ITEM 3.12B DEEDOtsTY F
MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
September 14, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent
3.12E
AGENDA ITEM DETAILS
OEM
RECOMMENDATION:
Recommend approval of the attached resolution supporting a Business Development Infrastructure
Application to the Minnesota DEED and committing the local match requirement of $317,697.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City has been working with P & F Machining, Inc., to facilitate their business expansion on Outlot A,
Great River Centre 3rd Addition. One of the development requirements is the extension of Quaday and
the installation of water and sewer lines the full length of the lot along the western property line (Great
River Centre Improvement Project). The cost of these improvements is prohibitive to the development
of the property and the expansion of P & F Machining, Inc., without financial assistance. The Great River
Centre Improvement Project creates the opportunity for additional industrial development beyond P & F
Machining's proposed 54,400 square foot facility.
This project meets the eligibility requirements of Minnesota DEED's Business Development
Infrastructure Grant (BDPI) based on review of the application and preliminary discussion with DEED
staff. BDPI grants fund infrastructure expansion to develop industrial parks "that will keep and/or
enhance jobs, increase the tax base within a city and expand or create new economic development in
the specified area..." The P & F Machining, Inc., proposal itself will bring a minimum of 50 jobs and
approximately $115,000 to $125,000 of tax revenue per year. A second phase of the development
consisting of approximately 34,000 square feet is expected within two years with additional
development to follow.
The attached resolution is required as part of the application for the infrastructure grant. The
application will be submitted following approval of the resolution. DEED staff will review the City's grant
application when received, this is an open application process, and the City should know within 30-45
days if the project will be funded.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Resolution 2015-50 A Resolution for Business Development Infrastructure Application
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve resolution 2015-50, a Resolution for Business Development Infrastructure
Application.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
$317,697 City Commitment
X ❑ NO
ACTION TAKEN
MMIMMEM
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
RESOLUTION NO.: 2015 - 50
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
BUSINESS DEVELOPMENT INFRASTRUCTURE APPLICATION
BE IT RESOLVED that City of Otsego act as the legal sponsor for project(s) contained
in the Business Development Infrastructure Application to be submitted on September 15, 2015
and that the Mayor and City Clerk are hereby authorized to apply to the Department of
Employment and Economic Development for funding of this project on behalf of City of Otsego.
BE IT FURTHUR RESOLVED that City of Otsego has 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.
BE IT FURTHUR RESOLVED that 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.
BE IT FURTHUR RESOLVED that upon approval of its application by the state, City of
Otsego, may enter into an agreement with the State of Minnesota for the above -referenced
project(s), and that it will comply with all applicable laws and regulations as stated in all contract
agreements.
BE IT FURTHUR RESOLVED that upon approval of its application by the state, City of
Otsego, will commit $317,697 towards the local match requirements.
BE IT FURTHUR RESOLVED that City of Otsego will repay the grant if milestones are
not realized by the completion date identified in the Application.
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 that the Mayor and City Clerk, or their
successors in office, are hereby authorized to execute such agreements and amendments
thereto, as are necessary to implement the project(s) on behalf of the applicant.
I CERTIFY THAT the above resolution was adopted by the City Council of City of Otsego
on September 14, 2015.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
CITY OF OTSEGO
BY:
Jessica Stockamp, Mayor
ATTEST:
Tami Loff, City Clerk