Agenda - Council - 01/22/2002 - Laserfiche WebLink

Home

I I I I I identified in the agreement. When the agreement was executed, Systematic Refrigeration represented that they would crate 50 jobs within two years of the completion of the project at an hourly wage rate of at least $10.00 per hour or more. The company proceeded to construct an 80,000 square foot manufacturing plant in the City. However, due to the economy the company currently employs 45 people and will be unable to achieve the goal. Zero Zone does not believe that they will achieve the job creation requirement within the timeframe stipulated in the agreement. Therefore, they have asked that the agreement be amended to read that the company will retain 45 jobs in the City during the term stipulated in the agreement. The Minnesota Department of Trade and Economic Development provided a grant to the City in the amount of $300,000 to originally assist the Systematic Refrigeration project. DTED Representatives have said that they believe that the acquisition is in the best interest of the City and State and that they will approve the request being made by the company through a "grant adjustment notice." If the requested amendment is appr~, the company will retain the current jobs in the City if Ramsey and the State of Minnesota:~'~he~ amendment is not approved it is quite likely that Systematic Refrigeration will ceas~i;(6p:eration§i~d be hqmdated. The jobs will then be lost. Based on his findings, Mr. Mulroo~y beheved t~t approval of the amendment'is reasonable and will result in ~.;?;~ ~ . ,4,~)~:~'~ . . . . . the jobs and the compgny be~sg:?:;Peta¢~d m the C~ty of Ramsey. Zero Zone ~s acqumng Systematic Refrigerati°h':}~~t e business over the long term and is interested in keeping the operation in--- ~'~the Ci~i!~}'}~ture '~wth of the business is possible with the level of capital and distribution networ~J~t 2~o Zo~can bring to the table. C~ty' Attorney Goodrich reviewed the~!~esolution~,,,~,::~. .... .... th~k~was,~.;~,~, ~ presented for .... adoption. He explained that the City has a development a~bemen, t::"~Rh~M~,teski Propertzes and m addmon to the development agreement Mateski ProP~ffi'~g~ als~%ntered into an agreement for a MN Loan Investment Fund where the City received $3'B~}~00 fro~Sthe State and loaned it to Mateski Properties. The amount owed to the C~ty on ~t loa~i~,.:~$261~000. The rights and obhgations would be assumed by ZZ Acqms~t~on, which w, oul& ~3¢}~e retatmng the 38 jobs and creating the 7 new jobs and making payments on the $300,00'0~ote.~ orde~ ~do that they would need to amend the TIF agreement as well as the loan agreement. · Citizen Input David Elvik, 17201 Tungsten Avenue NW, Ramsey, inquired if there was anything that would render the contract null and void and leave the City vulnerable. City Attorney Goodrich replied no, explaining that the securities would stay in place. M~'. Elvik stated that over the last several years they have lost a few businesses in the City and the concern is that industries have become vulnerable in today's economy and he asked that everyone be aware of that when they are handing out TIF when considering industrial versus commercial. Motion to by Councilmember Hendriksen, seconded by Councilmember Zimmerman, to close the public hearing. City Council/January 8, 2002 Page 7 of 27 -57-