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90-1536 + -�1GINAL. ' ^ � . � ' Council File � "/ 3�D Green Sheet ,� 11119 RESOLUTION �`� C TY OF SAINT PAUL, MINNESOTA d� j , Presented By . Referred To - Committee: Date RESOLUI'ION APPRWING APPLICATION OF CHARaO PRII�ING, INC. FOR CIASSIFICATION OF P'ROPERTY IACATED IN � SAINT PAUL RIVERFRONr ENPERPRISE ZONE AS QASS 4d EMPZ,OYNIENr PROPF.�t7.'Y Wf�REAS, rgo Printing, Inc. (the "Canpany") filed with the City Clerk an Application for classification of its property located in the northwesterly portion of Fm 're Builder Ir�dustrial Park as Employment Property pursuant to Minnesota Stat tes Section 273.1313 and the Saint Paul Riverfront Enterprise Zone Program ( e "Program"); and Wf�RF�S, e new investmerit, tax classification, and State tax credits as set forth in detail i.n the July 6, 1990, Staff Report will result in the creation of 1 new positions in Saint Paul with the acquisition and new oonstruction o a 1.9 acre site in Fmpire Builder Industrial Park l�y Chargo Printing, Inc. and Wf�REAS, ere has been presented to and considered at this meeting a Partici�tion greement betw�een the City and the Company whereby the Company covenants res cting the co�npletion of property im�rovesnents; and WF�REAS, e City Clerk duly published on June 19, 1990, in the Saint Paul Legal Le ger, the official newspaper for the City a notice of public hearing before the City Council upon the Ccxnpany's Application; and WHEREAS, istrict 7 Planning Council and District 6 Planning Council have reviewed ancl r onmrended approval of the Application; and WI�REAS, e City Council conducted a public hearing on July 19, 1990, upon the Appl 'cation at which hearing opportunity was provided for the Applicant, the County Assessor, representatives of affected taxing authorities and ariy taxpa r of the City or me�nber of the public to present their vie�ws orally or in iting at or before the hearing, anc7 having duly considered the testimoriy and itten views presented at the hearing and the Application, staff re�ort d draft Participation Agreement; naw therefore, be it WHEREAS, the Housing and Econoanic Development CaYmittee approved the Application on uly 11, 1990; and W�.S, e City Council approved the Application on July 19, 1990; naw therefore, be 't ` Q� IGlNAL f � ���'�s�� RESOLVED by the Council of the City of Saint Paul that it hereby determines th t the Application of Chargo Printing, Inc., the property improvements, retained and new jobs and tax benefits proposed meet the objectides of e Saint Paul Riverfront II�terprise Zone Program. RFrSC[,VED �iER that the City Council additionally finds and determines that the oonst ction of the new facility (1) is reasonably likely to create new employment in the City; (2) will not have the effect of transferring existing �nplo t fran one or more other cities within Minnesota; (3) will result in an�i crease in market value of the employment property of $1 million which is .0001 $ of the market value of all taxable property in Saint Paul; and (4) should not result in the reduction of the assessed value of existing property with' the City owned by Applicant. RESC�VID �IIER that the Amended Application and employment property reclassificat on thereby proposed is hereby approved and the City Clerk is directed to tr snit the Application together with a certified oopy of this resolution t the Commissioner of Trade and Econanic Development for consideration final approval. RE9Cg,VED �iER that the Participation Agree�aent between the City and the Applicant s hereby approved, and the proper City offivers are authorized to sign the e on behalf of the City, and upon its signature by the ' Applicant to t �anit Attachment C of said Agre�ment to the Crnmissioner of Trade and Eco ic Developnent for signature by the Co�rmissioner or designee upon final app val of the Application. Navs Absent Reguested by Department of: mon o w �► !� 0 a �eu By. ' � 0 Adopted by Council: Date A�� �D 1990 Form Approved by City Attorney � Adoption rtified b Council Secretary gy. ��----- �. ��] BY� Approved by Mayor €or Submission to Approved Mayor: Date �U6 3 � 990 Council . � gy; �'� "�� 8y: '��%`''� �UBt 6SNED �E Q - 819 g0 . . - . . • . ' �"-l0-�,s3� DEPART ENT/OFFICE/COUNCIL DATE INITIATED NOi _11119 st. Paul Port Autho •t s/�7/so GREEN SHEET CONTACT PERSON 8 PHONE INITI ATE �NITIAUDATE /' Q� �DEPARTMENT DIRECTOR �CITY COUNCIL David M. Stokes � ` 'S�p O ASg�aN �CITYATTORNEV �CITYCLERK NUMBER FOR MUST BE ON COUNCIL AQENDA BY(DAT ROUTING �BUDGET DIRECTOR �FIN.B MGT.SERVICES DIR. t�Ll $t 2.8, 1990 ORDER �MAYOR(OR ASSISTANn , � Council Research TOTAL#OF SIGNATURE PAG S (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REOUE3TED: Approval of City Council ftesolution amending the application for Char�o Printin� in the Riverfront Enter rise Zone for additional credits. RECOMMENDATIONS:Approve(A)or ReJ (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS: _PLANNINQ COMMISSION _ IVIL SERVICE COMMISSION �• Has this personlfirm ever worked under a contract for this department? ' _CIB COMMITfEE _ YES NO 2. Has this person/firm ever been a city employee? _STAFF — YES NO _DISTRICT COURT _ 3. Does this personffirm possess a skfll not normally possessed by any current city employee? SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO Explain ell yes answera on separate sheet and attach to grsen shest Econamic Dav�lopm nt INITIATIN�PROBLEM,ISSUE,OPPORTU TY(Who,Whet,When,Where,Why): Enterprise Zone cre ts will be used to assist Char�o Printin� in the construction of a new facility in Empire Bu lder Industrial Park. ADVANTAOE8 1F APPHOVED: The company present ;� has 30 employees and will create 20 new positions within the next two years. The project Fvill incre se the tax revenues generated in the Scattered Site Tax Increment District, will result i a new facility on land that is currentl,y unimproved and will allow the company to conti ue to grow and exgand in Saint Paul. DI3ADVANTAOE3 IF APPROVED: 4��`��O � ��0�,0 Pv�'2 �,��`� c DISADVANTACiE3 IF NOT APPROVED: ��uh�il ��i��h CN1tlC AUG ��� TOTAL AMOUNT OF TRANSACTION $ 1 76O OOO COST/REVENUE BUDGETEp(CIRCLE ONE) YES NO FUNDING SOURCE P�vate Fi ancin and State Tax ACTIVITY NUMBER FINANCIAL INFORMATION:(EXPLAIN) CP@CI1tS ,�-'""�.,, �+ , . ��yo-i.�� ,--,,,�.,.-,� � s � �, � , � �� � ��V t � � � FAX(612) 223-5198 PORT AUTHORIN F THE CIN OF SAINT PAUL TOLL FREE(800) 328-8417 � � 1900 LANDMARK TOWERS • 345 ST, PETER STREET • ST. PAUL, MN 55102-1661 � PHONE(612) 224-5686 August 16, 1990 Mr. Dani 1 Cornejo, Director Planning & Econanic Developnent Department City of t. Paul 13th F1 r City Hall Annex St. Paul Minnesota 55102 SU&7ECT: AMENDID APPLICATION FOR II�ERPRISE ZOI� Q2IDITS C�RQO PRIN1.'IlQG� INC. Dear Mr. Cornejo: We suani herewith for your review and referral to the Office of the Mayor, C ty Council and City Attorney's Offic�e details pertaining to the the iss ce of Enterprise Zone Credits to Chargo Printing, Inc. The amended plication increases the credits from $375,OOQ to $490,000. �he cr ts will be in the form of State income tax credits, including $460,000 in debt financing credits and up to $30,000 in new employee credits. Also, the project size has increased fran 1.9 acres to 2.2 acres the building size has increased fran 21,000 to 24,000 square feet. Enterpri Zone credits will be used to assist in the construction of a new man acturing facility in Fmpire Builder Ir�dustrial Park. �he ca� pany pr ently has 30 enployees arid will create 20 new positions within the next two years. In addit'on to the staff report to the Riverfront Comnission, we are at- - taching e Participation Agreement and a draft copy of the proposed City Co il resolution which authorizes the execution of the ParticiFa- tion Agr �ment and the suk�nittal of the amended proposal to the Depart- ment of ade and Econanic Developnent. Your e 'tious handling of this matter wi11 be appreciated. Yours truly, � s J. lus P ident JJB:DMS: as Attach. cc: Mayo Scheibel � P O R T �.�0���-,�� � � AUTHORITY - OF THE CITY OF ST. P UL Memorondum TO: Riverfro t Developnent Task Force DATE: August 17, 1990 FROM: David M. Stoke , � SUBJECT: �g� SE ZCI� APPZICATI�I FC�2 (I� PRIl�Tl'II�1G Statunarv Port Au ority staff are requesting Chargo Printing's application for En- terprise Zone credits be increased from $375,000 to $490,000. Back ou An appli tion froan Chargo Printing was approved tyy the Riverfront Develognent Task For on July 10, 1990. Since that time, Chargo Printing's project has expanded 'n several ways. The cam�ny is buying a larger site (2.2 acres ver- sus 1.9 cres), the building size has increased from 21,000 to 24,000 square feet, an it is buying more equignent, which will lead to additional jobs. �e earl'er application mentioned ten new jobs, and the amended apglication identif i s twenty new jobs in the first two years. The comgany currently employs 3 people. Due to e fixm's larger project, Port Authority staff are recoatunending the increase in IIzterprise Zone credits. As the Riverfront Cc�anission and Task Fbrce may be aware, the Enterprise Zone prograan has been discontinued by the state and will terminate at the end of October, 1990. Before approving addi- tional cr � its for Chargo, staff have closely reviewed other potential En- terprise one applicants and have reserved sufficient credits for these other co�npanies Attached s an amerx3ed application and staff report. DMS:las Attachmen 5/Q3ARR � • ^ �p�,CS'3lo PORT �� � � AUTHORITY OF THE CITY OF ST. P UL Memorandum TO: Riverfr t Developnent Task Force DATE �gu� 20, 1990 1 FROM: David M. Stoke SUBJECT: s��r (� . II�. Al�D� 7,� APPLIC1slTIQ�1 A. PRO ID F�IPLOYMETTP PROPERTY Chargo P inting Inc, proposes that approximately 95,958 sq.ft. (2.2 acres) of land be oquired fran the Port Authority of the City of Saint Paul in Eanpire Builder ndustrial Park be determined eligible for reclassification as employ- ment pro rty through the City's Riverfront Enterprise Zone program. The property will not be forn�ally reclassified for tax purposes as an alternative contribu ion of infrastructure improveanents is being provided in lieu of local property tax reduction. This alternative vontribution has been approved by the Min esota Department of Trade and Econamic Developrent. T'he property descript on is attached. This property is identified by the Ramsey County Tax Departme t through the following property identification n�unbers: 31-29-22-22-0003 31-29-22-22-0004 31-29-22-22-0086 This pro rty is presently tax exempt and �aned by the Port Authority. The property is within the City of Saint Paul's Scattered Site Tax Increnent Dis- trict. B. IN�R AI�ID PROP'OSID USE Chargo P inting, Inc. is a high-�uality, meditan format, lithographic printing canpany. Their firm is currently leasing 9,000 square feet of space at 1336 Energy P rk Drive. 'I'he firm does four-color printing for sheet-fed printing up to 28 inches wide. Chargo P inting, Inc. will construct a 24,000 square foot printing facility on the site. The investment in the project, including land, building, and equi�- ment wil total approximately $2.5 million. t . ' '' ��0�/,53� � Staff R rt August 2 , 1990 Page -2- C. Pit�0.7 INCREASID MARRET VALUE The mark t value will increase by the amount of the improve�nents plus the land value s'nve the property has not generated ariy taxes while under Port Authorit awnership. The develognent will result in an estimated market value of $1.1 illion which is .00014 of the market value of all taxable property in St. Paul The project is within the City of Saint Paul Housing and Redevelop- ment Au ority's Scattered Site Tax Increment District. This project will have a sitive impact on the District's revenues. D. RE7� AND NII�1 JOBS The com has 30 full-time enployees who will be retained in Saint Paul with the oons ruction of the new facility. In addition, the cangam estimates they will hir 20 new employees within the next two years and a total of 26 within the five years allawed under the F�nterprise tax credit program. The company has ente ed into a City of Saint Paul IInployment and Training Participation Agreemen . E. PARTICIPATION AGREE�TP A draft articipation Agreanent has been negotiated with the following tax benef its: 5-Year Zbtal Stat New F�nployee Credits $30,000 Stat Debt Financing Credits $460,000 Z'his re esents a private-to-public ratio of approximately $5.00 private per $1 publi tax reduction or credit. The original City Council guidelines call for a mi 'm�nn 8:1 private-to-public investment ratio and a maximun of $10,000 per retai ed job and $20,000 per new job. This project represents a credit of 12:1 for ivate-to-public investment, plus $4,000 per retained job and $8,000 per new j b. F. FII�IDINGS Chargo Pr'nting, Inc.'s application proposes to create up to 26 new jobs, none of which would be a transfer fran another Minnesota municipality. The proposal will not result in the abandorment or d�molition of other property awned by the applica�t in Saint Paul, whicli could potentially cause a reduc- tion in e assessed value of existing property within the City. The sgace Chargo Printing is currently leasing will be used by the building's owner as that avne 's manufacturing facility exparids as well. ' : �" �����3� ( , Staff R rt August 2 , 1990 Page -3- ' G. TION Z'he staf of the Port Authority of the City of Saint Paul recamrer�ds the City Council prove the attachecl Participation Agreement for Chargo Printing, Inc. as draft . Staff further reca�c�ends the City Council determine that the project s eligible for �nployment property reclassification and that Attach- ment C o the Participation Agreenent be forwarded to the Commissioner of Trade an Eoonanic Developrent. DMS:las . .