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HomeMy WebLinkAboutItem 07December 17, 2018 Item No.________ RESOLUTION TO SUPPORT QA1 PRECISION PRODUCTS, INC.’S MINNESOTA INVESTMENT FUND APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT Proposed Action Staff recommends adoption of the following motion: Move to approve the resolution in support of QA1 Precision Products, Inc.’s Minnesota Investment Fund application to the Minnesota Department of Employment and Economic Development. Overview QA1 Precision Products Inc. is requesting an application be submitted to the Minnesota Department of Employment and Economic Development (DEED) for the Minnesota Investment Fund (MIF) program. The application is requesting up to $100,000 from the DEED MIF program, which provides loan financing to a company via the community in which the project will occur. The MIF assistance is based upon capital investment and the creation of new full-time equivalent jobs within 2 years. The funds would be granted to the City of Lakeville and then provided as a forgivable loan to QA1. The loan is recommended to be forgiven if the company meets the capital expenditure, job and wage requirements. The proposed QA1 expansion project to build a new 100,000-square-foot manufacturing facility in Lakeville’s industrial park would result in the retention of 95 full-time jobs and the creation of 44 full-time jobs in Lakeville over the next five years with an average wage level of $40,600 per year, not including benefits. The company has also requested Tax Increment Financing assistance and submitted a Minnesota Job Creation Fund application to DEED. Primary Issues to Consider Is this proposed project in the public interest? QA1’s expansion project will provide additional jobs and tax base in the community. Supporting Information • Resolution in support of QA1 Precision Products, Inc.’s Minnesota Investment Fund application to the Minnesota Department of Employment and Economic Development • Proposed site location map Financial Impact: $ 0 Budgeted: Y☐ N☒ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David Olson, Community and Economic Development Director DEED CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION AUTHORIZING SUBMITTAL OF A MINNESOTA INVESTMENT PROGRAM FUND APPLICATION ON BEHALF OF QA1 PRECISION PRODUCTS INC. BE IT RESOLVED that the City of Lakeville act as the legal sponsor for the project contained in the Minnesota Investment Fund Application to be submitted on or about December 17, 2018 and that Mayor Doug Anderson and City Administrator Justin Miller are hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of QA1 Precision Products, Inc. BE IT FURTHER RESOLVED that the City of Lakeville has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to administer the proposed project. BE IT FURTHER RESOLVED that the City of Lakeville has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the State, the City of Lakeville may enter into a Grant Contract with the State of Minnesota for the approved project, and that the City of Lakeville certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the Grant Contract and described in the Project Compliance Certification of the Application. AS APPLICABLE, BE IT FURTHER RESOLVED that the City of Lakeville has obtained credit reports and credit information on QA1 Precision Products, Inc. and Betty Jordan and James Jordan, Jr.. Upon review by the City of Lakeville and Campbell Knutson, no adverse findings or concerns regarding, but not limited to, tax liens, judgments, court actions, and filings with state, federal and other regulatory agencies were identified. Failure to disclose any such adverse information could result in revocation or other legal action. NOW, THEREFORE BE IT RESOLVED that Mayor Doug Anderson and City Administrator Justin Miller, or their successors in office, are hereby authorized to execute the Grant Contract and amendments, thereto, as are necessary to implement the project on behalf of the City of Lakeville. I CERTIFY THAT the above resolution was adopted by the City Council of the City of Lakeville on December 17, 2018. ADOPTED by the Lakeville City Council this 17 day of December, 2018. ______________________________ Douglas P. Anderson, Mayor ______________________________ Justin Miller, City Administrator _________________________________ Charlene Friedges, City Clerk QA1 Proposed Project Site Property Information October 25, 2018 0 450 900225 ft 0 130 26065 m 1:4,800 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Proposed Project Site 8 Acres Schneiderman's Distribution Center Future 150,000 SF Spec Building