6.4. SR 12-21-2009 - Laserfiche WebLink

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Ji Elk REQUEST FOR ACTION River To Item Number Ma or & Ci Council 6.4. Agenda Section Meeting Date Prepared by Community Development December 21, 2009 Catherine Mehelich, Director of Economic Develo ment Item Description Reviewed by Consider Extending Time fox Meeting Wage & Job Goals Lori ohnson, Ci Administrator Under the Tax Abatement and Business Subsidy Agreement for Reviewed by Medical Extrusion Technologies Project -Public Hearing Action Requested Following the public hearing, the Council is asked to authorize an extension of up to two years to Tom & Rikki Bauer for meeting the wage and job goals outlined in the Tax Abatement & Business Subsidy Agreement for the Medical Extrusion Technologies Project. Back_.ground/Discussion In August 2005, Tom & Rikki Bauer entered into a Tax Abatement & Business Subsidy Agreement with the City fox the construction of a 20,000sf light industrial facility, and committing to create 23 full time jobs at a wage of $15/hour by October 4, 2008. Under the agreement the developer is eligible to receive tax abatement fox a portion of the land acquisition cost up to $114,998 provided on apay-as-you-go basis (commencing 2008). The developer's company, MET, occupies half of the building and the other half has been available for lease. Under the MN Business Subsidy Law, public agencies are required to report annually on the progress toward job and wage goals for two years, or until the goals are met, whichever is later. At the end of the two year period the developer reported having created 9 jobs. In November 2008 the City Council approved a 1-year extension for the developers to meet the job and wage goals. As of October 2009, the developer has created 10 full time jobs at a wage of $18/hour. The attached letter from Medical Extrusion Technologies indicates the developer's response in their attempt to achieve the wage and job goals over the past year. Due to economic conditions, the developer is requesting the City's consideration of up to a two year extension to achieve these goals. The request would extend the deadline to October 2011. The developer has been invited to the Council meeting to answer any questions. State statutes allow an extension on meeting the goals, following a public hearing by the granting agency. Staff recommends that the City Council authorize a two year extension for meeting the job and wage goals established in the agreement. Financial Impact The agreement allows that if goals are met in part, the City has the option to reduce the subsidy on a prorated basis to the jobs created, or consider an extension of the term to meet the goals. To date the S:\EDA\BUSINESS SUBSIDY\MET\MET Extension Action Requested 12 2109.doc