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HomeMy WebLinkAbout4.2 Request the City Council call for a public hearing for the creation of a TIF district for Up North Plastics TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: October 1, 2018 RE: Request the City Council to Call for a Public Hearing for the Creation of a TIF District (No. 1-19) 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 Facility 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 Economic Development Authority October 9, 2018 Page 2 of 3 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. View on CP Rail Line looking towards Hastings Proposed Building Addition Economic Development Authority October 9, 2018 Page 3 of 3 Discussion 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. The incentive offer for the City is in the form of tax increment financing (TIF) to finance the costs related to the development of the proposed new facility at Up North Plastics. The TIF would be an Economic Development TIF District with a life of nine years. Up North Plastics has submitted a business subsidy application which will be reviewed by our financial advisors, Ehlers Inc., to meet the “but for” analysis and statutory qualifications. In order to begin the process, the EDA by resolution must request that the City Council call for a public hearing for the creation of a TIF District for Up North Plastics. Ehlers Inc., will do a thorough analysis, which will be presented at the November 13th EDA meeting. Recommendation By motion approve the resolution requesting that the City Council call for a public hearing on the Modification of Development District No. 1 and the Establishment of Tax Increment Financing District No. 1-19. Attachment 1. Resolution Requesting City Council Call for a Public Hearing 2. TIF Schedule COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. ______________ RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF COTTAGE GROVE CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-19 (AN ECONOMIC DEVELOPMENT DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Cottage Grove Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Cottage Grove, Minnesota (the "City") established Development District No. 1 pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of Development District No. 1 and the establishment of Tax Increment Financing District No. 1-19, pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 to 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on December 5, 2018 to consider the proposed adoption of the Modification to the Development Program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 1- 19 (collectively, the "Program and Plan") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Program and Plan to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Program and Plan are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Program and Plan to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Program and Plan to the county and the school district in which Tax Increment Financing District No. 1-19 is located not later than November 2, 2018. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plan and related documents and to undertake other actions necessary to bring the Plan before the Council. Approved by the Board on October 9, 2018. _______________________________ Chair ATTEST: ______________________________ Secretary \[Ehlers will provide information for packet by September 5, 2018.\] \[Ehlers will provide information for packet by September 13, 2018.\] if necessary \[Ehlers will fax & mail on or before October 5, 2018.\] \[Ehlers will provide packet information by October 30, 2018.\] \[South Washington County Bulletin publication deadline, 4:00 P.M., November 14, 2018. – Ehlers will submit notice, map, and instructions to newspaper via email on or before November 12, 2018.\] \[Ehlers will provide packet information by October 17, 2018.\] \[Ehlers will send Council packet information to City via email on or before November 1, 2018.\]