HomeMy WebLinkAbout4. Review of Job Creation in Tax Increment Financing (TIF) Districts 3.23.21City of Lakeville
Community & Economic Development
Memorandum
To: Economic Development Commission
From: Kati Bachmayer, Economic Development Coordinator
Copy: Justin Miller, City Administrator
David L. Olson, Community and Economic Development Director
Date: March 23, 2021
Subject: Review of Job Creation in Tax Increment Financing (TIF) Districts
Attached is a summary of the development projects that have received Tax Increment
Financing (TIF) assistance from the City of Lakeville since 2014. These projects include
industrial manufacturing and warehouse and distribution center businesses. The City of
Lakeville Active TIF Funded Projects spreadsheet breaks down the funding dollar amounts, job
goals, actual job creation, estimated market value and accumulated tax increment.
It is worth noting that the two most recent TIF districts have both exceeded their job creation
goals. Schneiderman’s Distribution Center (2018) had a goal of creating 40 new jobs in Lakeville
that paid at least $17.00 an hour. In 2020, the company reported creating 72 jobs and 44% of
them paid $19.00 and above (updated 2021 numbers are expected by April 1st). QA1 Precision
Products (2019) had a goal of retaining 95 jobs and creating 19 new jobs that paid at least
$14.00 an hour. In 2021, the company reported retaining 95 jobs and creating 27 jobs that all
paid $17.00 an hour and above (far exceeding the number and wage goals established in the
TIF Agreement).
Action Requested: Informational only.
Year
Awarded Business District # DEED City
Development
Cost
New Jobs
Goal
Minimum
Wage per
Hour Goal
Retained
Jobs
Goal
Actual
Retained
Jobs
Actual
New FT
Jobs
Actual Wage per
Hour
(New Jobs)
Last Year
Reported
Total FT
Employment
Pre-TIF
Estimated
Market Value
Pre-TIF
Total
Taxes
Post-TIF
Estimated
Market Value
Post-TIF
Total Taxes
YTD Received
Tax Increment
(Cumulative)
TIF Agreement
Status
2014 Menasha Packaging
(Expansion)18 $422,520 $626,018 $7,183,562 15 $15.00 221 221 25
8 @ $19-20.99
9 @ $21-22.99
7 @ $23-24.99
1 @ $31.00+
2017 246 $4,477,700 $174,943 $10,637,200 $322,304 $258,362 Active/Complete
2015 BTD (Expansion) 19 $300,000 $1,077,832 $14,198,321 100 $14.00 215 215 144
66 @ $17-18.99
41 @ $19-20.99
17 @ $21-22.99
1 @ $23-24.99
6 @ $25-26.99
1 @ $27-28.99
10 @ $29-30.99
10 @ $31.00+
2019 359 $8,436,311 $329,119 $17,382,800 $553,864 $412,337 Active/Complete
2017 Launch Properties/Menasha
Packaging II (New Build)22 $0 $1,000,000 $14,500,000 9 $20.50 60 60 11
1 @ $19-20.99
9 @ $21-22.99
1 @ $31.00+
2018 71 $130,553 $3,634 $14,229,000 $490,728 $340,183 Active/In progress
2018 Schneiderman's Distribution
Center (New Build)23 $0 $732,637 $6,500,000 40 $17.00 0 0 72
7 @ $13-14.99
14 @ $15-16.99
19 @ $17-18.99
19 @ $19-20.99
5 @ $21-22.99
2 @ $23-24.99
2 @ $25-26.99
1 @ $29-30.99
3 @ $31+
2020 72 $74,311 $1,991 $6,648,200 $207,582 $46,311 Active/In progress
2019 QA1 Precision Products Inc.
(New Build)24 $450,000 $526,015 $6,000,000 19 $14.00 95 95 27
10 @ $17-18.99
5 @ $19-20.99
3 @ $21-22.99
1 @ $23-24.99
2 @ $27-28.99
6 @ $31+
2021 122 $149,783 $2,247 $6,695,200 $203,548 N/A Active/In progress
$1,172,520 $3,962,502 $48,381,883 183 591 591 279 870 $13,268,658 $511,934 $55,592,400 $1,778,026 $1,057,193
REVISED on 3/16/2021
City of Lakeville Active TIF Funded Projects
TOTALS