HomeMy WebLinkAbout2015-04-14 PACKET 04.C.01.
TO: Economic Development Authority
FROM: Danette M Parr, Economic Development Director
Ryan Schroeder, City Administrator/EDA Executive Director
DATE: April 9, 2015
RE: Public Hearing: Minnesota Investment Fund Application for South
St. Paul Agri Properties
Background
The purpose of this agenda item is for the Economic Development Authority (EDA)
to hold a public hearing and consider support of a Minnesota Investment Fund
(MIF) loan from the Minnesota Department of Employment and Economic
Development (DEED) to support a business expansion plan at the South St. Paul
Agri Properties (also known as American Distribution & Manufacturing
Company/AG CO) facility located in the Cottage Grove Business Park.
The Minnesota Investment Fund (MIF) was created with the support of the MN
Governor and Legislators. DEED has been instrumental in working with local units
of government to utilize this program for the purpose of providing financing to help
add workers and retain high-quality jobs. The focus of the program is on industrial,
manufacturing, and technology related industries to increase the local and state
tax base and increase economic vitality. All qualifying MIF projects must meet a
minimum criteria for private investment, number of jobs created or retained, and
wages paid. MIF funds are awarded to the City and granted to the expanding
business through the City. For that reason, the City is responsible for submitting
reports to DEED and assuring that all program requirements are being met.
Through the MIF program, once all requirements have been met, the business is
eligible for the forgiveness of the MIF loan.
Discussion
South St. Paul Agri Properties has operated in Cottage Grove since 2005 and has
over 155 employees. The proposed project would be an expansion of the current
facility, which would add capacity for their business.
MIF is necessary for the project to offset the capital investment required for South
St. Paul Agri Properties to expand their operations at the Cottage Grove facility.
By providing MIF financing to help retain expansion in Minnesota, both Cottage
Grove and the State benefit from an anticipated growth of an additional 70 market
Honorable EDA President and Members
So St. Paul Agri Properties MIF Application
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rate based on manufacturing jobs over the next three years and a significant capital
investment.
Recommendation
Staff recommends approval of the resolution for the South St. Paul Agri Properties
MIF loan application to DEED.
Necessary Action
After holding the public hearing, if the EDA supports the resolution (attached), a
motion and second should be made and the resolution approved.