2015.06.23 CC Minutes - Laserfiche WebLink

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June 23, 2015 15. Consideration of Request for Exemption from Lawful Gambling License —New Brighton Stockyard Days, Inc. 16. Consideration of Resolution Accepting Twin Cities Gateway Grant. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to approve the Consent Agenda as presented. Councilmember Burg thanked Bel Air PTA and Vacation Sports for their gcncicasts donations to the City. She recognized Twin Cities Gateway for their grant as well. 4 Ayes,1 Nay (Bauman) - Motion Carried Public Hearing 1. Consideration of Resolution for authorization to enter into a Grant Contract Loan Agreement, and Security Agreement regarding granting Cardiovascular Systems, Inc., a Minnesota Investment Fund loan under Minnesota Statutes, Section 116J.8731 for the purchase of equipment to be installed in their facility located at 1225 Old Highway 8 NW, following a public hearing. City Manager Lotter indicated Assistant Director of Community Assets & Development/Planning Director Gundlach would be presenting this item to the Council. Assistant Director of Community Assets & Development/Planning Director Gundlach stated on June 5, 2014 CSI was atvardW a $750,000 Minnesota Investment Fund (MIF) loan through the Department of Employment and Economic Development. The structure of the loan is such that it would be (brgivua if CSI creates 125 jobs by December 15, 2016 with base wages of at least $17 per hour, exclusive of benefits, and $26 per hour including benefits. DEED's Minnesota Investment funds are awarded to the municipality under the terms of a Grant Contract. The City then "loans" the money to the recipient via a Loan Agreement. In this case, the loan is forgiven when CSI meets their jobs goal. In addition to the City entering into a Grant Contract with DEED to receive the funds, CSI enters into a Loan Agreement with the City. The terms of the Loan Agr&ment state that CSI must pay back a pro -rated share of the funds if they fail to create 125 jobs by December 15, 2016. Additionally, CSI and the City must enter into a Security Agreement and CSI executes a Promissory Note to the City. The documents have been reviewed by the City Attorney's office, who has worked with CSI's attorney to ensure both the City and CSI's interests are protected. The Grant Contract between the City and DEED is attached for review. The Loan Agreement, Security Agreement and Promissory Note are not attached as they contain sensitive financial information. Under Minnesota Statutes, Section 116J.8731 MIF funds are considered a business subsidy, requiring a public hearing. This request complies with the City's Business Subsidy Policy, which was adopted on April 22, 2014. Staff recommended the Council authorize the Mayor and City Manager to enter into a Grant Contract with the Department of Employment and Economic Development and a Loan Agreement and Security Agreement with CSI regarding a Minnesota Investment Fund loan. Councilmember Burg thanked staff for the thorough staff report. Councilmember Strub asked how long CSI had to provide the new jobs in order to remain in compliance with the grant. Assistant Director of Community Assets & Development/Planning Director Gundlach reported that CSI was required to add 125 jobs and be maintained through December 15, 2016. She explained that CSI could begin counting new jobs since June of 2014 when the DEED agivemmt began. Councilmember Jacobsen requested further information on the City's role with regard to the DEED grant. Assistant Director of Community Assets & Developinc iA/Planning Director Gundlach indicated the City was a conduit for the grant financing from DEED. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to open the Public Hearing. Page 3 of 10 15. Exempt LawfW Gambling Lic.—NB Stockyard Days, Inc. 16. Rmkfi)n Accepting TC Gateway Grant Public Waring 1. Consideration of Resolution for authorization to enter into a Grant Contract Loan Agreement, and Security Agreement regarding granting Cardiovascular Systems, Inc., a Minnesota Investment Fund loan under Minnesota Statutes, Section 11618731 for the purchase of equipment to be installed in their facility located at 1225 Old Highway 8 NW, following a public hearing.