Agenda - Council - 06/24/2003 - Laserfiche WebLink

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CASE # ~ · APPLICATION TO THE MINNESOTA INVESTMENT FUND TO PROVIDE FINANCING FOR PANTHER PRECISION MACHINE, INC. By: Michael J. Mulrooney, Economic Development Consultant Background: One of the City of Ramsey's successes this year has been the attraction of Panther Precision Machine, Inc. to the community. The company is in the process of constructing a 30,000 square foot manufacturing building in the City's Sunfish Business Park. Panther Precision Machine, Inc. is a precision machining company that has been in business since February 1998. Panther Precision will offer job opportunities at significant wage levels while at the same time improving the City's com_rnercial/industrial tax base. The company started as a three person team and currently has 14 full-time employees and one part-time employee. It is anticipated that the company will create a minimum of seven new additional jobs in the City of Ramsey within two years following the completion of the project. Financing for equipment was one of the incentives that the City proposed to the company as a part of an overall incentive package. The City offered to seek assistance for the company in the form of a grant from the Minnesota Department of Trade and Economic Development in the amount of $87,000. The requested grant funds will be placed into the City's Revolving Loan Fund. A loan will then be made to Panther Precision Machine, Inc. to purchase new equipment that will improve their manufacturing process. This new process will allow the company to' continue to be competitive in its industry. With the equipment, the overall investment in the City of Ramsey that the company will be making approaches $1.8 million. To recap, the project will address the following economic development objectives for the city: · Expand the city's tax base. · Create additional employment opportunities for residents of the city. Grant Application Process Prior to the submission of the grant application, the City must hold a public hearing for the purpose of receiving comments from the general public regarding the proposed financing. Following the public hearing, the Council must approve a resolution substantially in the form attached if the Council wishes to proceed ahead with the application process. I will be attending the City Council meeting and Public Hearing to address any questions that the Council may have in regard to the grant application. Staff Recommendation It is recommended that the City Council adopt the attached resolution authorizing the execution and submittal of a grant application on behalf of Panther Precision Machine, Inc. -171-