HomeMy WebLinkAbout06/02/2016 EDAC PacketCITY OF LINO LAKES
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING
Thursday, June 2, 2016
8:00 A.M.
Community Room
AGENDA
1. CALL TO ORDER AND ROLL CALL
2. APPROVAL OF MINUTES. May 5, 2016
3. DISCUSSION ITEMS
A. Business Retention Plan Draft
B. Business Subsidy Criteria Update
C. 35E Distribution Facility — Tax Increment Financing
D. Project Updates
ENWEIV1319710"M
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: May 5, 2016
MEMBERS
PRESENT: Nathan Vojtech, Don Johnson, Lou Masonick, Thomas Colgan
MEMBERS
ABSENT: Chad Wagner, Julie Schwartz, Rebecca Glewwe, Tami Wier
OTHERS PRESENT: Michael Grochala, Alex McKenzie
APPROVAL OF MINUTES
It was moved by Lou Masonick to approve the minutes of January 7, 2016, March 3, 2016 and
April 7, 2016. The Motion was seconded by Nathan Vojtech and passed unanimously.
PROPOSED WAREHOUSE/DISTRIBUTION FACILITY — 35E CORRIDOR
Mr. Grochala and staff have been working with United Properties on construction of a large
industrial warehousing/distribution facility along 35E. The applicant is proposing the site be
rezoned to Planned Unit Development (PUD) to accommodate storage of semi -trailers on site.
The applicant is requesting assistance in the form of Tax Increment Financing. 21s' Avenue, will
need to be extended to service the site. The road project is proposed to begin in 2017, with
negotiations between the city and developer underway. The proposed groundbreaking of the site
is August, but the applicant could still move to another adjacent location in Centerville.
UPDATING THE ECONOMIC DEVLEOPMENT BUSINESS SUBSIDY CRITERIA
Mr. Grochala explained the City's Business Subsidy Criteria has not been updated since 2003,
and is in need to be revised due to changes in state law. Most of the updates are minor word
reconsideration such as adding EDA in phrases. Mr. Grochala asked the members opinion on
Section 3.02, subset C, that states a requirement of a minimum number of jobs that must be
created, to be eligible for the program. A few of the members brought up the point not to
discourage small businesses from seeking assistance. Job goals may need to be reviewed on a
case by case basis, but a minimum may be required. There will be more discussion in the future
and Mr. Grochala will come back with more recommendations.
PROJECT UPDATES
Mr. Grochala provided updates on projects throughout Lino Lakes. Mattamy Homes submitted a
land use application for PUD Development Stage Plan/Preliminary Plat Review. The City of
Lino Lakes and the Mattamy Homes developers are coordinating and discussing potential
architectural design standards and guidelines, along with other specifics. Anoka County along
with the City of Lino Lakes is working on installing a playground area behind the YMCA at the
Legacy at Woods Edge development. The 49 Club is still in the works to be demolished by the
property owner sometime this year. The North Oaks Development is moving forward with a
development at Centerville Road and County J. The project may need to include commercial
sites for future development. At Apollo Dr. and Sunset Rd. will have a roundabout installed
summer of 2016.
ADJOURNMENT
The meeting was adjourned at 8:55 AM.
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3A
STAFF ORIGINATOR: Michael Grochala
EDAC MEETING DATE: June 2nd, 2016
REQUEST: Draft Business Retention & Expansion Program
BACKGROUND
Based on previous discussions with EDAC, Kirsten Barsness, Barsness Consulting, has prepared
a draft Business Retention and Expansion (BRE) Program for review by the committee.
The BRE Program aims to promote reinvestment and facilitate employment growth within the
community. The purpose of the program is to gather information about local business activity;
anticipate changes in a company's status, and work to retain the businesses that provide the
greatest positive economic impact.
Over the past year a master list was developed including 113 businesses and was reduced by
separating "wealth generating" business from retail, commercial and non-profit entities, resulting
in 28 identified businesses that can potentially create the greatest positive economic impact in the
city. Wealth generators create a new product or service that is sold into the market place unlike
recyclers that re -sell the product such as a retailor. Typical generators are manufacturers,
engineering or technical in nature. These businesses facilitate livable wage jobs that allow
residents to support local businesses and participate in community activities, support and
maintain tax base to generate revenue and increase the economic vitality of the City.
The draft BRE program is based on development of a partnership with the City bringing
resources that assist in facilitating public purposes such as; provide important information related
to infrastructure and transportation improvements that impact local businesses, act as a connector
to other government programs from the State of Minnesota and Anoka County, and can
communicate to businesses about local issues that affect their operations.
Visitation led by a member of the City Council and another city employee is the primary way to
establish a relationship with local businesses. The City should be prepared with a number of
resources. A simple handout can link businesses to a variety of programs both local and through
economic development partners such as the State of Minnesota and Anoka County that provide
business assistance programs and land availability.
As an extension of the BRE visits, Lino Lakes can build upon its existing communications by;
creating a business tab on the City's web site, add local businesses to City newsletter mailing,
develop an email blast system that can alert businesses issues or opportunities and dialogue with
the local area Chambers of Commerce. There is an opportunity to reach out to economic
development partners such as MN DEED, Greater MSP, Anoka County, Xcel Energy and others.
These organizations offer educational training, financial programs, technical assistance and a
variety of other business resources.
Ms. Barsness will be present at the meeting to discuss the plan.
EDAC CONSIDERATION
Staff is requesting EDAC comment regarding the draft plan.
ATTACHMENTS
1. Barsness Memo
2. NAICS Code Summary
3. Business by Revenue
4. Business by Employee Size
5. Business by Tax Base
W
Business Retention
and Expansion
Program Outline
Kirstin Barsness, Consultant
Summary
This document has been developed as a guide to establishing a Business Retention and Expansion (BRE) Program, a
key component of Lino Lakes' economic development efforts. Contained within, is the foundational research,
proposed BRE outline and organizational resources needed to effectively launch a Program. As with any endeavor,
success hinges on fluidity to react to changing circumstances and commitment to consistently, and actively implement
a BRE strategy annually.
Background
In 2014, the Economic Development Advisory Committee (EDAC) completed an Economic Development Plan that
identified the development and establishment of a BRE Program as the highest priority of its four areas of
opportunity. The Commission noted that of all activities, there is the greatest level of local control and decision
making associated with the development and implementation of a BRE Program.
Retention and expansion of key businesses is an important strategy in promoting continued economic growth. It is an
avenue by which communities promote reinvestment and facilitate employment growth. By establishing a Business
Retention and Expansion (BRE) Program, Lino Lakes can enhance its relationship with key existing businesses.
Additionally, it provides a key linkage between the growth of businesses in the Apollo Business Park and vacant land
along the Interstate 35E Corridor.
The BRE is an avenue to gather information about local business activity, anticipate changes in a company's status,
and work to retain the businesses that provide the greatest positive economic impact. This strategy is pivotal is
securing local re -investment. An established business will first look to expand in the area where they have already
made an investment, attracted quality workers and defined customers. It is the most efficient use of City resources to
focus on facilitating local business growth.
To begin the BRE process the EDAC directed City staff to begin evaluating the various Lino Lakes business lists.
Utilizing a variety of internal and external resources, a master list was developed. Initially, there were 113 verifiable
businesses included on the master list. This sample was reduced by separating "wealth generating" business from
retail, commercial and non-profit entities. The resulting 28 companies comprised the working list to be used for the
BRE Program. Numerous spreadsheets were constructed to better understand the local business composition. This
background can be found in the Exhibits of this report.
Business Retention and Expansion Program
Program Goals
The BRE process is an avenue for gathering information about local business activity, helps to anticipate changes in a
company's status, and works to retain the businesses that provide the greatest positive economic impact. It allows the
City of Lino Lakes to target specific businesses and direct limited municipal resources toward retaining and growing
these existing companies. Retention of key companies is a focal point of the City's economic growth strategy. As a
whole, a BRE Program impacts a community on a broad scale. It facilitates livable wage jobs that allow residents to
support local businesses and participate in community activities, supports and maintains tax base to generate revenues
and increase the economic vitality of the City.
Goals for a local BRE Program include:
Support business development that increases the tax base and adds quality jobs.
Retain quality businesses by creating a positive economic environment that supports and fosters business
expansion in the community.
Connect expanding businesses to local resources
Promote reinvestment in the community by focusing on pre -determined business and neighborhood
targets.
City's Role
As a public entity the City is regulated as to the type of assistance it can provide to local businesses. BRE is based on a
partnership and the City brings resources that assist in facilitating public purposes. Locally, the City can contribute to
fostering a strong BRE program.
The City can provide important information related to infrastructure and transportation improvements that
impact local businesses. Information can be related to construction concerns or financing options.
The City can act as a connector to other government programs from the State of Minnesota and Anoka
County. These agencies have economic development programs that provide financial assistance in the areas
of employee training, manufacturing or product development, and capital improvements such as building
construction.
The City can communicate to businesses about local issues that effect their operations.
Visitation is the primary way to establish a relationship with local businesses. Many times the local owner or plant
manager is the point of contact. In these instances it is imperative that the decision maker for the company is meeting
with a decision maker for the City. The company representative needs a high level of comfort that their question or
concern can be addressed by someone who is able to formulate change or follow up. It is recommended that a
member of the City Council participate in the BRE visits for this reason.
BRE Business Participants
The 113 original businesses compiled into the master list were evaluated according to their overall business category:
retail, commercial, manufacturing, technical, professional and non-profit. Direction was provided by the EDAC to
focus on the businesses that generate wealth and not those that recycle it. Wealth generators create a new product or
service that is sold into the market place unlike recyclers that re -sell the product such as a retailor. Typical
generators are manufacturers, engineering or technical in nature.
By setting aside the recyclers, the BRE List congealed at 28 companies.
Curtis 1000
Bramstedt Surgical Inc
Molin Concrete Products Co
Custom Manufacturing
Northern Wholesale Supply Inc
GNW Machine
PAR Aide Products Co
Contract Hardware Co Inc
Twin City Fab
Rice Industries Inc
Teknapack
Hammerheart Brewing Co
Twin City Powder Coating
Mountain Machine
Carroll Distributing & Constr
Lakes Mechanical
M C Metal Fab
Saberpack Inc
Underground Tools
Udor USA Inc
Marmon/Keystone LLC
Composites One LLC
Boe Ornamental Iron Inc
Interplastic Corp
Integrated Medical Tech USA
Nol Tec Systems Inc
Pathfinders Systems Inc
Sterling Plastics
City staff and consultant verified the validity of the listings and then sorted the businesses according to different
criteria. Copies of the various sorts can be found in the exhibit portion of this document.
By NAICS (North American Industry Classification System
Through this process, industry clusters within Lino Lakes were identified. These were then compared to
national growth trends. The information allowed for further separation of manufacturing,
warehousing/distribution, and technical businesses.
A separate handout on the key NAICS codes is attached to this memorandum.
It details the industry clusters and corresponding businesses within them. Within the table, the specific
companies that are in the fastest growing nationally, are identified.
Employee number
Businesses were ranked from largest to smallest number of employees. Interesting when compared to
company revenues. There are businesses with a modest number of employees and significant revenues.
• Revenues
Companies were ordered from highest sales volume levels to lowest.
• Tax Base
Each company's parcel identification number was researched and their taxable market value identified. This
information is used to determine the largest tax payers in the City.
Program Structure
Visitation
The primary outcome of a Business Retention and Expansion Program is to connect the local government and local
businesses in a mutually beneficial way. Visitation is an excellent way to establish dialogue and build a relationship. It
provides for the exchange of information in an informal setting that helps to ease both parties with their respective
roles in the partnership.
Outcomes for a visit are broadly defined. The goal is not to verify all the technical aspects of a business that can be
accessed online, through their annual reports or in business databases. Information shared should be focuses on their
operation in Lino Lakes and any issues that are a potential barrier to expanding in the community. A sample BRE
questionnaire is included in the exhibits as a reference.
Lino Lakes, like the majority of municipalities, has limited resources in both staff and time. A successful BRE program
grows from years of thoughtful implementation. For Lino Lakes a recommended format for visits would be:
Utilization of Community Development Staff and interns to schedule visitation meetings.
Visitation team should consist of no less than two individuals and no more than three. One person is the
designated scribe and the other the interviewer. A member of city staff and the City Council is optimal.
This represents a decision maker and the person who can research and follow up on questions or issues.
Limit the number of visitations to no more than 7 per year. This allows for adequate time in scheduling and
the corresponding follow thru needed. Visits can be lumped together or spread out according to what
works best for visitation team members.
Coordinate visits according to industry cluster (NAICS Code). By clustering industry visits, the City will be
able to more easily identify common threads in related businesses. For example if a number of similar
businesses are having difficulty recruiting a certain type of worker, the City may be able to access a
customized training grant through the State of Minnesota for them to share in.
Business Resources
Preparation is imperative. Businesses are traditionally skeptical in government that is "there to help." In order to
offset this natural inclination, the City can be prepared with a number of resources. A simple handout can link
businesses to a variety of programs both local and through economic development partners such as the State of
Minnesota and Anoka County.
Essential information to have available at all time:
Business Assistance Programs
A detailed list of programs offered by Lino Lakes, MN DEED, Anoka County and other regional economic
development agencies. Information includes where to access funds for customized job training, land
acquisition, business construction, equipment financing, energy improvements, etc.
Land availability in Lino Lakes including parcel size, sale price, infrastructure availability and contact.
General Outreach
BRE visits are geared toward specific businesses that offer the opportunity for future reinvestment. However, the
creation of a healthy communication system is paramount to fostering a strong and vital business community, which
includes all Lino Lakes companies. Simple strategies that are easily implemented can make a positive impact.
As an extension of the BRE visits, Lino Lakes can build upon its existing communications. Ideas for consideration:
1. Creating a Business tab on the City's web site to direct traffic to available business assistance programs,
economic development partners pages, development opportunities, new ordinance changes, transportation
or road construct concerns, etc.
2. Add local businesses to City Newsletter mailing and have a section specified for businesses news. Highlight a
local business in this area.
3. Develop an email blast system that can alert businesses issues or opportunities such as training or chamber
events.
4. Dialogue with the local area Chambers of Commerce about outreach and how the City may use their
resources.
Partners
Leverage is an important component of a successful program. Once the BRE program has been authorized, Lino
Lakes needs to reach out to its economic development partners such as MN DEED, Greater MSP, Anoka County,
Xcel Energy and others. These organizations offer educational training, financial programs, technical assistance and a
variety of other business resources. Connectivity for assisting local businesses strengthens the entire community.
As programs or technical expertise is identified, it can be included as a resource for local businesses. This is a way for
Lino Lakes to enhance how the City facilitates business retention.
Budget
The proposed Business Retention and Expansion Program draws on financial resources the City currently has in
place. It does require the allocation of staff time and a commitment to the long term implementation of the visitation
and outreach components. When instances occur and materials need development or expertise is required to help
facilitate an expansion, the City should reach out to its development partners. In many cases, they can help with a
portion of the financial costs associated with a project. Partnership is the pivotal point of accomplishing any economic
development effort.
Exhibits
City of Lino Lakes Business Retention Survey
Company Information
Company
Contact Name:
Phone Number:
Contact(s)
E-Mail:
Name of Person Interviewed: Title:
Name of Interviewer(s): Date of Visit:
1. Please tell us about your business and any challenges you have had or are currently facing.
2. What matters most to you when considering a community for your business location?
3. What advantages does a Lino Lakes location provide to your company?
4. Are there any obstacles to Lino Lakes as a business location? Do you have ideas on how the City can work with
you to resolve these and help your company remain competitive?
5. On a scale of Ito 10,with 10 being high; How likely is it you would recommend Lino lakes as a business location
to a friend or colleague? Why?
6. Do you have any other comments you would like to share?
Notes:
Lino Lakes BRE
INTERNAL USE ONLY
Business Name: Contact:
Date:
Additional Information Requested by Business
❑ Fixed Asset Financing ❑ Working Capital Financing
❑ Workforce Recruitment ❑ Workforce Training
❑ Available Land ❑ Available Space
❑ Technology Assistance ❑ Import/Export Assistance
❑ Small Business Loans ❑ State Development Programs
❑ Transit/Transportation ❑ Marketing Assistance
❑ Other:
Local government business concerns expressed (to be completed by
visitation team)
1.
2.
Follow up referred to
❑ Administration ❑
❑ Public Works ❑
Referred by:
Followed up by:
Community Development ❑ Finance
Public Safety ❑ Parks
Date:
Date:
Organized by NAICS Code
Company Name
NAICS Code
Primary NAICS Description
Hammerheart Brewing Co
208201
Brewers (Mfrs)
Boe Ornamental Iron Inc**
238910
Site Preparation Contractors
Teknapack
322121
Paper (except Newsprint) Mills
Saberpack Inc
322220
Coated & Treated Paper Manufacturing
Curtis 1000
323111
Commercial Printing (Except Screen & Books)
Interplastic Corp
325211
Plastics & Resin Manufacturing
Mountain Machine
326199
All Other Plastics Product Manufacturing
Lakes Mechanical
326199
All Other Plastics Product Manufacturing
Molin Concrete Products Co
327390
Other Concrete Product Manufacturing
Carroll Distributing & Constr
327390
Other Concrete Product Manufacturing
Underground Tools
333131
Drilling, Mining Underground Equip Manufacturing
Twin City Fab
332312
Fabricated Structural Metal Manufacturing
GNW Machine
332710
Machine Shops
Twin City Powder Coating
332813
Electroplating, Plating, Polishing, Anodizing, and
Coloring
Custom Manufacturing
333511
Industrial Mold Manufacturing
Bramstedt Surgical Inc
339113
Surgical & Medical Instrument Manufacturing
Integrated Medical Tech USA
339113
Surgical & Medical Instrument Manufacturing
Composites One LLC**
423310
Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslrs
Marmon/Keystone LLC**
423320
Metal Service Ctrs & Other Metal Merchant Whls
Contract Hardware Co Inc
423710
Hardware Merchant Wholesalers
Rice Industries Inc
423830
Industrial Machinery & Equipment Merchant Whlsrs
M C Metal Fab
423830
Industrial Machinery & Equipment Merchant Whlsrs
Udor USA Inc
423830
Industrial Machinery & Equipment Merchant Whlsrs
Nol Tec Systems Inc
423830
Industrial Machinery & Equipment Merchant Whlsrs
PAR Aide Products Co
423910
Sporting & Recreational Goods/Supls Mrchnt Whlsrs
Sterling Plastics
424610
Plastics Materials and Basic Forms and Shapes
Merchant Wholesalers
Northern Wholesale Supply Inc
441210
Recreational Vehicle Dealer
Pathfinders Systems Inc**
541511
Custom Computer Programming Services
** In the fastest growing US Industies (based on past 12 months) Source: Sage Works
Organized by Revenue
Company Name
Sales Volume
Primary NAICS Description
PAR Aide Products Co
$70,024,000
Sporting & Recreational Goods/Supls Mrchnt Whlsrs
Contract Hardware Co Inc
$53,240,000
Hardware Merchant Wholesalers
Bramstedt Surgical Inc
$50,339,000
Surgical & Medical Instrument Manufacturing
Curtis 1000
$30,068,000
Commercial Printing (Except Screen & Books)
Rice Industries Inc
$28,303,000
Industrial Machinery & Equipment Merchant Whlsrs
Northern Wholesale Supply Inc
$24,916,000
Recreational Vehicle Dealer
M C Metal Fab
$23,286,000
Industrial Machinery & Equipment Merchant Whlsrs
Udor USA Inc
$21,227,000
Industrial Machinery & Equipment Merchant Whlsrs
Marmon/Keystone LLC
$20,661,000
Metal Service Ctrs & Other Metal Merchant Whls
Molin Concrete Products Co
$19,250,000
Other Concrete Product Manufacturing
Carroll Distributing & Constr
$11,629,000
Other Concrete Product Manufacturing
Custom Manufacturing
$10,818,000
Industrial Mold Manufacturing
Hammerheart Brewing Co
$10,633,000
Brewers (Mfrs)
Composites One LLC
$9,216,000
Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslrs
Nol Tec Systems Inc
$7,075,000
Industrial Machinery & Equipment Merchant Whlsrs
Interplastic Corp
$6,938,000
Plastics & Resin Manufacturing
GNW Machine
$6,427,000
Machine Shops
Twin City Fab
$3,641,000
Fabricated Structural Metal Manufacturing
Teknapack
$3,000,000
Paper (except Newsprint) Mills
Twin City Powder Coating
$2,835,000
Electroplating, Plating, Polishing, Anodizing, and Coloring
Mountain Machine
$2,590,000
All Other Plastics Product Manufacturing
Lakes Mechanical
$2,354,000
All Other Plastics Product Manufacturing
Boe Ornamental Iron Inc
$1,560,000
Site Preparation Contractors
Underground Tools
$1,510,000
Drilling, Mining Underground Equip Manufacturing
Integrated Medical Tech USA
$1,011,000
Surgical & Medical Instrument Manufacturing
Saberpack Inc
$235,000
Coated & Treated Paper Manufacturing
Pathfinders Systems Inc
$200,000
Custom Computer Programming Services
Sterling Plastics
Plastics Materials and Basic Forms and Shapes
Merchant Wholesalers
Organized by Largest Tax Base
Company Name
PIN
Market Value
Northern Wholesale Supply Inc243122430011
5,256,200
PAR Aide Products Co
243122430011
Curtis 1000
243122140002
5,019,900
Molin Concrete Products Co
083122330003
4,400,700
Marmon/Keystone LLC
183122420007
3,748,300
GNW Machine
243122430013
2,059,700
Nol Tec Systems Inc
173122230014
1,529,900
Interplastic Corp
183122410016
1,246,400
Twin City Fab
183122420006
1,080,000
Twin City Powder Coating
173122210030
1,005,700
Integrated Medical Tech USA
173122210030
Contract Hardware Co Inc
183122410010
971,900
Sterling Plastics
183122410006
884,600
Composites One LLC
183122410006
Mountain Machine
183122410004
878,700
Teknapack
173122220045
852,500
Lakes Mechanical
173122220045
Saberpack Inc
173122220045
M C Metal Fab
173122210028
738,000
Pathfinders Systems Inc
173122210028
Bramstedt Surgical Inc
173122210028
738,000
Rice Industries Inc
173122230020
598,800
Carroll Distributing & Constr
173122220011
571,500
Custom Manufacturing
173122220008
451,700
Udor USA Inc
173122220033
434,100
Boe Ornamental Iron Inc
173122220022
336,800
Organized
by Employee Size
Company Name
Employee Size
Primary NAICS Description
Curtis 1000
200
Commercial Printing (Except Screen & Books)
Bramstedt Surgical Inc
199
Surgical & Medical Instrument Manufacturing
Molin Concrete Products Co
100
Other Concrete Product Manufacturing
Custom Manufacturing
80
Industrial Mold Manufacturing
Northern Wholesale Supply Inc
60
Recreational Vehicle Dealer
GNW Machine
40
Machine Shops
PAR Aide Products Co
30
Sporting & Recreational Goods/Supls Mrchnt Whlsrs
Contract Hardware Co Inc
23
Hardware Merchant Wholesalers
Twin City Fab
14
Fabricated Structural Metal Manufacturing
Teknapack
12
Paper (except Newsprint) Mills
Twin City Powder Coating
12
Electroplating, Plating, Polishing, Anodizing, and Coloring
Hammerheart Brewing Co
12
Brewers (Mfrs)
Rice Industries Inc
12
Industrial Machinery & Equipment Merchant Whlsrs
Mountain Machine
11
All Other Plastics Product Manufacturing
Saberpack Inc
10
Coated & Treated Paper Manufacturing
Lakes Mechanical
10
All Other Plastics Product Manufacturing
Carroll Distributing & Constr
10
Other Concrete Product Manufacturing
M C Metal Fab
10
Industrial Machinery & Equipment Merchant Whlsrs
Underground Tools
10
Drilling, Mining Underground Equip Manufacturing
Udor USA Inc
9
Industrial Machinery & Equipment Merchant Whlsrs
Marmon/Keystone LLC
8
Metal Service Ctrs & Other Metal Merchant Whls
Composites One LLC
7
Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslrs
Boe Ornamental Iron Inc
6
Site Preparation Contractors
Interplastic Corp
6
Plastics & Resin Manufacturing
Integrated Medical Tech USA
4
Surgical & Medical Instrument Manufacturing
Not Tec Systems Inc
3
Industrial Machinery & Equipment Merchant Whlsrs
Pathfinders Systems Inc
2
Custom Computer Programming Services
Sterling Plastics
Plastics Materials and Basic Forms and Shapes
Merchant Wholesalers
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3B
STAFF ORIGINATOR: Michael Grochala
EDAC MEETING DATE: June 2, 2016
REQUEST: Consideration of Business Subsidy Criteria
BACKGROUND
Before awarding any "business subsidy", such as financial assistance through the use of Tax
Abatement or Tax Increment Financing the City is required to adopt criteria for regarding such
subsidies. Business subsidy criteria was originally adopted in 2001 and revised in 2003.
The criteria are intended to set minimum requirements which recipients must meet to be eligible
to receive business subsidies. All business subsidy requests must comply with the State's
Business Subsidy Act. A business subsidy must meet a public purpose such as increasing the tax
base. The requirements must include specific wage floor for the wages to be paid for jobs
created.
Many of the wording changes are minor language updates such as adding EDA to existing
fragments and complying with updated MN Statutes. In the Lino Lakes Business Subsidy
Criteria, under Section 3.02 (c) Jobs and Wages, there should be a discussion on the minimum
number of jobs a recipient is required to create.
The majority of changes to the criteria include reference to both the City's Economic
Development Authority (EDA) and the Business Subsidy Act. Section 3.02 was modified to
establish a minimum job creation of five (5) jobs. This provision may be waived if, after a
public hearing, it is determined that job creation or retention is not part of the public purpose of
the subsidy.
Both the Lino Lakes EDA and the City Council will hold a public hearing on Monday, June 13,
2016 and consider adoption of the proposed amendment.
EDAC CONSIDERATION
Staff is requesting EDAC discussion and recommendation regarding the proposed business
subsidy changes.
ATTACHMENTS
1. Redline Subsidy Criteria
2. MN Statutes Section 116J.993-995
Exhibit CITY OF LINO LAKES
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
BUSINESS SUBSIDY CRITERIA
(Revised June 23, 200-3 .2016)
Section 1. Purpose; Statutory Compliance
1.01 The purpose of this document is to establish the criteria to be considered by the
e4yCity of Lino Lakes (the "City" and the Lino Lakes Economic Development
Authority (the "EDA") in processing, evaluating and reviewing requests for
business subsidies. It is the intent of the City and the EDA in adopting these revised
criteria to comply with Minnesota Statutes, Sections 116J.993 through 116J.995
(the '"`Business Subsidy Act :). The City and the EDA hereby adopts the
definitions contained in the Business Subsidy Act for application in the criteria.
1.02. Business subsidy criteria were adopted by the City on July 23, 2004-2001, revised
on June 23, 2003 and are hereby revise''. The City further revised. The Board
of the EDA adopted the revised business subsidy criteria on the date hereof. The
City and the EDA have the option to amend these criteria again in the future if
doing so is determined necessary or appropriate. Amendments to these criteria are
subject to the public hearing requirements of the Business Subsidy Act.
1.03. These criteria are intended to set specific minimum requirements which recipients
must meet to be eligible to receive business subsidies. TheNeither the City nor the
EDA will adopt business subsidy criteria on a case by case basis.
1.04. In accordance with the Business Subsidy Act, all business subsidy requests must
comply with the Business Subsidy Act and other applicable Minnesota statutes.
The City's and the EDA's ability to grant business subsidies is subject to the
limitations established in the Business Subsidy Act.
Section 2. Goals, Objectives, and Requirements
2.01 It is the City's and the EDA's intent to advance the following goals and objectives
in granting business subsidies:
(a) Projects must be consistent with Line Lakes'City's comprehensive plan
and any other similar plan or guide for development of the community.
(b) Business subsidies will not be provided €erto projects which have the
financial feasibility to proceed without a public subsidy.
2.02 When applying for a business subsidy, potential
recipients will be required to provide such studies, reports, appraisals, financial
information or other data as may be requested by the City or the EDA prior to
consideration of a request for a business subsidy.
uun2ccc.,i
Error! Bookmark not defined.
2-.0-22.03 Business subsidies must be justified by evidence that the project cannot
proceed without the benefit of the subsidy. If tax increment financing is used to
grant a subsidy, the recipient must demonstrate compliance with all statutory
requirements of the TIF Act, including the 'but for'-' test, if applicable, and any
TIF policy adopted by the City or the EDA. The recipient will be required to
provide all documentation necessary for the City or the EDA to make the requisite
ftindingsfindinys under the TIF Act and the Business Subsidy Act.
2-.032.04 Recipients will be required to enter into an agreement with the City or the
EDA which is consistent with statutory requirements and which contains
measurable, specific and tangible goals. The agreement must include a
commitment to remain in business in Lino Lakes for a minimum of five years after
the benefit date (as defined in the Business Subsidy Act), benefit date means the
date the item or work paid for with the business subsidy is placed in service), unless
waived by the City or the EDA, and a requirement to comply with the specific job
and wage goals established for the project, if any.
Section 3. Business Subsidy Criteria
3.01 The City and the EDA recognize that every proposal is unique. Nothing in these
criteria shall be deemed to be an entitlement or to establish a contractual right to a
subsidy. The City and the EDA may modify these criteria from time to time and
reserves the right to evaluate each project on its individual merits. The City and the
EDA may deviate from these criteria by documenting in writing the reason for the
deviation and attaching a copy of the document to its next annual report to the
Minnesota state agency charged with administration thereof.
3.02 The following criteria shall be utilized in evaluating a request for a business
subsidy:
(a) Public purpose. A business subsidy must meet a public purpose, including
but not limited to increasing the tax base. Job retention may only be
considered a public purpose if the loss of jobs is specific and demonstrable.
(b) Increase in tax base. While an increase in the tax base cannot be the sole
rounds for granting a subsidy, the City besand the EDA believe it is a
necessary condition for any subsidy.
(c) Jobs and Wages. In instances in which job creation is determined to be a
goal, the City and the EDA will review all of the unique circumstances
surrounding the proposed development to determine how many jobs should
be required in exchange for the proposed subsidy. If job creation is
determined to be one of the main goals of a proposed development, it is the
City's and the EDA's intent that the recipient create the maximum number
of livable wage jobs at the site.. with no fewer than 5 jobs. This may include
jobs to be retained but only if retention is specific and demonstrable. The
2
479195v1
job and wage goal must be attained within two years of the benefit date as
defined in the Business Subsidy Actl. The City and the EDA may, after a
public hearing, extend for up to one year the period for meeting the job and
wage goal. Qualifying jobs are those which pay, at a minimum, 110 percent
of the federal minimum wage, plus benefits. Any deviation from the
established wage level must be documented in conformity with the
requirements set forth in the Business Subsidy Act. If the City or the EDA,
following a public hearing, determines that job creation or retention is not
part of the public purpose of the subsidy, the wage and job goal may be set
at zero.
(d) Economic Development. Projects should promote one or more of the
following:
1. Encourage economic and commercial diversity within the
community;
2. Contribute to the establishment of a critical mass of commercial
development within an area;
3. Increase the range of goods and services available or encourage fast
growing or other desirable businesses to locate or expand within the
community;
4. Promote redevelopment objectives and removal of blight, including
pollution cleanup;
5. Promote the retention or adaptive reuse of buildings of historical or
architectural significance;
6. Promote additional or spin-off development within the community;
of
7. Development of safe and affordable housing: or
8. Encourage full utilization of existing or planned infrastructure
improvements.
Section 4. Minimum Reaukements
.�
.. . ..............
Compliance and
Reporting Requirements
U14B 232656y 3
TLN 1 A�z1 77
479195v1
5.01 Any subsidy granted by the City or the EDA will be subject to the requirement of a
public hearing; if necessary.
5.02 It will be necessary for both the recipient and the City or the EDA to comply with
reporting and monitoring requirements of the Business Subsidy Act.
5.03 A recipient may be authorized to move from the Citv within five years
of the benefit date (as defined in the Business Subsidy Act) only if, after a public
hearing, the City or EDA approves the request to move. The City or EDA may
discontinue the subsidy if the recipient moves from the City.
U14B 232656y 4
TLN 1 A�z1 77
479195v1
Document comparison by Workshare Compare on Tuesday, May 03, 2016
12.03:41 PM
Input:
Document
Powerpocs-.//DOCSOPEN/479192/1
1 ID
Descriptio
DOCSOPEN-#479192-v1-Lino_Lakes_2003_Business_Subsidy_Crite
n
ria
Document
Powerpocs://DOCSOPEN/479195/1
21D
Descriptio
DOCSOPEN-#479195-v1-2016 Revised Business Subsidy_Criteria
n
— — —
Rendering
Standard
set
Legend:
Insertion
Dian
Moved from
Moved to
Style change
Format change
11—'ad aolot;,,a
Inserted cell
Deleted cell
Moved cell
Split/Merged cell
Padding cell
Statistics:
Count
Insertions
58
Deletions
33
Moved from
0
Moved to
0
Style change
0
Format changed
0
Total changes 1 91
MINNESOTA STATUTES 2015 1161993
116J.993 DEFINITIONS.
Subdivision 1. Scope. For the purposes of sections 1161993 to 1161995, the terms defined in this
section have the meanings given them.
Subd. 2. Benefit date. "Benefit date" means the date that the recipient receives the business subsidy. If
the business subsidy involves the purchase, lease, or donation of physical equipment, then the benefit date
begins when the recipient puts the equipment into service. If the business subsidy is for improvements to
property, then the benefit date refers to the earliest date of either:
(1) when the improvements are finished for the entire project; or
(2) when a business occupies the property. If a business occupies the property and the subsidy grantor
expects that other businesses will also occupy the same property, the grantor may assign a separate benefit
date for each business when it first occupies the property.
Subd. 3. Business subsidy. "Business subsidy" or "subsidy" means a state or local government agency
grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates
below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any
guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government
facilities given to a business.
The following forms of financial assistance are not a business subsidy:
(1) a business subsidy of less than $150,000;
(2) assistance that is generally available to all businesses or to a general class of similar businesses, such
as a line of business, size, location, or similar general criteria;
(3) public improvements to buildings or lands owned by the state or local government that serve a
public purpose and do not principally benefit a single business or defined group of businesses at the time
the improvements are made;
(4) redevelopment property polluted by contaminants as defined in section 1161552, subdivision 3;
(5) assistance provided for the sole purpose of renovating old or decaying building stock or bringing it
up to code and assistance provided for designated historic preservation districts, provided that the assistance
is equal to or less than 50 percent of the total cost;
(6) assistance to provide job readiness and training services if the sole purpose of the assistance is to
provide those services;
(7) assistance for housing;
(8) assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance subdistrict as defined under section 469.174, subdivision 23;
(9) assistance for energy conservation;
(10) tax reductions resulting from conformity with federal tax law;
(11) workers' compensation and unemployment insurance;
(12) benefits derived from regulation;
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
1161993 MINNESOTA STATUTES 2015 2
(13) indirect benefits derived from assistance to educational institutions;
(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code
of 1986, as amended through December 31, 1999;
(15) assistance for a collaboration between a Minnesota higher education institution and a business;
(16) assistance for a tax increment financing soils condition district as defined under section 469.174,
subdivision 19;
(17) redevelopment when the recipient's investment in the purchase of the site and in site preparation is
70 percent or more of the assessor's current year's estimated market value;
(18) general changes in tax increment financing law and other general tax law changes of a principally
technical nature;
(19) federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) funds from dock and wharf bonds issued by a seaway port authority;
(21) business loans and loan guarantees of $150,000 or less;
(22) federal loan funds provided through the United States Department of Commerce, Economic De-
velopment Administration; and
(23) property tax abatements granted under section 469.1813 to property that is subject to valuation
under Minnesota Rules, chapter 8100.
Subd. 4. Grantor. "Grantor" means any state or local government agency with the authority to grant
a business subsidy.
Subd. 5. Local government agency. "Local government agency" includes a statutory or home rule
charter city, housing and redevelopment authority, town, county, port authority, economic development
authority, community development agency, nonprofit entity created by a local government agency, or any
other entity created by or authorized by a local government with authority to provide business subsidies.
Subd. 6. Recipient. "Recipient" means any for -profit or nonprofit business entity that receives a business
subsidy. Only nonprofit entities with at least 100 full-time equivalent positions and with a ratio of highest
to lowest paid employee, that exceeds ten to one, determined on the basis of full-time equivalent positions,
are included in this definition.
Subd. 6a. Residence. "Residence" means the place where an individual has established a permanent
home from which the individual has no present intention of moving.
Subd. 7. State government agency. "State government agency" means any state agency that has the
authority to award business subsidies.
History: 1999 c 243 art 12 s 1; 2000 c 482 s 1; 2004 c 206 s 52; ISp2005 c 3 art 7 s 1; 2006 c 259
art 4 s 1; 2008 c 366 art 5 s 2
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
MINNESOTA STATUTES 2015 116J.994
1161994 REGULATING LOCAL AND STATE BUSINESS SUBSIDIES.
Subdivision 1. Public purpose. A business subsidy must meet a public purpose which may include, but
may not be limited to, increasing the tax base. Job retention may only be used as a public purpose in cases
where job loss is specific and demonstrable.
Subd. 2. Developing a set of criteria. A business subsidy may not be granted until the grantor has
adopted criteria after a public hearing for awarding business subsidies that comply with this section. The
criteria may not be adopted on a case -by -case basis. The criteria must set specific minimum requirements
that recipients must meet in order to be eligible to receive business subsidies. The criteria must include a
specific wage floor for the wages to be paid for the jobs created. The wage floor may be stated as a specific
dollar amount or may be stated as a formula that will generate a specific dollar amount. A grantor may
deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of
the document to its next annual report to the department. The commissioner of employment and economic
development may assist local government agencies in developing criteria. A copy of the criteria must be
submitted to the Department of Employment and Economic Development along with the first annual report
following May 15, 2000, or with the first annual report after it has adopted criteria, whichever is earlier.
Notwithstanding section 116J.993, subdivision 3, clauses (1) and (21), for the purpose of this subdivision,
"business subsidies" as defined under section 116J.993 includes the following forms of financial assistance:
(1) a business subsidy of $25,000 or more; and
(2) business loans and guarantees of $75,000 or more.
Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with the grantor of
the subsidy that includes:
(1) a description of the subsidy, including the amount and type of subsidy, and type of district if the
subsidy is tax increment financing;
(2) a statement of the public purposes for the subsidy;
(3) measurable, specific, and tangible goals for the subsidy;
(4) a description of the financial obligation of the recipient if the goals are not met;
(5) a statement of why the subsidy is needed;
(6) a commitment to continue operations in the jurisdiction where the subsidy is used for at least five
years after the benefit date;
(7) the name and address of the parent corporation of the recipient, if any; and
(8) a list of all financial assistance by all grantors for the project.
(b) Business subsidies in the form of grants must be structured as forgivable loans. For other types of
business subsidies, the agreement must state the fair market value of the subsidy to the recipient, including
the value of conveying property at less than a fair market price, or other in -kind benefits to the recipient.
(c) If a business subsidy benefits more than one recipient, the grantor must assign a proportion of the
business subsidy to each recipient that signs a subsidy agreement. The proportion assessed to each recipient
must reflect a reasonable estimate of the recipient's share of the total benefits of the project.
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
1161994 MINNESOTA STATUTES 2015 2
(d) The state or local government agency and the recipient must both sign the subsidy agreement and,
if the grantor is a local government agency, the agreement must be approved by the local elected governing
body, except for the St. Paul Port Authority and a seaway port authority.
(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be authorized to move
from the jurisdiction where the subsidy is used within the five-year period after the benefit date if, after a
public hearing, the grantor approves the recipient's request to move. For the purpose of this paragraph, if
the grantor is a state government agency other than the Iron Range Resources and Rehabilitation Board,
"jurisdiction" means a city or township.
Subd. 4. Wage and job goals. The subsidy agreement, in addition to any other goals, must include: (1)
goals for the number of jobs created, which may include separate goals for the number of part-time or full-
time jobs, or, in cases where job loss is specific and demonstrable, goals for the number of jobs retained;
(2) wage goals for any jobs created or retained; and (3) wage goals for any jobs to be enhanced through
increased wages. After a public hearing, if the creation or retention of jobs is determined not to be a goal,
the wage and job goals may be set at zero. The goals for the number of jobs to be created or retained must
result in job creation or retention by the recipient within the granting jurisdiction overall.
In addition to other specific goal time frames, the wage and job goals must contain specific goals to be
attained within two years of the benefit date.
Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds $500,000 for
a state government grantor and $150,000 for a local government grantor, the grantor must provide public
notice and a hearing on the subsidy. A public hearing and notice under this subdivision is not required if a
hearing and notice on the subsidy is otherwise required by law.
(b) Public notice of a proposed business subsidy under this subdivision by a state government grantor,
other than the Iron Range Resources and Rehabilitation Board, must be published in the State Register.
Public notice of a proposed business subsidy under this subdivision by a local government grantor or the Iron
Range Resources and Rehabilitation Board must be published in a local newspaper of general circulation.
The public notice must identify the location at which information about the business subsidy, including a
summary of the terms of the subsidy, is available. Published notice should be sufficiently conspicuous in size
and placement to distinguish the notice from the surrounding text. The grantor must make the information
available in printed paper copies and, if possible, on the Internet. The government agency must provide at
least a ten-day notice for the public hearing.
(c) The public notice must include the date, time, and place of the hearing.
(d) The public hearing by a state government grantor other than the Iron Range Resources and Reha-
bilitation Board must be held in St. Paul.
(e) If more than one nonstate grantor provides a business subsidy to the same recipient, the nonstate
grantors may designate one nonstate grantor to hold a single public hearing regarding the business subsidies
provided by all nonstate grantors. For the purposes of this paragraph, "nonstate grantor" includes the iron
range resources and rehabilitation board.
(f) The public notice of any public meeting about a business subsidy agreement, including those required
by this subdivision and by subdivision 4, must include notice that a person with residence in or the owner
of taxable property in the granting jurisdiction may file a written complaint with the grantor if the grantor
fails to comply with sections 116J.993 to I I6J.995, and that no action may be filed against the grantor for
the failure to comply unless a written complaint is filed.
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
MINNESOTA STATUTES 2015 116J.994
Subd. 6. Failure to meet goals. (a) The subsidy agreement must specify the recipient's obligation if the
recipient does not fulfill the agreement. At a minimum, the agreement must require a recipient failing to meet
subsidy agreement goals to pay back the assistance plus interest to the grantor or, at the grantor's option,
to the account created under section 116J.551 provided that repayment may be prorated to reflect partial
fulfillment of goals. The interest rate must be set at no less than the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared by the Bureau of
Economic Analysis of the United States Department of Commerce for the 12-month period ending March
31 of the previous year. The grantor, after a public hearing, may extend for up to one year the period for
meeting the wage and job goals under subdivision 4 provided in a subsidy agreement. A grantor may extend
the period for meeting other goals under subdivision 3, paragraph (a), clause (3), by documenting in writing
the reason for the extension and attaching a copy of the document to its next annual report to the department.
(b) A recipient that fails to meet the terms of a subsidy agreement may not receive a business subsidy
from any grantor for a period of five years from the date of failure or until a recipient satisfies its repayment
obligation under this subdivision, whichever occurs first.
(c) Before a grantor signs a business subsidy agreement, the grantor must check with the compilation and
summary report required by this section to determine if the recipient is eligible to receive a business subsidy.
Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor the progress
by the recipient in achieving agreement goals.
(b) A recipient must provide information regarding goals and results for two years after the benefit date
or until the goals are met, whichever is later. If the goals are not met, the recipient must continue to provide
information on the subsidy until the subsidy is repaid. The information must be filed on forms developed by
the commissioner in cooperation with representatives of local government. Copies of the completed forms
must be sent to the local government agency that provided the subsidy or to the commissioner if the grantor
is a state agency. If the Iron Range Resources and Rehabilitation Board is the grantor, the copies must be
sent to the board. The report must include:
(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy is tax increment
financing;
(2) the hourly wage of each job created with separate bands of wages;
(3) the sum of the hourly wages and cost of health insurance provided by the employer with separate
bands of wages;
(4) the date the job and wage goals will be reached;
(5) a statement of goals identified in the subsidy agreement and an update on achievement of those goals;
(6) the location of the recipient prior to receiving the business subsidy;
(7) the number of employees who ceased to be employed by the recipient when the recipient relocated
to become eligible for the business subsidy;
(8) why the recipient did not complete the project outlined in the subsidy agreement at their previous
location, if the recipient was previously located at another site in Minnesota;
(9) the name and address of the parent corporation of the recipient, if any;
(10) a list of all financial assistance by all grantors for the project; and
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
1161994 MINNESOTA STATUTES 2015 4
(11) other information the commissioner may request.
A report must be filed no later than March 1 of each year for the previous year. The local agency and the
Iron Range Resources and Rehabilitation Board must forward copies of the reports received by recipients
to the commissioner by April 1.
(c) Financial assistance that is excluded from the definition of "business subsidy" by section 116J.993,
subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting requirements of this subdivision,
except that the report of the recipient must include instead:
(1) the type, public purpose, and amount of the financial assistance, and type of district if the assistance
is tax increment financing;
(2) progress towards meeting goals stated in the assistance agreement and the public purpose of the
assistance;
(3) if the agreement includes job creation, the hourly wage of each job created with separate bands of
wages;
(4) if the agreement includes job creation, the sum of the hourly wages and cost of health insurance
provided by the employer with separate bands of wages;
(5) the location of the recipient prior to receiving the assistance; and
(6) other information the grantor requests.
(d) If the recipient does not submit its report, the local government agency must mail the recipient a
warning within one week of the required filing date. If, after 14 days of the postmarked date of the warning,
the recipient fails to provide a report, the recipient must pay to the grantor a penalty of $100 for each
subsequent day until the report is filed. The maximum penalty shall not exceed $1,000.
Subd. 8. Reports by grantors. (a) Local government agencies of a local government with a population
of more than 2,500 and state government agencies, regardless of whether or not they have awarded any
business subsidies, must file a report by April 1 of each year with the commissioner. Local government
agencies of a local government with a population of 2,500 or less are exempt from filing this report if they
have not awarded a business subsidy in the past five years. The report must include a list of recipients that
did not complete the recipient report required under subdivision 7 and a list of recipients that have not met
their job and wage goals within two years and the steps being taken to bring them into compliance or to
recoup the subsidy.
If the commissioner has not received the report by April 1 from an entity required to report, the com-
missioner shall issue a warning to the government agency. If the commissioner has still not received the
report by June 1 of that same year from an entity required to report, then that government agency may not
award any business subsidies until the report has been filed.
(b) The report required under paragraph (a) is also required for financial assistance of $25,000 and
greater that is excluded from the definition of "business subsidy" by section 116J.993, subdivision 3,
clause (1), and of $75,000 and greater that is excluded from the definition of "business subsidy" by section
116J.993, subdivision 3, clause (21). The report for the financial assistance under this paragraph must be
completed within one year of the granting of the financial assistance. The report required for financial as-
sistance under this paragraph must include:
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
MINNESOTA STATUTES 2015 116J.994
(1) the name of the recipient, its organizational structure, its address and contact information, and its
industry sector;
(2) a description of the amount and use of the financial assistance and the total project budget, including
a list of all financial assistance by all grantors for the project and the private sources of financial assistance;
(3) the public purpose of the financial assistance, the job goals associated with both the financial as-
sistance and the total project in which the financial assistance is included, the hourly wage of each job
created, and the cost of health insurance provided by the employer;
(4) the date the project will be completed;
(5) the name and address of the parent corporation of the recipient, if any; and
(6) any other information the commissioner may request.
(c) Within one year of completing a report under paragraph (b), the local government agency must report
to the commissioner on progress in achieving the purposes and goals under paragraph (b), clause (3).
(d) The commissioner of employment and economic development must provide information on
reporting requirements to state and local government agencies.
Subd. 9. Compilation and summary report. The Department of Employment and Economic De-
velopment must publish a compilation and summary of the results of the reports for the previous two calendar
years by December 1 of 2004 and every other year thereafter. The reports of the government agencies to the
department and the compilation and summary report of the department must be made available to the public.
The commissioner must make copies of all business subsidy reports submitted by local and state granting
agencies available on the department's Web site by October 1 of the year in which they were submitted.
The commissioner must coordinate the production of reports so that useful comparisons across time
periods and across grantors can be made. The commissioner may add other information to the report as the
commissioner deems necessary to evaluate business subsidies. Among the information in the summary and
compilation report, the commissioner must include:
(1) total amount of subsidies awarded in each development region of the state;
(2) distribution of business subsidy amounts by size of the business subsidy;
(3) distribution of business subsidy amounts by time category;
(4) distribution of subsidies by type and by public purpose;
(5) percent of all business subsidies that reached their goals;
(6) percent of business subsidies that did not reach their goals by two years from the benefit date;
(7) total dollar amount of business subsidies that did not meet their goals after two years from the benefit
date;
(8) percent of subsidies that did not meet their goals and that did not receive repayment;
(9) list of recipients that have failed to meet the terms of a subsidy agreement in the past five years and
have not satisfied their repayment obligations;
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
1161994 MINNESOTA STATUTES 2015 6
(10) number of part-time and full-time jobs within separate bands of wages for the entire state and for
each development region of the state;
(11) benefits paid within separate bands of wages for the entire state and for each development region
of the state; and
(12) number of employees in the entire state and in each development region of the state who ceased to
be employed because their employers relocated to become eligible for a business subsidy.
Subd. 10. Compilation. The Department of Employment and Economic Development must publish a
compilation of granting agencies' criteria policies adopted in the previous two calendar years by December
1 of 2004 and every other year thereafter.
Subd. 11. Enforcement. (a) A person with residence in or an owner of taxable property located in the
jurisdiction of the grantor may bring an action for equitable relief arising out of the failure of the grantor
to comply with sections 116J.993 to 1161995. The court may award a prevailing party in an action under
this subdivision costs and reasonable attorney fees.
(b) Prior to bringing an action, the party must file a written complaint with the grantor stating the alleged
violation and proposing a remedy. The grantor has up to 30 days to reply to the complaint in writing and
may take action to comply with sections 116J.993 to 116J.995.
(c) The written complaint under this subdivision for failure to comply with subdivisions 1 to 5, must
be filed with the grantor within 180 days after approval of the subsidy agreement under subdivision 3,
paragraph (d). An action under this subdivision must be commenced within 30 days following receipt of the
grantor's reply, or within 180 days after approval of the subsidy agreement under subdivision 3, paragraph
(d), whichever is later.
History: 1999 c 243 art 12 s 2; 2000 c 482 s 2-11; 2001 c 7 s 28; 2003 c 128 art 13 s 24-26; ISp2003
c 4 s 1; 2004 c 206 s 24,25; ISp2005 c I art 4 s 23,24; ISp2005 c 3 art 7 s 2-5; 2008 c 366 art 5 s 3-5
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
MINNESOTA STATUTES 2015 1161995
116J.995 ECONOMIC GRANTS.
An appropriation rider in an appropriation to the Department of Employment and Economic De-
velopment that specifies that the appropriation be granted to a particular business or class of businesses
must contain a statement of the expected benefits associated with the grant. At a minimum, the statement
must include goals for the number of jobs created or enhanced, wages paid, and the tax revenue increases
due to the grant. The wage and job goals must contain specific goals to be attained within two years of the
benefit date. The statement must specify the recipient's obligation if the recipient does not attain the goals.
At a minimum, the statement must require a recipient failing to meet the job and wage goals to pay back
the assistance plus interest to the Department of Employment and Economic Development provided that
repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be set at no less than
the implicit price deflator as defined under section 116J.994, subdivision 6. The legislature, after a public
hearing, may extend for up to one year the period for meeting the goals provided in the statement.
History: 1999 c 243 art 12 s 3; 2000 c 482 s 12; 2001 c 7 s 29; 2003 c 128 art 13 s 27; 1 Sp2003 c 4 s I
Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3C
STAFF ORIGINATOR: Michael Grochala
EDAC MEETING DATE: June 02, 2016
REQUEST: Clearwater Creek Business Park- United Properties
Distribution Center
BACKGROUND
United Properties has submitted a request for rezoning to Planned Unit Development,
Development Stage Plan Approval and Preliminary Plat approval for the 56 acre Clearwater
Creek Business Park. The proposed plat includes one 30-acre lot for a proposed distribution
center and two outlots for future development. The Planning and Zoning board will be holding a
public hearing for the proposal on June 8, 2016.
Staff has been working with United Properties regarding construction of a
warehousing/distribution facility along 35E for the past six months. This has been previously
discussed with both EDAC and the Planning & Zoning board due to both its economic
development potential and zoning related site issues.
Based on revisions to the site plan the proposed distribution facility is approximately 402,552
square feet in area. The applicant is proposing to pursue a rezoning to Planned Unit
Development to allow for design flexibility related to the proposed storage of semi -trailers on the
site. By rotating the building (dock doors facing north/south) a number of zoning issues have
been addressed.
Development of the site will require the extension of 2 1 " Avenue, from Commerce Avenue to
approximately 2,100 feet south. Extension of the street includes the crossing of Clearwater
Creek and filling and mitigation of floodplain areas adjacent to the creek. 21" Avenue is planned
to be extended to Cedar Street, further to the south, in the Comprehensive Plan. The project
proposes to dedicate right of way for the entire length of the roadway.
The proposed project is valued at approximately $18,000,000. Due to costs associated with the
street extension, floodplain mitigation and necessary soil corrections, the developer is requesting
public assistance in the form of Tax Increment Financing (TIF). Staff is currently reviewing the
application and possible establishment of an Economic Development District. An Economic
Development District could provide for up to nine years of increment. A review and
recommendation regarding Tax Increment Financing will be brought to the committee for review
in July.
EDAC CONSIDERATION
Staff is requesting EDAC comments regarding the proposed development.
ATTACHMENTS
1. Project Area Map
2. Distribution Facility Site Plan
3. Exterior Building Rendering
C EARWAT R CREEK BUSINESS CENTER
SHEET INDEX
DRAWN BY: DESIGN BY:
A.G. A.G.
CHCKD BY: PROD. NO.
C.W.P. 16-1604
TITLE SHEET, NOTES & LEGEND
LINO LAKES, IVIN
Know what's below.
Cal before you dig.
LEGEND
pw
EXISTING OVERHEAD ELECTRIC
--E
EXISTING UNDERGROUND ELECTRIC
a a
EXISTING UNDERGROUND TELEPHONE
EXISTING UNDERGROUND CABLE
°TCS
EXISTING TRAFFIC CONTROL SIGN
GP
EXISTING GUARD POST
0
MBA
EXISTING MAIL BOX
EICBX
EXISTING CONTROL BOX
O PP
EXISTING UTILITY POLE
;o LP
EXISTING LIGHT POLE
EXISTING STORM SEWER
---
EXISTING WATER MAIN
— —
EXISTING SANITARY SEWER
Q
EXISTING STORM MANHOLE
g
EXISTING GATE VALVE
EXISTING HYDRANT
• EXISTING SANITARY SEWER MANHOLE
—930
—92828 ----- EXISTING CONTOUR
xg20gg EXISTING SPOT ELEVATION
—•—•—•—•— EXISTING FENCE
o- ——••—••— — -0 DELINEATED WETLAND EDGE
5L OIVc'P".(dM-40JhOYAiA OO V50W \�O1.9Z OV U MAVArM KYOVtr'
PROPOSED
WATER PIPE
PROPOSED
SANITARY SEWER PIPE
�>
PROPOSED
STORM SEWER PIPE
PROPOSED
DRAINTILE AND CLEAN —OUT
OD
PROPOSED
STORM MANHOLE
❑
PROPOSED
CATCH BASIN
0
PROPOSED
FLARED —END SECTION
AV
PROPOSED
GATE VALVE
PROPOSED
HYDRANT
QS
PROPOSED
SANITARY SEWER MANHOLE
928
PROPOSED
CONTOUR
930
X24.60
PROPOSED
SPOT ELEVATION
(GUTTERLINE, BITUMINOUS SURFACE, OR GROUND
SURFACE UNLESS OTHERWISE INDICATED)
PROPOSED
SILT FENCE
PROPOSED
DIRECTION OF DRAINAGE
PROPOSED
RIP —RAP
PROPOSED
INLET PROTECTION
El
PROPOSED
WETLAND BUFFER SIGNAGE
.._._._._......�
1! N Oryy��N f�
l
p .•' No 5'�':
...........................
PRODUCTION OFFICE,,MECH ROOM
o
SHIPPING OFFICE LL
PROPOSED BUILDING
FIRST FLOOR ELEVATION 912.00
PROPOSED BUILDING
402,552 S.F.
l
14+00 15+00 1
CO TITLE SHEET, NOTES & LEGEND
C1.1 GRADING, DRAINAGE & EROSION CONTROL PLAN
C1.2 GRADING, DRAINAGE & EROSION CONTROL PLAN
C2.1 UTILITY PLAN
C2.2 UTILITY PLAN
C3.1 PLAN PROFILE - 21 STAVE S
C3.2 PLAN PROFILE - 21 STAVE S
DETAILS
DETAILS
STORMWATER POLLUTION PREVENTION PLAN
STORMWATER POLLUTION PREVENTION PLAN
VICINITY MAP
---------- --ram-\�--�----
N Xn
r- rL_
r-
L_
E -
L_
O
r-
L O
� r-
L_
� r-
� r-
L_
TRASH
EMPLOYEE
ENTRY
- J -
�j
z \.
MONUMENT
SIGN r
3
18+ 19+00 20+00 21+ 0 22 00 00 24+ 25-
1
i
£ "ON
ONtll13M 53/1N3dONd N138N3U "d3NM0 _711.171N30 10 10 �"U3NM0
Z
t/ � MS ]]Hi AO t/ MS w
SllVll Vo
m
ORIGINAL DATE:
MAY 16, 2016
Z
O
H
a_
V
N
W
0
Z
O
N
W
m
W
Q
cc
W
z�JDy
Z p p ¢ w
g}aWz
a�gz-
=WaZLL
�G�-w0
QZ�aF
a
~OZON
�ZLU
LL
00com0
}W>aN
CaaW�
a (n
LU
aNWI
U
J
W
�
W
W
V
W
zLLI
Q
(l)
W
N
J
V
z
cl)
m
0
Z
J
I I4
W I
Y
� JQ�
oO� O
I
11 /
ry12 S• /
I �
53 �
Z
W
W
J
H
W
N
LU
H
PREPARED FOR:
UNITED
PROPERTIES
SITE PLANNING
& ENGINEERING
Z
J
PLOWE
ENGINEERING, INC.
6776 LAKE DRIVE
SUITE 110
LINO LAKES, MN 55014
PHONE: (651) 361-8210
FAX: (651) 361-8701
O :W/
Z
4
0 60 120
SCALE: 1" = 120'
CO
Filename: CLEARWA
J`S7
I— — — —
FUTURE EXTENSION``
FROM CUL—DE—SAC
D
(N
s �
n D
OZ
I
NORTH
z z
m m
Z
a m A O D
O Of) m
Omr DO
ODD 9m
� m
Ay
nN K_
z
op O
m m rn
A
a vl �
ZA A
O n
Z
� 5+
N �
c z
m
A 9 N m00 D COO -
J A Z �
02D
N goD
O .
D
mn D
D rl
y
D
• N r M
o �Zm
O �A
i OyU
Nyy _A T
N>ao ADII
mr
tNp
r z w
D oto N D
A om A n
N DO OC M
D no n
N O O z
� c
0
N
A
' O
9
--j m
0 C
c
mC
A
p m
D m
Z X
(n �
� m
m z
m N
m 0
Z
U
O
Z
0
z
C)
" I
"III m�
IQ' i
.I I I y
J . , 241 24' 2'
o
-------
ow r----------
o+
w
20• 40'
I
I
I I
1 i
II i
m
N
11
mil
zl
z �I
LJLJ LJLJ
I
m zz1
m
ry
z I
om
oD
�l
v
�
'
II
I
I
I I I
-
/
B
S
ILDING
TRACK
-
µ -
o
\•
1
om
z
nlA
z
,5'
PARKI
o" I
4G
- -I
_•
SETBACK
83'r0"
— — —
750'-0" 1
\�"
01
a %
\
-� o�\ ;Xo.
\ S
F
Rp
\
4
\ . `92 c�' a00 Ln
0,
\ �(` yN2 Ln OJ
` O
FJj��CJJ
\
\\\W
`\
�O AOo
N A OD\` O
N
W OD
\ \ \\ \N O W
00
��.
FUTURE ACCESS ROAD
I•
o
\`
\gym
-----------------------------
-
-------------------------------------------------------------------
37 PROOF OF TRAILER STORAGE
00
I\
1n
0
o
I
20 DOCKS-----i
i
I �
CO
p LAo Jo
I
I
l I Z
N I_ II m OJ
1 I
I
J CI
C4
1
m
LJLJ
JLJ
JLJ
LJLJ
LJLJ
LJLJ
LJLJ
LJLJ
60'
SPEED
BA
I
1
z
I
I I I
I I
I
I
-p'. 0 I
0 0
—
I
DN
—
1 9
Z
I
I I I
I I
o
c
A
l
NW
to
O
°
I�
O
>
A
p
Z
XI
czi
I;
I0
z
o
l
C)
0
15
P
0"
KING
—
I ?
i
i A
o
SE
BACK
—`,i — B IL� G
of S TBj K•
>
�zc�ill
A
OC A A
zm _ I_ _ _I I_ - O-
ozmZ
A 60' SPEED BA ;l
mz 1 1 A r� rrr� r�rrrr r�r�r� r—r,rr I—'] --L— r 7-7
I p
O of m
o �1
W . m 40' 25'
CCD l l 241 n!l 4' 20•"
C
N O
• A
p GATE
L V
L----------------------
� PROPOSED PROPERTY'ULINENE
A
0
I
30 DOCKS
m m n
o
A A �
O
<D O
.0
z A
i �
4d
45 TRAILERS
G
D7 A
No
y
l
o SHARED ACCESS ROAD J :JN /
- J
/
Cli
rri
/ // /
Z 20TH AVE N z !y `r0• // /
.10
9`rF ��;
lZo / J A
— — — — 21ST AVE N
INTERSTATE 35E
Am z
S8
939.41
� 1 S 3 M 1 3 3 21 1 S d d 3 U
3
p
\\
A m
m
o
z
?
v ee
n. �°
CLEARWATER CREEK
Um�m
3�n=ma
-w_
o"O1
rr�9 D
ommm^mom
-Tyo D
ate'
°°�3 A;
T
z
N
m
W K
o 3o
w�
,�goa�
®mO C)
w
m
K m
BUSINESS PARK
o �m �_
�'' _;�'
�NN> =;
ril<A
=
o_
Z
c==
��o_�
z
o
a;
z
3
N
Lino Lakes, Minnesota
��
mm
T
i Z
-
=■lid In
1 d 1 W H 0 , a V
Z
O
Q\
W
J
W
ce
Z
W