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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