HomeMy WebLinkAbout18-152CITY OF LAKEVILLE
RESOLUTION NO. 18-152
RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND APPLICATION IN
CONNECTION WITH QA1 PRECISION PRODUCTS INC.
WHEREAS, the City of Lakeville, Minnesota (the "City"), desires to assist QA 1 Precision
Products Inc. ("QA1"), an automotive parts manufacturing company, which is proposing to
construct a 100,000 -square foot facility in the City; and,
WHEREAS, the City understands that QA1, 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 held a city council work session on November 26, 2018 to consider this
matter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LAKEVILLE, that, after due consideration, the Mayor and City Council of the City of Lakeville,
Minnesota, hereby adopts the following findings of fact related to the project proposed by QA1
and its application for an award and/or rebate from the Job Creation Fund Program and express
their approval.
The City Council hereby finds and adopts the reasons and facts supporting the following findings
of fact for the approval of the Job Creation Fund Program application, which may be amended;
1. Finding that the project is in the public interest because it will encourage the growth of
commerce and industry, prevent the movement of current or future operations to locations
outside Minnesota, result in increased employment in Minnesota, and preserve or enhance
the state and local tax base
• This project will encourage growth of a successful manufacturing company that has been
operating in Minnesota for 25 years and in Lakeville for 23 of those years.
• This project will help retain a Lakeville, Minnesota business in the state, as the company
is considering location opportunities in South Dakota and Indiana due to cost savings.
• This project will allow QA1, a Lakeville company for 23 years, to expand in Lakeville and
potentially grow its workforce from 95 current employees to an expected 139 employees
(a net gain of 44 employees with an average annual starting salary of $40,600) over the
next 5 years.
• This project will increase the state and local tax base by adding a proposed 100,000 -
square foot industrial building to Interstate South Logistics Park in Lakeville. It will also
create opportunity for new businesses to move to Lakeville or existing businesses to
expand in the community through the eventual sale of QA 1's existing buildings (57,130
square feet and 28,192 square feet).
2. Finding that the proposed project, in the opinion of the City Council, would not reasonably
expected to occur solely through private investment within the reasonably foreseeable
future.
• This project is driven by projected company growth, customer demands and current
capacity constraints in QA1's existing locations. The Job Creation Fund program is
needed to offset the company's high up -front investment in Minnesota (compared to
South Dakota or Indiana) and will provide a stronger business case for the project to
occur in Lakeville.
• The cost of locating this project in Minnesota versus South Dakota or Indiana is
estimated to create a $3,000,000 financing gap over a ten-year period.
3. Finding that the proposed project conforms to the general plan for the development or
redevelopment of the City as a whole.
• The City of Lakeville's Strategic Plan for Economic Development identifies a focus on
business retention and expansion and workforce issues. This project will limit the loss of
an existing business, ensure that Lakeville is the first choice for business expansion, and
will create new quality jobs in the city.
• The proposed project location is zoned I-1, Light Industrial; therefore, anew
manufacturing facility in Interstate South Logistics Park conforms to the city's
Comprehensive Land Use Plan for development.
• The newly proposed 100,000 -square -foot building has an estimated value of $7,500,000,
which will greatly increase the future tax valuation in that area of Lakeville's industrial
park.
4. Finding that the proposed project will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the redevelopment or development of the project by
private enterprise.
• This project would be the third building constructed in Interstate South Logistics Park
and will help to spur additional growth and development by private enterprise.
ADOPTED by the Lakeville City Council this 3rd day of December 2018
J
Douglas . Anderson, Mayor
Charlene Friedges, City _ L'1 Wk