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JW1- Of Report Number 14 -154 Agenda Section VII -1 v Council Meeting Date June 10, 2014 the city that works for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Public hearing regarding an application to the Minnesota Investment Fund for Cardiovascular Systems, Inc. (CSI); and consideration of a resolution authorizing the execution of application materials for a MIF loan of $750,000 to CSI. DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director Qoz- CITY MANAGER'S APPROVAL: No comments to supplement this re ort Comments attached Recommendation: Staff recommends ffi av e City Council take the following actions: o Conduct the public hearing to consider an application by the City on behalf of Cardiovascular Systems, Inc. to the Minnesota Department of Employment and Economic Development - Minnesota Investment Fund. o Approve the attached resolution authorizing the execution of MIF loan application materials in conjunction with loan of $750,000 to CSI. Legislative History: June 2, 2014: The City Council approved a Contract for Private Redevelopment with CSI and Ryan Companies for construction of a new corporate headquarters building in New Brighton Exchange. At the same meeting, the City Council also adopted a resolution of support for CSI's application to DEED's Job Creation Fund (JCF). Financial Impact: See the report for details. Explanation: This item is related the CSI expansion project. As part of the company's planned expansion in New Brighton Exchange, the City and CSI are seeking assistance of $750,000 from the Minnesota Department of Employment and Economic Development (DEED) - Minnesota Investment Fund. This program provides funds to local communities that can loaned to eligible businesses (like CSI) that want to expand and create jobs. As we have discussed previously, DEED will provide the funds to the City, which will in turn make a loan to CSI. CSI will use the loan proceeds to buy equipment ($500,000) and pay for certain site /geotechnical costs ($250,000). Additional information on the MIF program is attached, along with a copy of CSI's Initial Application. The first step in the process involved the submission of an Initial Application, which was done on May 29, 2014. The next step requires the City to conduct a public hearing and adopt a resolution (June 10, 2014) authorizing the execution of certain loan documents. Once this is completed, the City will need to submit supplemental information on the project; conduct I: \COUNCIL\REPORTS\2014 \Community Development \6 -10- 2014 \MIF Application (Public Hearing).doc