HomeMy WebLinkAbout2015-08-11 PACKET 04.B.01.
To: Economic Development Authority Members
From: Robin Roland, Finance Director
Date: August 3, 2015
Subject: Public Hearing: Minnesota Investment Fund Application for American Logistics
Introduction & Discussion
At the April 14, 2015 Economic Development Authority (EDA) meeting, the EDA passed a
resolution supporting a Minnesota Investment Fund (MIF) Loan from the Minnesota Department
of Employment and Economic Development (DEED) supporting the Agco/American Logistics
expansion in the business park.
Due to procedural issues, the Public Hearing must be held again in order to correct the official
corporate name on the documents. This public hearing was advertised for the EDA meeting at
7:30 am on August 11, 2015.
The Minnesota Investment Fund (MIF) was created with the support of the Minnesota 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
are met, the business is eligible for the forgiveness of the loan.
MIF is necessary for the project to offset the capital investment required for American Logistics
to expand operations at the new Cottage Grove facility. This expansion anticipates job growth
of additional 70 market rate based manufacturing jobs.
The corrected resolution is attached with this memo for the EDA’s approval.
Action Requested
Hold the Public Hearing.
Adopt the resolution regarding the MIF application on behalf of American Logistics.