10/06/2016 EDAC Packet - Laserfiche WebLink

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Financial Assistance Estimated Project Assistance: Based upon the above project scenario, the project could qualify for the following assistance: Tax Increment Financing (TIF): Based upon the current project parameters, the project could be eligible for TIF assistance for qualified costs associated with the project. This assistance would be based upon the new property tax increment the expansion would create and the project having qualified costs equaling any proposed TIF assistance. The determination of the available assistance would be calculated after the final project parameters are determined and increment generation projections are completed. The City's current policy would allow for up to 80% of the new increment being created to be used to assist the project. This program does require that the community complete a "but for" finding to aHow for the assistance to be awarded. Minnesota Investment Fund (MIF): Based upon the above project parameters, the project could be awarded a loan, which may become forgivable, currently estimated at $1,000,000. The amount of the final award would be based upon the jobs created and those positions meeting the required salary levels (currently estimated at 700 above $15/hour) and having the required privately funded capital expenditures (currently estimated at over $265,000,000) to achieve a 1:1 ratio for the assistance. Depending on the final project parameters and the company meeting those requirements, the loan could become forgivable. Traditionally, the company has 2 years to fulfill the requirements of the loan agreement at which time the determination of forgivably would be completed. This assistance would assume that the MIF has sufficient funds for the award at the time that the project is announced. This program does require that the community complete a "but for" finding to allow for the assistance to be awarded. Minnesota Job Creation Fund (JCF): The JCF program would allow for the company to receive a 5% rebate on the capital expenditures (construction costs, materials etc.) up to $500,000. In addition, this program allows for up to $500,000 in job creation rebates based upon the jobs created and their salary levels. Using the current project parameters with $265,000,000 in capital expenditures for the project could qualify for up to $500,000 in capital rebates. This projection is based on all of the capital expenditures qualifying for the 5% rebate and would be adjusted as the final breakdown of expenditures is determined. The company may also qualify for a job creation rebate of a total of $500,000. If the project is determined to be a large project the amount of the possible rebate could be increased to a maximum of $2,000,000 ($1,000,000 for each component). This estimated award would be contingent on JCF having sufficient funds for the award at the time that the project is announced. Minnesota Job Skills Training (MJSP): The Minnesota also has the Job Skills Partnership that provide up to $400,000 in grants for the training and/or retraining of workers for the updated facility. These funds would be available in conjunction with an accredited educational institution that would be helping to develop the training program. The funds would be awarded to the accredited institution for use with the company. This program does require a match from the company which is generally covered by the company paying the employees to attend the training. Depending on how the training program is structured the training could occur at your facility making it even more convenient. This program does allow for continued access of funds as each training program is completed. September 22, 2016 Page 4 of 5