4.5 SR 02-16-2021
Request for Action
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent February 16, 2021 Colleen Eddy, Economic Development Director
Item Description Reviewed by
Support for Sportech LLC’s Job Creation Fund Cal Portner, City Administrator
Grant Application
Reviewed by
Action Requested
Adopt, by motion, a resolution of support for Sportech LLC’s Job Creation Fund (JCF) grant application.
Background/Discussion
Sportech, LLC is a wholly owned subsidiary of Monomoy Capital Partners, a national private equity firm with
manufacturing assets across the country. The applicant proposes to construct a 91,000sf expansion to their
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existing facility located at 10752 168 Circle NW, Elk River. The added space is expected to account for 55
new jobs and a $2.3 million equipment investment.
The project is proposed to result in an increase in local tax base, provide a direct increase in well-paying local
jobs, as well as an increase in indirect and induced jobs in the local economy. The project will result in the
retention of Sportech’s existing operations and encourage future growth within the city and state, as opposed
to the relocation of operations to one of several out-of-state locations. Sportech has indicated that local and
state participation is vital to the project occurring at this location in the reasonably foreseeable future.
Earlier tonight the EDA approved the resolution of support and at the January 26, 2021, Joint Finance
Committee meeting, the committee recommended approval of the letter of support for the Sportech JCF
Grant Application. The application requires support from the city, in the form of a resolution.
Financial Impact
N/A
Mission/Policy/Goal
The Job Creation Fund (JCF) Program provides job creation awards and capital investment rebates to
designated businesses that retain or create high-paying, full-time permanent jobs and invest in real
property improvements.
Attachments
Resolution of Support
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
City of Elk River
City Council
Resolution 21-11
A Resolution of the City Council of the City of Elk River Regarding the
Support of a Job Creation Fund Application in Connection
with Sportech, LLC
WHEREAS,
a limited liability company, which is proposing to construct an approximately 91,050 square
feet expansion to its existing facility located in the City consisting of office and
WHEREAS, the City of Elk River understands that Sportech, 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; and,
WHEREAS, the City of Elk River held a city council meeting on February 16, 2021 to
consider this matter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, that, after due consideration, the City Council of the City, hereby adopts
the following findings of fact related to the project proposed by Sportech, LLC, and its
express their approval.
1.The Developer has represented that with assistance it will locate the Project in the City
and cause the creation of 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, preserve or enhance the state and local tax base, provide a direct
increase in good paying local jobs, as well as an increase in indirect and induced jobs in the
local economy. Texisting operations
within the City, as well as encourage future growth within the City and State, as opposed to
the relocation of operations to one of several out-of-state locations.
rstanding 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 be expected to occur solely through private
investment within the reasonably foreseeable future.
This finding is based on representations of Sportech, LLC, that it is a wholly owned
subsidiary of Monomoy Capital Partners, a national private equity firm with manufacturing
assets across the country that has multiple options to relocate this facility, and/or expand at
any number of its nationwide facilities and/or adjacent locations. In addition, the City has
relied on representations of Sportech, LLC, that local and state participation is vital to the
Project occurring at this location in the reasonably foreseeable future.
-Use Plan and is
permitted in the proposed location through a conditional use permit, the City finds that the
proposed project conforms to the general plan for the development or redevelopment of the
City as a whole.
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. Growth
of both good paying manufacturing jobs, as well as commercial/industrial tax base growth
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development authority, as well as the City Council.
5. City staff is authorized to undertake all necessary steps to implement this resolution and
apply for JCF funds.
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Passed and adopted this 16 day of February, 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk