05-609Council File # ��
Resolution #
Green sheet # 3026965
Presented By
Referred To
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA �
Committee: Date
WHEREAS, in 2003, the State of Minnesota Legislature enacted Minnesota Statutes
Sections 469330 et. seq. providing for the creation of biotechnology and health
sciences industry zones throughout the State of Minnesota (hereinafter referred to as the
"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, 2��3, by and through C.F. 03-934, adopted a Development Plan (hereinafter referred to as the
"Plan") and applied for designation of a biotechnology and health sciences industry zone in the
City; and
10 WHEREAS, the Flan 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 indushy 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 indusriy zone in the City (hereinafter refened to
17 as the "Zone"); and
18 WHEREAS, RespirTech, Inc. (hereinafter referred to as "the Company"), is a
19 biotechnology and health sciences service company; and
20 WHEREAS, the Company is located at 1435 Energy Park Drive in the City of Saint Paul
21 (hereinafter referred to as the "Project Property"), which Project Property is located within the
22 Zone; and
23 WHEREAS, the Company is a"qualified business" as that term is defined under
24 Minnesota Statutes Section 469330, Subd. ll; and
25 WHEREAS, the Company is applying to the Commissioner for a tax credit certificate
26 pursuant to Minnesota Statutes Section 469335 seeking to claim t� credits and exemptions
27 from eligible taxes as outlined in Minnesota Statutes Sections 469.336 though 469339 inclusive;
28 and
29 WHEREAS, the City supports the Company's above-described request for a tax credit
30 certificate provided the Company satisfies the conditions and obligations contained in a O � _ ��
31 Development Agreement and Business Subsidy Agreement to be made by and between the City
32 and Company, which approval of said agreements is sought by this Resolution; and
33
34 WHEREAS, the State requires the City and the Company to enter into a Development
35 Agreement and Business Subsidy Agreement both as a condifion to the Company's participation
36 in the Tas Exemprion/Credit Program and for the purpose of setting forth the respective
37 responsibilities of the City and Company in carrying out to a successful conclusion the Tas
38 Exemption/Credit Program in accordance with all federal, state and local laws; and
39 WHEREA5, a public hearing having been had upon the above-referenced Business
40 Subsidy Agreement in accordance with State law and upon due notice, and the City Council
41 having heard a11 persons, objections and recommendations relative thereto, and having fully
42 considered the same;
43 NOW, THEREFOItE, BE IT RESOLVED that the Council of the City of Saint Paul,
44 Minnesota hereby:
45 1. Approves the execution of a Development Agreement and a Business Subsidy
46 Agreement with the Company in substantially the forms respectively submitted, and that the
47 required City officials are hereby authorized and directed to execute the Agreement on behalf of
48 the City. The Director of the Department of Planning and Economic Development is hereby
49 further designated and authorized to negotiate and agree to any amendments, deletions or
50 revisions to the above-referenced agreements prior to their respective execution which do not
51 substantially change the rights or obligations of the City, subject to the following conditions: a)
52 such amendments, deletions or revisions do not materially adversely affect the interests of the
53 City; b) such amendments, deletions or revisions do not contravene or violate any policy of the
54 City; and c) such amendments aze acceptable in form and substance to the Saint Paul City
55 Attorney.
Requested by Department of:
Bostrom
Harris
Helgen
Lantry
Montgomery
Thune
Adopted by Council: Date
Adoption Ces
By:
Approved by
By:
Plannin & Economic Develo me t
/r�
Approved by Financial Seroices
$Y �
Form Approve
3y'
by
3y:
�� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
�
PE - Planning & Economic Development
� Contact Person & Phone:
! Martin Schieckel
266-6580
Be on Council !{qer
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17-JUN-0.5
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Assign
Number
For
Routing
Order
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Green Sheet NO: 3026965
Deoartrnent
I plaunine & Economic Develoo ' lleoartment Ihrector I
2 'riAttomev � CiNAttornev
3 i inancial Services i�ce Fioaocial Servi i
4 avor's O�ce MavodAssistant
5 ,�Cnuncil � CiN Couocil
Total # of Signature Pages _(Clip All Lowtions for Signature)
Action Requested:
Approve for submission to City CouncIl a resolution approving the execution of a Development Agreement and Susiness Subsidy
Agreement with RespirTech, Inc. The resolurion needs to be on the July 6, 2005 Ciry Council agenda for a scheduled public hearing
on the Business Subsidy Agreement.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
G�
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3."�oes this personlfirtn Rossess a skill not normatly possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sfieet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City Council, through C.F. 03-934, adopted a Development Plan and applied for designation of a biotechnology and health sciences
indushy zone in St. Paul. The Plan allows foi tax credits and exemptions to be offexed to qualified businesses undex Minnesota
Statutes Secrion 469.336. RespirTech, Inc. is a qualified business seeking tax credits and exemprions under this prograxn. City Council
action, including a public heazing, is required to approve the necessary Agreements.
AdvanWpes If Approved:
Will be able to access a State funding source to support the creaUOn of a new biotechnology business in St. Paul.
DisadvanWpes If Approved:
None.
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JUN 2 7 2005
Disadvanqges If Not Approved:
Will reduce the opportunities for the successful start-up of a new biotechnology business in St. Paul.
Total Amount of Q
Transaction:
Fundinp Source:
Answer the Followinp Questions:
CosURevenue Sudgeted:
Activity Number:
�UItl � c,> Lo��
Financiallnformation: Statetax credits and exemptions. p^�� ��������
(Explain) ��9 g