control the process
and costs; via creation of the container through retail ready packaging.
Project Description
Based upon extensive internal strategic planning, logistics analysis, existing customer
demand and current growth strategy, the company is evaluating building options for lease
Project Competition
Minnesota - Chaska, Shakopee, Chanhassen
Wisconsin
North Carolina
Project Time Line
Q3 2014 - Site Selection
Q3 - 2015 - Operational
Contact Information
Larry Gigerich, Managing Director
larry @ginovus.com; 317.819.0890
Leslie Wagner, Director
leslie @ginovus.com; 317.819.4412
T 317 819 0890
F 317 819 0888 WWW.ginoVUS.COM
DATE:
MOTION BY:
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION NO: 2014-
SECONDED BY:
THE CITY OF CHANHASSEN SUPPORTS THE JOB CREATION AND CAPITAL
INVESTMENT IN CONNECTION WITH PROJECT POLLY
WHEREAS, the City of Chanhassen, Minnesota (the "City "), supports and encourages
the job creation and capital investment represented by Project Polly, a health and beauty
container manufacturing company, which is proposing to occupy and build -out a facility in the
City; and,
WHEREAS, the City of Chanhassen understands that Project Polly 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 proposed project meets the City's planning goals, and the City has
given site plan approval for the building, and the land use is permitted in this zoning district; and,
WHEREAS, the City of Chanhassen held a city council meeting on August 25, 2014, to
consider this matter.
NOW, THEREFORE, BE IT RESOLVED that, after due consideration, the Mayor and
City Council of the City of Chanhassen, Minnesota, hereby express their approval of the project
proposed by Project Polly.
Passed and adopted by the Chanhassen City Council this 25th day of August, 2014.
ATTEST:
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
YES NO ABSENT
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 within one year of designation as a Job Creation Fund
Business; and,
a Create 10 new fuii -time, permanent jobs 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. 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 - $3,000 per new permanent full -time job per year, based on cash wages paid
• All new jobs must pay at least $12.48 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.
• 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/
1/10/14 Business and Community Development Division
1st National Bank Building ■ 332 Minnesota Street, Suite E200 ■ Saint Paul, MN 55101 -1351 USA ■ www.positivelyminnesota.com
Toll Free: 800 - 657 -3858 ■ Phone: 651- 259 -7114 ■ Fax: 651 - 296 -5287 ■ TTY: 651- 296-3900
An equal opportunity employer and service provider.