Agenda - Economic Development Authority - 06/09/2011

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Economic Development Authority (EDA) 4. 1. Meeting Date: 06/09/2011 By: Aaron Backman, Administrative Services Title: Minneapolis Manufacturing Prospect Update Background: The Economic Development/Marketing Manager continues to be in contact with management of the Minneapolis prospect that is considering locating a manufacturing facility at the Bury & Carlson site in Ramsey. Management has largely finished gathering information regarding site options. They will be presenting three primary options to the Company's Board of Directors. One option is a new industrial facility in the City of Ramsey, the second is a leased industrial facility (River Road Industrial building) in Fridley, and the third is an existing industrial building in Cincinnati, Ohio. The final siting decision will be made at the Board meeting in June. The prospect's management indicated two weeks ago that new equipment for the plant was arriving in December (and that they have also acquired equipment from a competitor). Management has also said that there is rough parity between Ramsey and Cincinnati from an economic standpoint. To ensure that the City is in as strong a position as possible, Jeff LaFavre, the City's listing agent, and the ED/M Manager have had discussions with the State of Minnesota regarding DEED's financial participation for an expansion project in Ramsey. On May 26th a DEED committee met to consider whether to provide financial assistance to augment the City's financial participation. The outcome was that the State has approved $300,000 in MIF dollars (forgiveable loan to City for project) if the company creates at least 40 new jobs during the next two years and $400,000 for job training of employees. On June 2nd DEED met with the prospect in Minneapolis to provide this commitment in writing. They met with the Company's President and its CFO. It was timely because there was a Staff planning meeting of the prospect on June 3rd. The Company's Board of Director's is expected to make a final siting decision at its June meeting. Observations: Funding Source: Staff Recommendation: Informational. EDA Action: No action is required at this time. MN Proposal to Mpls Company Attachments Form Review Inbox Reviewed By Date Aaron Backman (Originator) Aaron Backman 06/03/2011 03:35 PM Form Started By: Aaron Backman Started On: 06/03/2011 02:45 PM Final Approval Date: 06/03/2011