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HomeMy WebLinkAbout2015/12/21 - ADMIN - Minutes - Economic Development Authority - RegularIffSt. Louis Park OFFICIAL MINUTES M I N N E S 0 T A ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA DECEMBER 21, 2015 1. Call to Order President Mavity called the meeting to order at 7:16 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfn, Gregg Lindberg, Susan Sanger, and Jake Spano. Commissioners absent: Jeff Jacobs. Staff present: Deputy City Manager/Human Resources Director (Ms. Deno), Executive Director (Mr. Harmenirig), Economic Development Coordinator (Mr. Hunt), City Attorney (Mr. Mattick), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Batra). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes December 7, 2015 It was moved by Commissioner Lindberg, seconded by Commissioner Spano, to approve the EDA minutes as presented. The motion passed 6-0. 4. Approval of Agenda It was moved by Commissioner Brausen, seconded by Commissioner Hallfin, to approve the EDA agenda as presented. The motion passed 6-0. 5. Reports - None 6. Old Business - None 7. New Business 7a. Submission of a DEED Minnesota Investment Fund Application on Behalf of MoneyGram. Resolution No. 15-33. Mr. Hunt explained MoneyGram is expanding local operations at The West End to include equipment upgrades and office improvements. The $7.7 million expansion is expected to result in the addition of 86 high paying jobs over the next two years. MoneyGram's expansion is eligible for the Minnesota Investment Fund (MIF) program administered by the Department of Employment and Economic Development (DEED). To receive MIF funds, businesses must submit an application in coordination with their local government and must have a Resolution of Support adopted. He explained there is Economic Development Authority -2- December 21, 2015 no local fund matching requirement for MIF applications. The City is applying for a MIF -forgivable loan of $500,000. If awarded, the loan funds would be directed to the EDA to disburse to MoneyGram. The EDA would then work with MoneyGram to monitor the number of jobs created over the next three years and will be responsible for submitting annual reports to DEED for up to an additional three years. Staff recommends a public hearing and adopting a Resolution of Support from the EDA. In reference to the present and next Resolution, Commissioner Sanger asked how much involvement the City will need to have to audit and verify the required information to DEED to fulfill the reporting requirements. Mr. Hunt responded that DEED provides the City with a form to fill out to gather this information. Commissioner Sanger stated the process is not much work for the City, but the process depends on MoneyGram reporting the information accurately. Mr. Hunt explained, since the City does not have another way to gather this information, the process does depend on MoneyGram's accurate reporting of the facts. Commissioner Spano stated, from his previous experience, the State has the auditing responsibility; therefore, the City is gathering the information but DEED checks the business. Mr. Hunt noted that the audit is conducted at the conclusion of the approved length of time, which is three to five years. President Mavity opened the public hearing. No speakers were present. President Mavity closed the public hearing. Commissioner Brausen stated this is a fantastic program that the State offers to assist in creating 86 high paying jobs in the City, in addition to the capital investments that MoneyGram would make in return to a property in The West End. It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to waive the reading and adopt EDA Resolution No. 15-33, approving a Minnesota Investment Fund (MIF) application to the Department of Employment and Economic Development (DEED) on behalf of MoneyGram, a St. Louis Parr company. Commissioner Spano stated former DEED Commissioner, Dan McElroy, could clarify the reporting responsibilities. Mr. McElroy stated from 2007 to 2011 he was a Commissioner for DEED. He explained the State does have the obligation to audit the business and the State uses the employee data from unemployment insurance filings to track the information. In addition, the contract includes terms that make falsifying information to the State very onerous on the business. He stated the proposal would be beneficial to both the State and the City. The motion passed 6-0. (Commissioner Jeff Jacobs absent.) 7b. Submission of a DEED Job Creation Fund Application on Behalf of Novu. Resolution No. 15-34. Mr. Hunt explained Novu increased its employment by more than 64% over the past year. As a result, Novu is in need of an expansion at the Parkdales Office Park. The proposed expansion will result in the addition of 60 to 90 high paying jobs over the next three to five years. Novu's expansion is eligible for DEED's Minnesota Job Creation Fund (JCF). The company is applying for a JCF award of approximately $450,000. The funds would help offset a portion of the equipment and office upgrades. There is no local matching fund requirement for the JCF application. He explained, if awarded, the funds Economic Development Authority -3- December 21, 2015 would be dispersed directly to Nova. City staff would assist Nova with annual progress reports to satisfy the requirement of the award. The JCF application requires adoption of a Resolution of Support from a local government indicating support for the proposed expansion. Staff recommends adoption of the proposed Resolution as presented. President Mavity stated this submission does not require a public hearing. Commissioner Brausen moved approval and stated this is a great State program, which creates several high paying jobs in the City. It was moved by Commissioner Brausen, seconded by Commissioner Spano, to waive the reading and adopt EDA Resolution No. 15-34, approving a Job Creation Fund application to the Department of Employment and Economic Development (DEED) on behalf ofNovu. The motion passed 6-0. (Commissioner Jeff Jacobs absent) 7c. 2016 Final HRA Levy Certification and Budget Adoption. Resolution No. 15-35. Mr. Swanson explained the policy consideration is whether the City Council wants to levy the full 2016 HRA levy allowed, $1,011,208, which is an increase of $57,970 or approximately 6.08% over the 2015 Final HRA Levy. He stated this levy was originally implemented in 2001 and has been used to fund the City's infrastructure improvements and redevelopment areas. He explained the funds are committed to funding the Highway 7 and Louisiana Avenue project until 2021, based on the current Long Range Financial Management Plan. He added that the EDA is authorized to approve this HRA levy and then forward this recommendation to the Council for consideration. It was moved by Commissioner Sanger, seconded by Commissioner Spano, to waive the reading and adopt EDA Resolution No. 15-35, approving the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval of the 2016 Final HRA Levy and Budget for fiscal year 2016 President Mavity noted this proposed levy increase has been thoroughly vetted and reviewed previously as the EDA has been discussing this topic since July. The motion passed 6-0. (Commissioner Jeff Jacobs absent.) S. Communications - None 9. Adjournment The meeting adjourned at 7:27 p.m. Melis a Iennedy, Secretary Anne Mavity, President