4.5. SR 08-19-2019 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent August 19, 2019 Amanda Othoudt,ED Director
Item Description Reviewed by
Support for Distinctive Iron's,Job Creation Fund Cal Portner, City Administrator
grant application Reviewed by
Action Requested
Approve,by motion, a resolution of support for Distinctive Iron's Job Creation Fund UCF) grant
application.
Background/Discussion
Distinctive Iron is a growing metal design and fabrication business located at 19128 Industrial Blvd
NW. They propose to purchase property located at 15970 Jarvis Street NW, to renovate the building and
construct a 4,680 sf indoor paint facility.
Distinctive Iron will be investing$1,530,000 to purchase,renovate and construct the new facility, and
retain 14 full-time and 2 part-time jobs within the city. They anticipate the growth of 5 more full time
jobs over the next two years. This project will add approximately$135,000 in taxable value to the city and
increase taxes by about$4,944 annually. The business prides itself in contributions to the local
community through hiring local and patronizing local businesses.
Their $50,000 JCF request will support the investment. Without gap financing for this project by the city,
county and state,Distinctive Iron would not be able to expand their operations. Being a women-owned
business, a minimum investment of$250,000 and five new full-time jobs are necessary to receive the
funding level requested.
The application requires support from the EDA,in the form of a resolution.
Financial Impact
N/A
Attachments
■ Resolution of Support
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAMIRE1
City of
Elk City of Elk River
Wver City Council
Resolution 19-
A Resolution of the City Council of the City of Elk River Support of a Job
Creation Fund Application in Connection with Hemmer Companies, LLC
WHEREAS, the City of Elk River Minnesota (the "City"), desires to assist Hemmer
Companies, LLC a limited liability company (the "Developer"),which is proposing to
expand its current fabrication and metal design business in the City through the acquisition,
renovation, expansion and equipping of an existing building located at 15970 Jarvis Street
NW in the City (the "Pro)ect") ; and,
WHEREAS, the City of Elk River understands that Hemmer Companies,LLC through
and with the support of the City,intends to submit to the Minnesota Department of
Employment and Economic Development an application for an award and/or rebate from
the Job Creation Fund Program ("JCF"); and,
WHEREAS, the City of Elk River held a city council meeting on August 19, 2019 to
consider this matter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River,Minnesota, as follows: after due consideration, ,hereby adopts the following findings
of fact related to the project proposed by Hemmer Companies, LLC and its application for
an award and/or rebate from the Job Creation Fund Program and express their approval.
1. The Developer has represented that with assistance it will locate the Project in the
City and cause the creation of approximately 5 new jobs in the City. The City finds that the
Project is in the public interest because it will encourage the growth of commerce and
industry, prevent the movement of current or future operations to locations outside
Minnesota, result in increased employment in Minnesota, and preserve or enhance the state
and local tax base
2. Based on the Developer's request for JCF funding and other assistance from the City
and Sherburne County and the City's understanding that the Project would not be located
within in the City if such funding assistance is not granted, the City finds that the Project
would not reasonably expected to occur solely through private investment within the
reasonably foreseeable future.
3. Because the Project is located in an area of the City guided for industrial uses, the
City finds the proposed project conforms to the general plan for the development or
redevelopment of the City as a NATUREJ
4. The City finds that because the proposed Project is on properly zoned property and
is a designated use in the City's comprehensive plan, the City finds that the proposed
project will afford maximum opportunity, consistent with the sound needs of the City as a
whole, for the redevelopment or development of the project by private enterprise.
5. City staff is authorized to undertake all necessary steps to implement this resolution
and apply for JCF funds.
Passed and adopted this 191h day of August 2019.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREI