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HomeMy WebLinkAbout5.1 Minnesota Investment Fund (MIF) Application Up North Plastics TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: October 2, 2018 RE: Pubic Hearing: Minnesota Investment Fund Application for Up North Plastics Background Up North Plastics located at 9480 Jamaica Avenue South has been in the Cottage Grove Business Park since 1981. Up North Plastics produces agricultural plastics and construction film at the facility. Up North Plastics is located on 88 acres and currently includes a 451,000 square foot manufacturing and warehouse facility and employs 252 full-time employees. Up North Plastics has seen tremendous success in their business and they are looking to capitalize on that success by potentially adding an additional 459,000 square foot facility to their site and employ an additional 200 employees. Up North Plastics has considered Cottage Grove as well as other states located in the south and western United States. Up North Plastics is interested in the Cottage Grove location due to the existing facility location that they can benefit from, as well as, the incentives offered by the State of Minnesota and the City of Cottage Grove to locate their proposed expansion in our community. As part of the incentives offered by the State of Minnesota and the City of Cottage Grove, Up North Plastics will be applying for the State business finance program Minnesota Investment Fund (MIF) and Job Creation Fund (JCF). The City will be responsible for submitting reports and monitoring these programs for the State. The City of Cottage Grove has participated in these programs previously with other Business Park businesses such as American Logistics and Renewal by Andersen. MIF was created with the support of the Minnesota Governor and Legislators. The Department of Employment and Economic Development (DEED) is instrumental in working with local units of government to utilize the MIF 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 Economic Development Authority October 9, 2018 Page 2 of 2 Up North Plastics has operated in Cottage Grove since 1981 and has over 250 employees. The proposed project would be an additional building at their current facility, which would add capacity for their business and employees for their operation. MIF is necessary for the project to offset the capital investment required for Up North Plastics 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 200 market rate based on manufacturing jobs over the next three years and a significant capital investment. Recommendation By motion approve a resolution regarding an application by Up North Plastics MIF loan application to DEED. Attachment 1. Resolution RESOLUTION NO. EDA 2018-008 RESOLUTION REGARDING AN APPLICATION BY UP NORTH PLASTICS, INC. FOR MINNESOTA INVESTMENT FUNDS WHEREAS, the City of Cottage Grove Economic Development Authority, of Minnesota (the “City EDA”), desires to assist UP NORTH PLASTICS, INC., a manufacturing and warehouse company, which is proposing to construct an expansion to their facility in the City; and, WHEREAS, the City of COTTAGE GROVE understands UP NORTH PLASTICS, INC., through and with the support of the EDA, intends to submit to the Minnesota Department of Employment and Economic Development an application for a Minnesota Investment Fund (MIF) loan; and, WHEREAS, the City of COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY held a public hearing at the Economic Development Authority meeting on October 9, 2018, where this item was considered. BE IT RESOLVED, that the EDA will act as the legal sponsor for the project contained in the Minnesota Investment Fund Application to be submitted in October of 2018 and that EDA President Myron Bailey and EDA Executive Director Charlene Stevens are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of UP NORTH PLASTICS, INC. BE IT FURTHER RESOLVED, that the EDA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to administer the project. BE IT FURTHER RESOLVED, the EDA has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURHTER RESOLVED, upon approval of its application by the State, the EDA may enter into a grant contract with the State of Minnesota for the approved project, and that the EDA certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the grant contract and described in the Project Compliance Certification of the Application. AS APPLICABLE, BE IT FURHTER RESOLVED, that the EDA has obtained credit reports and credit information on UP NORTH PLASTICS, INC. and business owners. Upon review by the EDA and EDA’s Legal Counsel, LeVander, Gillen, and Miller, P.A., no adverse findings or concerns regarding, but not limited to, tax liens, judgements, court actions, and filings with state, federal and other regulatory agencies were identified. Failure to disclose any such adverse information could result in revocation or other legal action. NOW, THEREFORE BE IT RESOLVED that EDA President Myron Bailey and EDA Executive Director Charlene Stevens are hereby authorized to execute such contracts and amendments thereto, as are necessary to implement the project on behalf of the Applicant. I CERTIFY THAT the above resolution was adopted by the EDA on this the 9th day of October 2018. SIGNED: _____________________________ ________ Myron Bailey, EDA President Date ____________________________________ _________ Charlene Stevens, EDA Executive Director Date WITNESSED: ___________________________ _________ Notary Date