The URL can be used to link to this page

96-1430 Council File # ��'/�� ^ -^ r ,'_ r r -- Green Sheet # U � RESOLUTION CITY OF SAINT PAUL, MINNESOTA /p / Presented By Referred To Committee: Date 1 WHEREAS, the Legislature of the State of Minnesota has established a Enterprise Zone Incentive Grant 2 Program to help leverage job creation resources for residents in the State-designated Enterprise Zone; 3 and 4 5 WHEREAS, the State's Department of Economic Security is responsible for administering this program 6 through certain designated municipalities; and 7 8 WHEREAS, the City of Saint Paul, by virtue of its recognition as a Federal Enterprise Community is 9 eligible to apply for and receive resources for this State program; and 10 11 WHEREAS, it is the goal of the City of Saint Paul to promote business expansion, and the creation and 12 retention of full-time jobs that pay family-supporting wages for its residents; and 13 14 WHEREAS, the City of Saint Paul has applied for and been awarded $275,000 in funds from the State's 15 Enterprise Zone Incentive Grant Program; and 16 17 WHEREAS, the Department of Planning and Economic Development is already administering and 18 implementing the Federal Enterprise Community Zone funds; and 19 20 WHEREAS, the Business Resource Center in the Department of Planning and Economic Development 21 maintains a outreach program to both businesses and community economic development agencies, and 22 has the capacity to effectively administer the State's Enterprise Zone Incentive Grant Program; and 23 24 NOW, THEREFORE, BE IT RESOLVED by the Saint Paul City Council that approval is given for the 25 Department of Planning and Economic Development's Business Resource Center to accept and administer 26 $275,000 in funds from the State's Enterprise Zone Incentive Grant Program in accordance with the 27 attached guidelines. 9� -/S�3a � � Yeas Navs Absent Requeste by Department of: a e � ostrom �` uerin � annin & Econ ic Develo ment arris e ar e tman une � BY� r1 O G� Adopted by Council: Date N e-v �p \�q(a Form Ap oved by C' torney Adoption Certified by Council Secretary By: �. By: Approved by Mayor for Submission to Approved by Mayor: Date /� Z �� Council By: � "l,� By: C� q� /�� lOFFICFJCOUNCIL DATE INITIATED �6 � O 9 PED 11/13/96 GREEN SHEET CONTACT PERSON 8 PHONE INITIAL/DATE INITIAUDATE DEPARTMENT DIRECTOR CITY COUNCIL Sean Kershaw ��N CITYATTORNEY CITYCIERK NUMBER FOR MUST BE ON COUNCIL ACiENDA BY(DATE) ROUTINQ BUDGET DIRECTOR �FIN.8 MOT.SERVICES DIR. ORDER MAYOR(OR ASSI8TANn `� � 11/20 (Goal Q TOTAL#OF SIGNATURE PA(iES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUE3TED: Approval of attached program guidelines and resolution. RECOMMENDATIONS:Approve(A)a Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _PLANNING COMMISSIQN _ CIVIL SERVICE COMMIS310N 1• Has this person/firm ever worked under a contract for this department? _CIB COMMITTEE _ YES NO 2. Has this person/firm ever been a city employee? �� — YES NO _DI3TRICT COUR7 _ 3. Does this person/firm possess a skill not normall y possessed by any current city employeel SUPPORT3 WHICH COUNCIL OBJECTIVE? YES NO Job CreStion Snd business grOWth Explain all yes answen on ssperate shset and enach to yrosn sheet and development INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Whero,Why): Lack of job opportunities for Enterprize Ziine residents, and incentives for businesses located within the Zone to hire residents of the Zone. ADVANTA(iES IF APPROVED: New �obs created in Enterprize Zone, which benefit both residents and �.. businesses located within the Zone. DI3ADVANTACiES IF APPROVED: None DISADVANTAOES IF NOT APPROVED: See Advantages TOTAL AMOUNT OF TRANSACTION S 2�5�nnn-nn COST/REVENUE BUDGETED(CIRCLE ONE) YE8 NO FUNDIW(i SOURCE ACTIVITY NUMBER FINANCIAL INFORNfATION:(EXPLAIN) ROUTING ORDER: elow are correct routings for the five most frequent types of documents: V CONTRACTS(assumes authorized budget exists) �COUNCIL RESOLUTION(Amend Budgete/Accept.Cirants) 1. Outside Agency 1. Department Director 2. Department Director 2. Budget Director 3. City Attorney 3. Ciry Attomey - 4. Mayor(for contracts over$25,000) 4. MayodAssistant 5. Human Rights(for contracts over$50,000) 5. City Councl ' 6. Finance and Management Services Director 6. Chief Accountant,Finance and Management Servioes 7. Finance Accounting ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTtON(all othera,and Ordinancea) 1. Activiry Manager t. Department Director 2. Depertment Accountant 2. Cily Attotney 3. Department Director 3. Mayor Assistant 4. Budget Director 4. City Council 5. City Clerk 6. Chiet Accountant, Finance and Management Services ADMINISTRATIVE ORDERS(ali others) 1. Department Director 2. City Attorney 3. Finance and Management Services Director 4. City Clerk TOTAL NUMBER OF SIGNATURE PAGES Indicate the#�of pages on which signatures are required and paperciip or fls� �ach of thoas psges. ACTION RE�UESTED Describe whet the project/request seeks to accomplish in either chronologi- cal order or order of importance,whichever is most appropriate for the issue. Do not write complete sentences. Begin each item fn your list with a verb. RECOMMENDATIONS Complete i(the issue in question has been presented be(ore any body,public or private. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate which Council objective(s)your projecUrequest supports by listing the key word(s)(HOUSINC3, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDGET, SEWER SEPARATION). (SEE COMPLETE LiST IN INSTRUCTIONAL MANUAL.) PERSONAL SERVICE CONTRACTS: This intormation wiil be used to determine the citys liability tor workers compensation claims,texes and proper cfvil aervice hf�ing rules. INITIATING PROBLEM, ISSUE,OPPORTUNITY Explain the situation or conditio�s that created a need for your project or request. A�VANTAGES IF APPROVED Indicate whether this is simply an annual budget procedure required by law/ charter or whether there are specific ways in which the City of Saint Paul and its citizens will benetit irom this projecUaction. DISADVANTAGES IF APPROVED What negative effects or major changes to existing or past processes might this proiect/request produce if it is passed(e.g.,traHic delays, noise, tax increases or assessments)?To Whom?When?For how long? DISADVANTAGES IF NOT APPROVED What will be the negative consequences i(the promised action is not approvedl Inability to deliver service?Continued high tratiic, noise, accident rate?Loss of revenue? FINANCIAL IMPACT Although you must tailor the information you provide here to the issue you are addressing,in general you must answer two questions:How much is it going to cost?Who is going to pay? �l /�.3 c> Enterprise Zone Incentive Grant Program Guidelines City of Saint Paul PED/Business Resource Center Program Background In 1994 the State Legislature created the Enterprise Zone Incentive Grant Program (Program) to help leverage funds attached to the Federal Enterprise Zone Initiatives. The City of Saint Paul has been designated an Enterprise Zone City, and as such is eligible to receive assistance under the Program. This state Program is administered by the Department of Economic Security's Workforce Preparation Branch. Saint Paul applied for and received $275,000 in state funding from the Incentive Grant Program. The purpose of the Program is twofold: to provide incentives for companies to create jobs and hire and retain residents of the Enterprize Zone; and to enable residents of the Zone who, by definition, live in areas of high poverty concentrations, to find and maintain living wage jobs in accessible geographical areas. Program eligibility for both businesses and workers is based on concentrations of poverty within certain geographical areas of the City. Census tracts that contain concentrations of poverty in excess of 20% are eligible. (See attachment l). This geographical eligibility criteria is defined in State legislation that expands the boundaries of the original Federal Enterprise Zone. Program Description, Saint Paul The purpose of the City of Saint Paul's Job Creation Incentive Grant Program corresponds with the State of Minnesota's: to provide incentives for businesses to create new full-time jobs that pay a "livable wage", and to ensure that Enterprize Zone residents are hired and retained in these positions. The $275,000 available from the state as project incentives will help create between 55 and 81 new jobs for residents of the State Enterprise Zone. EligibilitX: ♦ Employers and employees must be located in the Enterprize Zone area (see attached map). ♦ Jobs must pay at least 170% of the Federal minimum wage, or $ 8.10 per hour. ♦ The employee must be retained in the job for 12 months before the employer is eligible for the incentive. 9'� -i5�� ♦ The jobs that are created must be new to Minnesota. ♦ Employers must be a for-profit business. Construction companies, financial institution, gambling enterprises, public utilities, and sports, fitness, racetrack, and health facilities are not eligible. ♦ The jobs must also be accompanied by Worker's Compensation and basic health care insurance. Incentive Level: The level of incentive available per employee is based on wages levels and whether or not the company has met the minimum eligibility requirements mentioned above. The amount reimbursed to the employer cannot exceed 20% of the annual wage paid, up to a maximum grant of$5,000. For example, a job paying $25,000 per year, or $12.02/hour could receive a maximum amount of $5,000. A company paying an employee the minimum wage of $8.10/hour could receive up to $3,370. Implementation: PED's Business Resource Center (BRC) will assume lead responsibility for program implementation. Targeted Business Outreach: The Business Resource Center will target outreach to companies that are currently located in the Enterprise Community Zone. The Port Authority will also help to identify industrial/manufacturing employers. Business Resource Center sta.ff will provide companies with information on program guidelines, and sources of job training and retention services. Coordination with Existing Employment Pro r�ams: PED will work closely with existing community and job training agencies, including PED's Workforce Development Center, to identify potential employees, and opportunities for skill development that will help both employees and employers take advantage of the program. Coordination with Existing Financial Pro r�s: If a business should be considered for assistance from both the Job Incentive Program and an existing PED loan/grant program, the anticipated subsidy from the Job Incentive Program must appear on the Public Purpose Summary for the project. Apnroval Process and Monitorin,g: Companies must provide a written request indicating their intent to participate in the program, the number of employees they plan to hire, and a brief plan to recruit, hire, train, and retain the employees. Companies must also provide a statement certifying that the jobs to be filed are new to Minnesota. The Business Resource Center will maintain this information, noting the date of the request. Eligibility will be on a first-come-first-served basis. At the end of the 12 months, the company will provide written documentation that it has met the program objectives. Business Resource Center staff will confirm the information and approve the final disbursement of funds. If an employer should fail to meet the goals it �� -��.�� established at the time of application, BRC staff will re-assign the allocation to the next eligible business(es). Pa•yback: If the business ceases operation in Saint Paul within two years of receiving the grant, 100% of the grant will be collected. If it leaves Saint Paul between two and four years, 75% of the grant will be collected/paid back. If it leaves between four and seven years, 50% of the grant will be collected. After seven years, no payback will be required. Contact: For additional information, please contact Harriet Horwath, Business Resource Center, at 266-6591. K:\SHARED\SCICU IP3.RPT - - ------ , - � � � � .�}: q tn '�' C7 .-�-i � � � �t' ,_,_, � � � �n c��f \ �, �g � � � � C � � .N L � � Q � ! b � � � � � ��ri � \ y,� � � � �' � � � � � � w `—I �\ c� ' � � � H � M� � \\ � � a +� � c� d' °°�� -i -� �c`�� o 0 0 � � � c� � v o0o y+ V o � � � � � �� 4 � � � � � � � a �� ' � a� o �. c�*�\ �' � Z � � � � � � ° � � � � �\ � � � � � � a� co � �\ � `� � ul t� �' � F. � � `� ° � `� � � � "' � O � � �� c� � � � � M � � �i � � � � Q..� �;' � o� � C�2 .� � � � � \� � � � � \ � �; tC� ,.,� � CJ C� d' , � \� \�\\ C'7 '� *--i � � \�\\�\ � � � �' \\� �� ; � � '"'� 4'� ti \�� --I