05-491Council File # v� ` ``
Resolution #
Green Sheet # 3026478
RESOLUTION
CITY OF SA�T PAUL, MINNESOTA �
Presented By
Referred To
Committee: Date
1 WHEREAS, in 2003, the State of Minnesota Legislature enacted Minnesota Statutes
2 Sections 469330 et. seq. providing for the creation of biotechnology and health
3 sciences industry zones throughout the State of Minnesota (hereinafter referred to as the
4 "State"); and
WHEREAS, pursuant to Minnesota Statutes Sections 469331 (a) and 469333, the City
Council of the City of Saint Paul, Minnesota (hereinafter referred to as the "City"), on October
15, 2003, by and through C.F. 03-934, adopted a Development Plan (hereinafter referred to as the
"Plan") and applied for designation of a biotecluiology and health sciences indushy zone in the
City; and
10 WHEREAS, the Plan contains among other things, a description of the tax credits and
11 exemptions under Minnesota Statutes Section 469336 that could be made auailable to a qualified
12 business located within a biotechnology and health sciences industry zone (hereinafter referred to
13 as the "Tas Exemption/Credit Program"); and
14 WHEREAS, on January 1, 2004, the State through its Commissioner ofDepartment of
15 Employment and Economic Development (hereinafter referred to as the "Commissioner"),
16 designated a biotechnology and health sciences industry zone in the City (hereinafter referred to
17 as the "Zone"); and
18 WHEREAS, Gel-Del Technologies, Inc. (hereinafter referred to as "the Company"), is a
19 biotechnology and health sciences company that is engaged in developing biomedical products
20 simulating human tissue; and
21 WHEREAS, the Company is a lessee of a portion of the property located at 1000
22 Westgate Drive in the City of Saint Paul (hereinafter referred to as the "Project Property"), which
23 Project Property is located within the Zone; and
24 WHEREAS, the Company is a"qualified business" as that term is defined under
25 Minnesota Statutes Section 469330, Subd. 11; and
26 WHEREAS, the Company is applying to the Commissioner for a tax credit certificate
27 pursuant to Minnesota Statutes Section 469.335 seeking to claim taac credits and exemptions
28 from eligible ta}ces as outlined in Minnesota Statutes Sections 469336 though 469339 anclusive;
29 and
30 WHEREAS, the City supports the Company's above-described request for a tax credit
31 certificate provided the Company sarisfies the conditions and obligations contained in a v� `
32 Development Agreement and Business Subsidy Agreement to be made by and between the City
33 and Company, which approval of said agreements is sought by this Resolution; and
34
35 WHEREAS, the State requires the City and the Company to enter into a Development
36 Agreement and Business Subsidy Agreement both as a condition to the Company's participation
37 in the Tas Exemption/Credit Program and for the purpose of setting forth the respecrive
38 responsibilities of the City and Company in carrying out to a successful conclusion the TaY
39 Exemption/Credit Program in accordance with all federal, state and local laws; and
40 WHEREAS, a public hearing having been had upon the above-referenced Business
41 Subsidy Agreement in accordance with State law and upon due notice, and the City Council
42 having heazd all persons, objecrions and recommendations relative thereto, and having fixlly
43 considered the same;
44 NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul,
45 Minnesota hereby:
46 1. Approves the execution of a Development Agreement and a Business Subsidy
47 Agreement with the Company in substanrially the forms respectively submitted, and that the
48 required City officials are hereby authorized and directed to execute the Agreement on behalf of
49 the City. The Director of the Deparhnent of Planning and Economic Development is hereby
50 further designated and authorized to negotiate and agree to any amendments, deletions or
51 revisions to the above-referenced agreements prior to their respective execution which do not
52 substantially change the rights or obligations of the City, subj ect to the following conditions: a)
53 such amendments, deletions or revisions do not materially adversely affect the interests of the
54 City; b) such amendments, deletions or revisions do not contravene or violate any policy of the
55 City; and c) such amendments are acceptable in form and substance to the Saint Paul City
56 Attomey.
Plannin & Economic D velo ment
�° ��� ���-
�� � Green Sheet.Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
i DepartmenUoffice%ouncil: Date Initiated: I �` ��,
i PE — Planning&EconomicDevelo�ment ��-�Y-0S , Green Sheet NO: 3026478
CoMact Person 8 Phone:
Martin Schieckel
266-6580
Must Be on
01-JUN-O5
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Total # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Approve for submission to Ciry Council a resolurion approving the execurion of a Development Agreement and Business Subsidy
Agreement with Gel-Del Technologies, Inc. The resolution needs to be on the June 1, 2005 City Council agenda for a scheduled public
hearing on the Business Subsidy Agreement.
Recommendations: Approve (A) or Rejeci (R):
Planning Commission
CIB Committee
Civil Service Commission
Personaf Service Contrects
1. Has this person/frm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/frm possess a skill not normally possessed by any
current city employee? -
Yes No
Explain all yes answers on separete 5heet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City Council, through C.F. 03-934, adopted a Development Plan and applied for designarion of a biotechnology and health sciences
indushy zone in St. Paul. The Plan allows for tas credits and exemprions to be offered to qualified businesses under Minnesota Statutes
Section 469336. Gel-Del Technologies, Inc. is a qualified business seeldng tax credits and exemptions under this progtam. City Cauncil
action, including a public hearing, is required to approve the necessary Agreements.
Advanqpes If Approved:
Will be able to access a State funding sousce to support the crearion of a new biotechnology business m St. Paul.
Disadvantapes If Approved:
None.
Disadvantaqes If Not Approved: �
Will reduce the opportuvities for the successful start-up of a new biotechnology business in St. Paul.
Total Amount of O
Trensaction:
Fundinq Source: _
CosURevenue Budgeted:
Activity Number:
�S r°��S9�iG�1 �i°'n§°�`
Financial Information: State taY credits and exemptions. MAV 2 3 2�0�
(Explain) 0