ITEM 7.3 DEEDTY O
06eF o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance
Director Flaherty
January 8, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Administrator/ Finance Director
Flaherty
and construction of their respective manufacturing facility. In order for the development of the industrial
7.3
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the corresponding resolution supporting a
Business Development Infrastructure Application to Minnesota Department of Employment and Economic
Development (DEED).
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/J USTI FICATION:
The City has been working with Bury Companies, Inc., to facilitate the development of an industrial park
and construction of their respective manufacturing facility. In order for the development of the industrial
park to proceed, the Kadler Avenue street infrastructure will need to be improved. The cost of these
improvements is significant, and creates a hardship on both the City and the developer. Therefore, the City
is seeking the business development public infrastructure assistance from DEED.
City staff has had preliminary discussions with DEED staff, and have been encouraged to submit an
application for this project. This project specifically meets the eligibility requirements as it would create a
new industrial park that could be used by manufacturing, technology and warehousing users.
If awarded, the grant would require the City to commit financial resources to meet the 50% matching
requirement. The current engineers estimate for the project is $1,736,721, equating to a local match of
$868,362. The City has financial resources available in a capital projects reserve fund that could be
committed towards the local match. During previous discussions, the Council has indicated their support in
issuing bonds to finance this project. The bond proceeds would be used to reimburse the matching funds
from the capital projects reserve fund.
The attached resolution is required as part of the application, which is expected to be fully complete and
submitted to DEED in the next two weeks. The grant has an "open" application process, so City staff
expects the application will be reviewed by DEED staff upon receipt. During preliminary discussions with
DEED staff, they were not willing to commit to a timeline, rather stating that the review process is
dependent upon the quality of the application.
SUPPORTING DOCUMENTS ATTACHED:
0 Resolution 2018-04
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2018-04; supporting a Business Development Infrastructure Application to
Minnesota Department of Employment and Economic Development (DEED).
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2018-04
KADLER AVENUE
BUSINESS DEVELOPMENT INFRASTRUCTURE APPLICATION
WHEREAS, the City of Otsego act as the legal sponsor for project contained in the Business Development
Infiastructure Application to be submitted on or around January 16, 2018 and that the Mayor and City
Administrator are hereby authorized to apply to the Department of Employment and Economic Development
for funding of this project on behalf of the City of Otsego; and
WHEREAS, the City of Otsego has the legal authority to apply for financial assistance, and the
institutional, managerial, and financial capability to ensure matching funds, adequate construction,
operation, maintenance and replacement of the proposed project for its design life; and
WHEREAS, the City of Otsego has not violated any Federal, State, or local laws pertaining to fraud,
bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice; and
WHEREAS, that upon approval of its application by the state, the City of Otsego may enter into an
agreement with the State of Minnesota for the above -referenced project, and that it will comply with all
applicable laws and regulations as stated in all contract agreements; and
WHEREAS, that the non-BDPI sources of funds identified in the sources and uses outline in the
application in the total amount of $868,362 are committed and adequate to fully fund the project
identified in the application; and
WHEREAS, that per MN statute 116J.431 Subd 7, the City of Otsego understands the grant may be
cancelled if the project identified in the Application is not proceeding within 18 months of the execution
of a grant agreement, or if not complete after five years of any grant award; and
WHEREAS, the City of Otsego certifies that it will comply with all applicable laws, regulations, and rules
of the Business Development Infrastructure Application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
1. That the Mayor and City Administrator, or their successors in office, are hereby authorized to
execute such agreements, and amendments thereto, as are necessary to implement the project on
behalf of the City of Otsego.
ADOPTED by the Otsego City Council this 8th day of January, 2018.
CITY OF OTSEGO
Jessica Stockamp, Mayor
Adam Flaherty, City Administrator
ATTEST
I certify that the above resolution was adopted by the Otsego City Council on January 8, 2018.
MOTION made by Council Member
IN FAVOR:
OPPOSED:
2
Tami Loff, City Clerk
and SECONDED by Council Member