7.2. SR 01-17-2012 - Laserfiche WebLink

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In October 2008, Sportech, Inc. completed their fifth expansion into their existing 96,000 square foot state-of--the art manufacturing facility located in Northstar Business Park. The city received a $500,000 grant in October 2008 from the Minnesota Department of Employment and Economic Development (MNDEED) Minnesota Investment Fund program. The funds were subsequently loaned to Sportech, Inc. by the city to help them construct their current headquarters in Northstar Business Park. Per the business subsidy agreement, Sportech was to retain 64 full-time employees and create 25 new full-time jobs at a base wage of not less than $12.00/hr within two years of building occupancy. In October 2010, Sportech added 14 full-time employees and requested aone-year extension from MNDEED to reach their job creation and wage goals. The requested was approved by MNDEED in November 2011. As of October 2011, Sportech had created 33 full-time jobs bringing their full-time employee total to 97 employees, exceeding their job creation goals. Sportech has continued to add full-time jobs and currently has 102 full-time employees. To close out the grant with DEED, the City Council must hold a public hearing to discuss the outcomes of the grant and allow citizens the opportunity to present their views. FINANCIAL IMPACT The city has received payment for the entirety of the loan. Per the agreement with DEED, the city will retain the $500,000 to be used as a revolving loan fund for future economic development purposes. Action Motion by Second by Vote Follow Up N:\Public Bodies\City Council\Council RCA\Agenda Packet\O1-17-2012\Sportech.docx