Minutes - Council - 09/28/1999 - Laserfiche WebLink

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operates in Maple Grove, employs approximately twenty-five employees, and is anticipating hiring more with the expansion in Ramsey's Energy Park. The facility will be 31,700 square feet, with an estimated market value of $1,100,100. It is anticipated that the project will generate approximately $25,000 in net-increment per year towards the TIF District, which will be used to pay for the $94,817.00 purchase of land from Connexus Energy. The TIF District is scheduled for completion in the year 2006. Citizen Input Roger Neilsen, Officer at In-Tech, stated that they had some concern over the $10.00 hiring rate of new employees. He explained that the industry rate is $7.50 per hour at the entry level positions, but noted that the company does have positions that range from $18.00 to $20.00 per hour. Mark Nielsen, Officer at In-Tech, explained that the company makes plastic injection moldings which requires unskilled labor for the entry level position in which they will train the employee to do the job. There is Iow employee commitment, but he would like to encourage employees to stay with the company because they spend a lot of time training them. He stated that the company offers an excellent benefit package that includes full family insurance coverage. They could meet the wage, but then not cover the health benefit as they have in the past. City Attorney Goodrich explained that In-Tech is required to meet certain criteria. One of those requirements is to create one new job for each $25,000 of assistance that is received, which in the case of In-Tech, would be seven jobs at $10.00 per hour. If In-Tech fails to meet the requirements within two years they would be required to pay back 14.3 percent of the subsidy for each job they fail to meet, plus interest. The second obligation is that In-Tech has to commit to staying in the City for five years otherwise they have to pay back 20 percent of the subsidy. Mark Nielsen questioned how they will determine the seven jobs at $10.00 per hour. Will they have to be the newly created positions or seven people within the company. Mr. Mulrooney explained that the State would like cities to focus on the new jobs that are created. Roger Nielsen stated that they could guarantee three or four new jobs at $18.00 per hour in the first year as well as eight to ten jobs at $7.50 per hour. Mayor Gamec questioned if the jobs that exceed the standard be included. Mr. Mulrooney replied yes, explaining that Council makes their own decision on an appropriate hourly rate based on a project. Mayor Gamec inquired if the $10.00 per hour fit the criteria that has been used in the past. City Council/September 28, 1999 Page 7 of 30