HomeMy WebLinkAbout4.2 Project Viking Letter of Intent
TO: Economic Development Authority
FROM: Matt Wolf, Economic Development Specialist
DATE: January 3, 2019
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RE: Letter of Intent (LOI) to Purchase Real Estate at 8620 100 Street S.
Background
As part of our shovel ready site certification by Xcel Energy in July of 2018 the City of Cottage
Grove had a meeting to discuss a proposed project called Project Viking. Project Viking was a
company looking for 8-10 acres of heavy
industrially zoned land. Project Viking made
it clear that they were searching for a site
throughout Minnesota, Iowa and Wisconsin
expand their Midwest operations. Due to the
nature of the business 9 acres of the 24.5-
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acre parcel just east of 100 Street South and
Jamaica Avenue South zoned I-3 Heavy
Industrial was selected to be the best fit for
the potential project.
After reviewing numerous sites across the
Midwest, Project Viking selected Cottage
Grove as the site for their new facility
contingent upon the necessary approvals by
the EDA, Planning Commission and City
Council. As a result, Project Viking became
known as Airgas USA LLC an international
company that specializes in industrial,
medical and specialty gases generally
delivered via cylinder form.
Discussion
On January 3, 2019 the City received an LOI
from Airgas USA LLC to work exclusively with
Figure 1. Proposed project area
the EDA on a purchase agreement for the
proposed project site, shown in Figure 1.
Airgas USA LLC has requested business subsidy assistance. The of Minnesota’s Department of
Employment and Economic Development has offered assistance through the Minnesota
Investment Fund and Job Creation Fund. Additionally, the City of Cottage Grove has offered
assistance to the project in the form of utility improvements, waiver of development fees and
Economic Development Authority
January 3, 2019
Page 2 of 2
lowered land price. Full project specifications will be presented to the EDA and City Council based
upon the tentative schedule below:
Economic Development Authority
Jan. 8, 2019 - Letter of Intent
Feb. 13, 2019 – Resolution of support for the Minnesota Job Creation Fund
PUBLIC HEARING – Purchase Agreement, Business Subsidy Agreement
and Minnesota Investment Fund
Planning Commission
Feb. 25, 2019 – PUBLIC HEARING - Conditional Use Permit, Variances (Height and
Building Materials)
City Council
March 20, 2019 – Council approval of:
Business Subsidy Agreement
Purchase Agreement
Minnesota Investment Fund
Job Creation Fund
Conditional Use Permit
Variances
Recommendation
Authorize the Executive Director to execute the Letter of Intent (LOI) with Airgas USA LLC for the
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purchase of 9 acres of property in the Cottage Grove Industrial Park at 8620 100 Street.
Attachment
Letter of Intent from Airgas USA LLC