Loading...
HomeMy WebLinkAboutItem 06.kAugust 14, 2015 Item No. SSB Manufacturing Job Creation Fund Application August 17, 2015 Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to approve the attached resolution of support for the SSB Manufacturing Company Job Creation Fund application. Passage of this motion will result in the submittal of a Job Creation Fund application on behalf of SSB Manufacturing Company to the Minnesota Department of Employment and Economic Development. Overview SSB Manufacturing Company is in the process of completing an application to be submitted to the Minnesota Department of Employment and Economic Development (DEED) for the Job Creation Fund Program. They are seeking a resolution of support from the City of Lakeville as a part of the application process. SSB Manufacturing Company is a mattress manufacturer and is considering construction of a 240,000 square foot manufacturing facility in the Interstate South Logistics Park located in the southwest corner of County Road 70 and Dodd Blvd. The company plans to create 200 new jobs over the next two years. The Job Creation Fund Program provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed eligible to participate typically receive benefits based on actual jobs created and for constructing or renovating facilities or making other property improvements. The program is available to businesses engaged in manufacturing, warehousing, distribution, technology -related industries, and other eligible activities. Companies must work with the city where a project is located to apply to DEED to receive designation as a Job Creation Fund business. Staff plans to present detailed information on this proposed project at the September 8th HRA Meeting. Primary Issues to Consider • Will this application limit the ability of other Lakeville business expansions to qualify for the program? No, each application is evaluated on its own merits. Supporting Information • Resolution of Support for SSB Manufacturing Company's Job Creation Fund application • Job Creation Fund Program overview David L. Olson, Community & Economic Development Director cc: Chris Schastok, CBRE; Emily Johnson, DEED; John Shoffner, DEED Financial Impact: $ 0 Budgeted: Y/N Source: Envision Lakeville Community Value: Diversified Economic Development CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND APPLICATION ON BEHALF OF SSB MANUFACTURING COMPANY. WHEREAS, the City of Lakeville, Minnesota (the "City"), desires to assist SSB Manufacturing Company, a business corporation which is proposing to construct a manufacturing facility in the City; and, WHEREAS, the City of Lakeville understands that SSB Manufacturing Company, through and with the support of the City, intends to submit to the Minnesota Department of Employment and Economic Development an application for an award and/or rebate from the Job Creation Fund Program; and, WHEREAS, the City of Lakeville held a City Council meeting on August 17, 2015, to consider this matter. NOW, THEREFORE, BE IT RESOLVED that, after due consideration, the Mayor and City Council of the City of Lakeville, Minnesota, hereby express their approval of the project proposed by SSB Manufacturing Company and its application for an award and/or rebate from the Job Creation Fund Program. ADOPTED this 17TH day of August, 2015, by the City Council of the City of Lakeville. CITY OF LAKEVILLE M ATTEST: Charlene Friedges, City Clerk Matt Little, Mayor Job Creation Fund Overview The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed eligible to participate may receive up to $1 million for creating or retaining high - paying jobs and for constructing or renovating facilities or making other property improvements. In some cases, companies may receive awards of up to $2 million. Eligibility and Requirements The program is available to businesses engaged in manufacturing, warehousing, distribution, technology - related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business. To be designated as a Job Creation Fund business, a business must, at minimum: • Be engaged in an eligible business activity • Obtain local government support for their project via council resolution • Invest at least $500,000 in real property improvements within one year of becoming a designated Job Creation Fund business • Create at least 10 new full-time permanent jobs within two years of becoming a Job Creation Fund business while maintaining existing employment numbers • Pay at least $12.45 in wages and benefits in 2014, adjusted annually based on 110 percent of federal poverty guidelines. The level will be $12.61 starting Jan. 1, 2015. • Have other location options outside of Minnesota • Cause no undue harm to Minnesota business competitors • Certify that the project would not occur without Job Creation Fund assistance Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation Fund. Companies that meet eligibility requirements must sign a business subsidy agreement with DEED to meet job retention, creation, wage, and capital investment requirements. The following benefits may be available once a business meets the conditions of its agreement and provides proof of performance: • $1000 per year per job created for jobs paying at least $26,000 in cash wages • $2000 per year per job created for jobs paying at least $35,000 in cash wages • $3000 per year per job created for jobs paying at least $45,000 in cash wages • Up to a 5 percent rebate for real property improvements for businesses located in the Twin Cities Metro • Up to a 7.5 percent rebate for real property improvements for business located in Greater Minnesota