05-492Council File # u�� •�Z
ltesolution # 3026479
Green Sheet # �/
RESOLUTION
Presented By
Referred To
CITY OF SA�T PAUL, MINNESOTA �
Committee: Date
1 WHEREAS, in 2003, the State of Minnesota Legislature enacted Minnesota Stahxtes
2 Sections 469.330 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
5 WHEREAS, pursuant to Minnesota Statutes Sections 469331 (a) and 469333, the City
6 Council of the City of Saint Paul, Minnesota (hereinafter referred to as the "City"), on October
7 15, 2003, by and through C.F. 03-934, adopted a Development Plan (hereinafter referred to as the
8 "Plan") and applied for designarion of a biotechnology and health sciences industry zone in the
9 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 available to a qualified
12 business located within a biotechnology and health sciences industry zone (hereinafter referred to
13 as the "Tax Exemption/Credit Program"); and
14 WHEREAS, on January 1, 2004, the State through its Commissioner of Department 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, InnovaLight, Ina (hereinafter referred to as "the Company"), is a
19 biotechnology and health sciences company that is engaged in developing next generation
20 lighting based on its novel silicon nanocrystals; and
21 WHEREAS, the Company is a lessee of a portion of the properiy located at 1246
22 liniversity Avenue ��'est in the City of Saint Paul (hereinafter referred to as the "Project
23 Property"), which 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 469.330, Subd. 11; and
26 WHEREAS, the Company is applying to the Commissioner for a tas credit certificate
27 pursuant to Minnesota Statutes Section 469335 seeking to claim tax credits and exemptions
28 from eligible taYes as outlined in Minnesota Statutes Sections 469336 though 469.339 inclusive;
29 and
30 WHEREAS, the City supports the Company's above-described request for a tax credit
31 certificate provided the Company satisfies the conditions and obligations contained in a ����
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 A�eement and Business Subsidy Agreement both as a condirion to the Company's participarion
37 in the Tas Exemption/Credit Program and for the purpose of setting forth the respective
38 responsibilities of the City and Company in carrying out to a successful conclusion the Tax
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, objections and recommendations relative thereto, and having fully
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 substantially 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 Depar[ment 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.
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
Departmentloffice/council: ' Datelnitiated: "�-���
PE - Planning&EconomicDevelopment I 1CrMAY-05 , Green Sheet NO: 3026479
CoMact Person & Phone:
Martin Schieckei
266-6580
Must Be on Councii Agen
01-JUN-0S . /I . _
� UBpartrtleflt SEM To Pers00 Iflrt(al/Da[e
0 � lannin & Economic Develo i Team Leader - A1 Ca i�
Assign 1 lannin¢ & Economic Develoo i Deoartment Director I —/.-, _
Numbe� 2 "tvAKOmev � CiriAttornev ! S /�
For
Routing 3 �Financial Services I Of£ce Financial Servi !
Order 4 avor's O�ce I Mavor/ASSistant
5 �Council �
Total # of Signature Pages _(Clip AII Locations for Signature)
Action Requested:
Approve for submission to City Council a resoluuon approving the execution of a Development Ageement and Business Subsidy
Agreement with InnovaLight, Inc. The resolution needs to be on the June 1, 2005 City Council agenda for a scheduled public heating
on the Business Subsidy Agreement.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
Personal Service Contracts Must Answer the Following Questions:
1. Has this personffirm 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/firtn possess a skill not normally possessed by any
� current city employee?
Yes No
Explain all yes answers on separate sheet 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
industry zone in St. Paul. The Plan allows for tas credits and exemptions to be offexed to qualified businesses under Minnesota Statutes
Secrion 469336. InnovaLight, Inc. is a qualified business seeking tax credits and exemprions under this program. City Council action,
including a public hearing, is required to approve The necessary Development Agreements.
AdvanWges If Approved: �
Will be able to access a State funding source to support the creation of a new biotechnology business in St. Paul.
DisadvantapeslfApproved:
None.
DisadvanWpes If Not Approved:
Will reduce the opportunities for the successful start-up of a new biotechnology business in St. Paul.
Total Amount of �
Transaction:
FundinSl Source:
Cost/Revenue Budgeted:
Activity Number:
Resaarch Gante�
Financial Information: State taY credits and exemprions.
(F�cPlain) MAy 2 � 2005