HomeMy WebLinkAbout10/06/2016 EDAC PacketCITY OF LINO LAKES
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING
Thursday, October 06, 2016
8:00 A.M.
Community Room
AGENDA
CALL TO ORDER AND ROLL CALL
2. APPROVAL OF MINUTES. July 07, 2016
3. DISCUSSION ITEMS
A. Project Updates
• Clearwater Creek Business Park
• Woods Edge
• Upcoming Projects
4. ADJOURN
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: July 7, 2016
MEMBERS
PRESENT: Thomas Colgan, Jim Schueller, Don Johnson, Rebecca Glewwe
MEMBERS
ABSENT: Julie Schwartz, Tami Wier, Nathan Vojtech, Lou Masonick, Chad Wagner
OTHERS PRESENT: Michael Grochala, Alex McKenzie
APPROVAL OF MINUTES
It was moved by Rebecca Glewwe to approve the minutes from June 2, 2016. The Motion was
seconded by Tomas Colgan and passed unanimously.
United Properties Distribution Center -TAX INCREMENT FINANCING
Mr. Grochala and staff have 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 EDAC, Planning & Zoning board and City Council. United Properties submitted
a request for rezoning to Planned Unit Development, Development Stage Plan Approval and
Preliminary Plat arrival which includes the 56 acre site and two outlots for future development.
The Planning and Zoning board held a public hearing on June 8, 2016 which was continued for
further discussion on July 13, 2016.
Development of the site will require the extension of 2 1 " Avenue, from Commerce Avenue
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. The comprehensive plan states the extension
of 21st Avenue to Cedar Street, and right of way will be considered to be obtained during this
project.
The total project cost is approximately $24,000,000 with an estimated building/site value of
$18,200,000. The City is proposing to limit the duration of tax increment to approximately 5.5
years with an assistance of $1.2 million. The property is within the "Green Acres" tax
designation and the facility must meet more restrictive conditions. To meet the tax increment
district requirements the tenant will need to pay 90% of the employees 160% of the federal
minimum wage ($11.60/hour). The company currently employs 120 full time employees and
staff is proposing a minimum job goal of 60. The City is estimating $700,000 in property taxes
per year, with $100,000 in building permits, $400,000 in trunk utility fees and $65,000 in Park
Dedication fees.
Mr. Colgan approves the site for this kind of use and business along with the TIF fitting the
needs of the City, and being risk fee. Mr. Johnson questioned if the billboard on site will be
relocated if moved, and Mr. Grochala explained under a newly passed ordinance the sign will be
non -conforming if moved and not permitted.
PROJECT UPDATES
Mr. Grochala provided updates on projects throughout Lino Lakes. Watermark preliminary plan
was approved at the June Planning and Zoning board meeting. Staff is still working on a storm
water management plan for the area including the Watermark Development. D.R. Horton plans
for Woods Edge Townhomes north of City Hall, was approved at the June Planning and Zoning
board meeting and will proceed to City Council approval. St. Clair Estates was tabled at the June
Planning and Zoning board meeting and will be revisited.
ADJOURNMENT
The meeting was adjourned at 8:55 AM.
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A proposal for the
Lino Lakes Smite Proposal
for GREATERMSP Project #556
September 22, 2016
C
September 22, 2016
F
Joel Akason
Director of Business Investment
GREATER MSP
400 Robert Street North
Suite 1600
St. Paul, Minnesota 55101
Regarding: Project #556
Dear Mr. Akason;
Thank you for allowing us the opportunity to provide information concerning the possible
locating of the new manufacturing facility for Project #556 in the City of Lino Lakes. This project
would be a strong fit for our existing business community, superior transportation access and
available workforce in the Lino Lakes area.
Based upon the information that was provided in the RFP, the City of Lino Lakes has identified
the following site that would allow for the construction of the proposed facility exceeding
861,000 square feet of building required. The complete information for the proposed site is
listed on the attachments including aerial photo, utilities information and possible assistance
programs for the currently described project. The infrastructure required for the project would
be constructed in conjunction with the development of the facility. This will allow for the exact
design of the infrastructure to be developed to the exact specifications for the project. Also
included in the information provided is a map showing the location of the site to Minneapolis/St.
Paul International airport and the community profile highlighting the proposed site for the
project.
In addition to the City assistance that is listed, it should also be noted that the Minnesota does
not have personal property tax, manufacturing equipment is exempt from sales tax, and there is
no sales tax on energy used in the manufacturing process. These financial incentives and
Minnesota's well-educated workforce will continue to give the company a competitive advantage
if it chooses the City of Lino Lakes to grow into the future.
Again, we are pleased you have engaged the City of Lino Lakes as a possible location for the
development of Project #556. Should you have any questions concerning the proposed
assistance package please do not hesitate to contact me at (651) 982-2427.
Sinc rely,
Mike Grochala
Lino Lakes Community Development Director
600 Town Center Parkway, Lino Lakes, MN 55014
Phone: 651-982-2400 •Fax: 651-982-2499
Project Overview
The proposed project is the development of a new manufacturing facility of 532,000 to 861,000
square feet of space. The project would consist of the following parameters:
• $265 million in capital investment
• The creation of 700 fulltime positions consisting of the following types:
o 383 Unskilled operators
o 22 Supervisors
o 134 Skilled operators
o 82 Technicians
o 41 Engineers
o 31 R&D Scientists
o 21 Support Staff
• Research and development facility with 30 scientists which will include a $30 million
training program.
• Decision year end 2016 and construction starting in late 2017.
The company has the following infrastructure needs for the proposed project:
• Site
0 35-60 acre industrial site fora 532,000sf to 861,000sf building.
o Site must allow for 36 high walls.
• Electrical Energy Requirements
0 95-100% power Factor
o Power Capacity Demand 9.8MVA
o Annual electrical usage of 49,600MWh
o Dual Feed and underground service
o Available renewable energy source preferred
• Thermal Energy Requirements
o Max hourly usage of 11,942,000 BTU, or 3,500KWh
o Max daily usage of 214,956,000 BTU, or 63,000KWh
• Water Service Requirements
o Daily usage of 31,700 gallons
o Annual usage of 11,359,398 gallons
o Maximum daily usage of 39,625 gallons
o Required delivery volume of 44GPM
o Required delivery pressure of 80PSI
• No specific requirements for sanitary sewer
• Data Service Requirements
o Fiber with bandwidth >100Mbps
September 22, 2016 Page 2 of 5
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
Electrical Service Requirements
Power Factor
95-100
Yes
Power Capacity Demand
9.8MVA
Yes
Annual Electrical Usage
491600MWh
Yes
Dual Feed and Underground
Service
Yes
Generation Mix
Renewables
20%
Water Service Requirements
Daily Usage
31,700 Gallons
YES
Annual Usage
11,359,938 Gallons
YES
Maximum Daily Usage
39,625 Gallons
YES
Required Delivery Volume
44 GPM
YES
Required Delivery Pressure
80 PSI
YES
Data Service Requirements
Fiber � Bandwidth > 100 Mbps � YES
Thermal Service Requirements
Maximum Hourly Usage
111942,000 BTU
YES
Maximum Daily Usage
21419561000 BTU
YES
September 22, 2016 Page 5 of 5
IE CITY OF LINO L
immunity Pra
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Incredible Spaces, Outstanding Opportunities,
Community Snapshot
Named... $255,178
i 2 1 Median Home Value
"Among Best U.S. Cities to Live" _ � $106 MilesofTrai<s "-_ Miles of Canoe Trails ,181
by: Money Magazine Median Household
Income
,
i
20,833 [��� 5,550 21 city
6 382 Households Acres of Connected Lino Lakes Parks 37 years
11�II��r1 Regional Parkland
Population Median Age
Source: ESRI Business Analyst Online Rice Creek Chain of Lakes Regional Park
Population Projections for Anoka County
Centennial School District 8 out of 10
Source: Zillow Real Estate Network',
Education Achievement -City of Lino Lakes
rHigh school graduate
za/ zt/
Some College
■ Bachelor's degree
4r20
Associates degree Post graduate degree
Source: American Community Survey (2074)
Total Population
Percent Change
Source: Minnesota State Demographic Center - (March 2014)
Drive Time Data
20 Minute
30 Minute
Population
69,729
Population
549,833
Population
11698,275
Households
25,729
Households
212,292
Households
671,489
Median Age
40.0
Median Age
38.0
Median Age
35.5
Proximity to Metro
and Drive Times
InterstatelHighway: Lino Lakes
is located between 35W and
35E providing ample vehiculer
accessibility to both Minneapolis
and St. Paul metropolitan centers
Air: Located 28 miles northwest
of the Minneapolis/St. Paul
International Airport and 9 miles
from the Anoka County Regional
Airport.
Incredible Spaces. Outstanding Opportunities.
Lino Lakes Top 10 Employers
Company Name
rY of Employees
State of Minnesota Corrections
447
Centennial School District
391
Target Corp
200
Curtis 1000
162
Malin Concrete
130
Rehbein Transit
130
Custom Remodelers
125
Kohls
123
City of Lino Lakes
86
Hampton Inn & Suites
80
Source: City of Lino Lakes (2014)
PROPOSED SITE
120 ACRES
Site Selection Requested Criteria
Water Service Requirements
Daily Usage — 31,700 Gallons
Annual Usage - 11,359,938 Gallons
Maximum Daily Usage - 39,625 Gallons
Required Delivery Volume - 44 GPM
Required Delivery Pressure - 80 PSI
Data Services Requirements
G Bandwith > 100 Mbps
Electrical Services Requirements
Power Factor - 95-100
Power Capacity Demand - 9.8 MVA
Annual Electrical Usage - 49,600 MWh
Dual Feed and Underground Service
Generation Mix
Thermal Service Requirements
Maximum Hourly Usage - 11,942,000 BTU
r j Maximum Daily Usage - 214,956,000 BTU
F
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cI
Incredible Spaces. Outstanding Opportunities,
Helpful Links:
Economic Development in Lino Lakes-
www.ci.lino-lakes.mn.us
Greater MSP-
www.greatermsp.org
Quad Area Chamber of Commerce-
www.quadchamber.org
Twin Cities Gateway -Convention and Tourism Bureau-
www.tcgateway.com
Michael Grochala, Community Development Director
michael.grochala@ci.lino-lakes.mn.us
(651) 982-2427
Local Assistance Programs
Tax Increment Financing (TIF)
Assistance for land write -down and/or site improvements for
qualified businesses.
Assistance may include:
• Acquisition of land
Preparation of sites for development
Construction or reconstruction of public
improvements
Removal of polluted lands as needed
increment financing, tax abatement, or other
financial tools available to the city
Regional Assistance Programs
Minnesota Investment Fund
Low interest loans to industrial, manufacturing and
technology businesses.
Small Business Development Loan Program
This loan is through the Minnesota Agricultural and
Economic Development Board who issues industrial
development bonds.
Small Business Administration (SBA)
Assistance with SBA loans.
Lino Lakes Welcomes YOU!
The City of Lino Lakes' Community Development
Department provides comprehensive services to
prospective and existing businesses by assisting with
site and building information, financial assistance,
and guidance through the regulatory and development
process.
. ff
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ALI AL
WAIN1',
LIMMI
Your Community Energy Partner
September 20, 2016
Mr. Michael Grochala
Community Development Director
City of Lino Lakes, MN
600 Town Center Parkway
Lino Lakes, MN 55014
Dear Mr. Grochala:
14601 Ramsey Boulevard
Ramsey, Minnesota 55303
763.323.2600
Fax: 763.323,2603
www.connexusenergy.com
infoQconnexusenergy.com
In response to your request for information regarding the Greater MSP Project #556, our engineering
department has made the following determination:
Electrical Energy Requirements (potential for a renewable energy supply preferred)
• Power Factor of 95-100% - NA
• Power Capacity demand of 9.8MVA — Yes we can meet
• Annual electrical usage of49,600MWh —Yes we can meet
• Looking for dual feed and underground service — Yes we can meet
Attached, please find our Large Load Discounted Rate Incentive information that will be offered for this
project. Please call meat 763.323.2685 if I can be of further assistance.
Sincerely, _
/e.-� z
Bruce Sayle
Principal, Community and Economic Development
NINO I'm
1 1, l 1 T
Your Community Energy Partner
September 19, 2016
Dear Decision Makers of Project 5560
14601 Ramsey Boulevard
Ramsey, Minnesota 55303
763.323.2600
Fax: 763.323.2603
www.connexusenergy.com
info® connexusenergy.com
I would like to introduce you to Connexus Energy. We are the largest electric distribution cooperative in
Minnesota and the 151h largest in the United States, Connexus Energy serves over 130,000 members
(customers) in the North Metro area of Minneapolis/St. Paul in Minnesota.
Outstanding Reliability and Serviee
We are acutely aware of the fact businesses like yours expect and need reliable power. That's where
we shine. Connexus Energy has among the highest levels of power reliability, restoration of power, and
overall quality in the U.S. In 2016, in relationship to our peers, we were ranked number one in those
three areas as well as in customer satisfactions.
The Cooperative Advantage
As a cooperative, our members/customers are actually owners of the utility. The benefits of being
served by a cooperative are many. As a member -owner, you have input on how our cooperative
operates. Because we are a cooperative, we can move more quickly to respond to your needs by
providing innovative programs and incentives. In fact, we will assign a team of energy professionals to
your account to ensure your needs are always met.
Environmental Stewardship
Connexus Energy's commitment to the environment has been proven many times over. Our power
supplier continues to obtain more renewable energy. Currently, our energy -mix portfolio includes 20%
carbon -free energy and that number continues to grow. In 2014, Connexus Energy built Minnesota's
largest community solar project. Today, the entire project is sold out, and we are working on building
more.
Community Stewardship
In the past five years, Connexus Energy has given $2.1 million back to the communities we serve. We
focus on supporting youth and education, community leadership and services, and environmental
education programs.
Attached you will find our response to your electrical requirements of the project. Connexus Energy
wants to be your community energy partner. We look forward to serving you in the future.
Sincere
Greg Ri �'erbusch
Chief xecutive Officer
Connexus Energy
t
crµ1`�s
NEW LARGE LOAD DISCOUNTED RATE
To encourage economic development in the north metroI
Connexus Energy now offers a five-year discounted rate to
new, large electrical users. This opportunity is only available for
a limited period of time. The reduced rate can potentially save
companies thousands of dollars a year on their electric bills.
While Connexus Energy's rates are competitive and lower than
the national averages, this new incentive is designed to further
help new businesses grow and spur the local economy.
ELIGIBILITY CRITERIA
• New load with a monthly coincident billing peak demand greater than or equal to 750 kW.'
• Monthly load factor greater than or equal to 40%,
• For new industrial businesses and data centers. (Not available for retail operations.)
GENERALTERMS AND CONDITIONS
• A single term agreement up to five consecutive years in length for firm service.
The specc terms and conditions applicable to each qualifying load shall beset forth in a separate agreement for the
Discounted Rate by the Member and Connexus.
Member will be ineligible for Connexus' Peak Shaving Generation Credit Rider during the term of the Discounted Rate
agreement and, upon expiration, for an additional three years.
• Rates/Credits
> Each month that the metered coincident billing peak demand is greater than or equal to 750 kW a discount will be
applied to the rate.
> If the metered coincident billing peak demand is less than 750 kW, no discount will be applied.
UESTIONS
Contact Bruce Sayler 763.323.2685 or Don Haller 763.323.2839.
• � CONNEXUS®
'The billing peak demand shall be the equal to the one -hour integrated maximum kilowatt demand at the time of ���
Connexus Energy's monthly coincident peak demand. Your community Energy Partner
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