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HomeMy WebLinkAbout2012 [08] Aug 15 August 15, 2012 Page 1 of 2 Pursuant to due call and notice thereof, the St. Joseph City Council met in special session on Wednesday, August 15, 2012 at 4:00 PM in the St. Joseph City Hall. Members Present: Mayor Rick Schultz, Councilors Renee Symanietz, Dale Wick, Steve Frank, Bob Loso and City Administrator Judy Weyrens Citv Representatives Present: EDA Consultant Cynthia Smith-Strack Others Present: Mike McDonald, Telizia Callaway Prosoective Business: EDA Consultant Cynthia Smith-Strack stated that the purpose of the special meeting is to discuss a potential business that is considering locating in St.Joseph and the possibility of utilizing Tax Increment Financing(TIF)or Tax Abatement. Smith-Strack stated that she is not requesting approval of TIF, rather authority to offer the incentive to the business which will then result in the required application and hearing. The proposed business is entitled Recombinetics which is a biomedical research company that clones pigs for medical research, specifically for diabeUes. The Company is a startup company that is looking at purchasing a site in the Buettner Business Park. They proposed to invest over eight(8)million in the community with remodeling an existing building (4.8M)and construct an addition(3.5M). The business will start with 15 jobs with three at$ 155,000, three at$90,000, six at$60,000 and three at$ 35,000. � Their total payroll will exceed one million. The facility will be a high end lab that wilt be monitored and secure. MN DEED has expressed interest in locating this company within Minnesota; however, they do not have funding. The business is working with Great River Financial, Stearns Electric and a broker who will lease the facility. The company has a goal to be located and operating by the end of 2012. Smith-Strack stated that it is an aggressive goal, but if they complete plans and applications it is feasible. The City was made aware of this potential business through the Greater St. Cloud Corporation who has also been part of the meeting process. Recombinetics has indicated that they cannot locate with financial assistance and are looking to utilize TIF and/or Tax Abatement. Smith-Strack stated that based on the numbers provided by the company, the TIF could be as much as$910,000(9 years)and at the end Tax Abatement could be added in the amount of$ 380,000(10 years). She clarified that the numbers are based on projections and the actual ' TIF would be issued on factual numbers and completing the qualifying process. Wick questioned the WAC/SAC fees and if they have requested to be waived. Smith-Strack stated that they have not requested such, but they could be reimbursed to the City through the TIF. She stated that she would not recommend utilizing both TIF and Tax Abatement as the TIF is a generous subsidy. ' Frank stated that due to the short notice and lack of information he is unprepared to make a decision on this matter. Smith-Strack stated that she is not requesting approval to issue TIF or Tax Abatement, rather, the company is looking for a proposal as to what the City would offer, knowing that they would still have to qualify and is subject to a public hearing. City staff cannot make a proposal of TIF or Tax Abatement without support of the Council. The City could also offer utilization of the Revolving Loan Fund administered by the City(maximum $20,000 available)and State MIF funds. When questioned if the property has any outstanding assessments, Smith-Strack stated that there is approximately$24,441 in past assessments that like the WAC/SAC would be paid through the TIF. Wick made a motion to authorize staff to submit a proposal for the Recombinetics project to include TIF, MIF and the Revolving Loan Fund. Further, if the proposal is close and Tax Abatement is necessary it will be considered, but not guaranteed. The motion was seconded by Schultz and passed unanimously. Closed MeetinQ: Wick made a motion to go into closed session pursuant to MN Statute 13d.05 subd 3 to discuss labor strategy regarding the AFSCME Labor Agreement. The motion was seconded by Symanietz and passed unanimously. I I August 15, 2012 Page 2 of 2 Adfourn: Wick made a motion to adjourn at 5:00 PM; seconded by Schultz and passed unanimously. Judy eyr ns nistrator This page intentionally left blank