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06-637Council File # �-� Green Sheet # 3p�� 2 0 6 7 8 9 10 11 12 13 14 15 16 17 l8 19 20 21 22 23 24 25 26 27 28 29 3� 31 32 33 34 35 36 37 38 39 40 41 42 OF Presented MINNESOTA RESOLUTION WANING THE RESIDENCY REQUIREMENT OF LNING WAGE POLICY FOR T'F1E MEMORIAL BLOOD CENTERS PROJECT � r WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority") has the power to engage in development or redevelopment activities under Minnesota law and the Authority is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c} bringing substandazd buildings and improvements into compiiance with public standazds, (d) disposition of land for private redevelopment, and (e) improving the taac base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in tazgeted neighborhoods; WHEREAS, the Authoriry by Resolution No. 97-1/2-1 and the City of Saint Paul City Council by Resolution No. 96-1512 approved and adopted the policy recommendations of the joint Saint Paul-Minneapolis living wage policy task force ("Living Wage Resolution"); WHEREAS, section 4 of the Living Wage Resolution requires that 60% of jobs newly created must be held by City residents; WHEREAS, the Authority has approved a loan to Memarial Blood Centers on September 28, 2005; WHEREAS, Memorial Blood Centers has requested a waiver of section 4 of the Living Wage Resolution because Memorial Blood Centers provides services for the collection, processing, testing and distribution of blood, its derivatives and related products and supports certain FDA clinical studies for medical equipment, manufacturers and testing and many of its warkers are highly-skilled in the area of technical laboratory management and blood treatment and testing and employs people with technical degrees, many with advanced degrees and medical technician training, and Memorial B1ood Centers must recruit and maintain employees from throughout the entire metro and throughout the country; WHEREAS, in his role as Interim Executive Director of the Authority, and the Interim Director of the Aepartment of Planning and Economic Development (PED) Tony 5chertler brought the issue of waiving this residency provision to the Memorial Blood Centers transaction and asked for approval of PED' s"best efforts" compliance requirements for the enforcement of this requirement for the Memorial Blood Centers transaction; and WHEREAS, the Authority's Board of Commissioners agreed to grant a waiver of this prov3sion for the Memorial Blood Centers transaction; and WHEREAS, given this direction by the Board of Commissioners the PED Ditectar agreed to approve this waiver and bring this resolution to the City Council. a�-�3 � 43 44 NOW THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE 45 CITY OF SAINT PAUL AS FOLLOWS: 46 47 1. The City Council hereby waives the residency requirement of the Living Wage 48 Resolution for the Memorial Blood Centers Inc. transaction and directs PED staff to apply a"best efforts" 49 compliance requirement for the enforcement of this requirement. 50 51 2. The staff of the Authority is directed to proceed with all acrion necessary to 52 implement this resolution. 53 Benanav Bostrom Harris Thune Adopted by Council: Date Adoption Certified by Council Secret�y BY� ' /i_5�lr� Approved M . Da -�G By: ✓ Requested by Department of: Plannin� and Economic Development 9 � Cecile Bedor, D'uector Form Approv d 'ry , , er, By: � Form Ap ove y or fo mis ' to ouncil By: � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � �_._� .. _ . .. �� G3� PE ��enning&EconomicDevelopmeM Corrtad Person 8 Phone: Craig OBrien 266-6695 roust 6e on Council Agenda 12-JUL-06 Tohl # of Signature 29J11N-06 �1 Assign Number For Routing Order Green Sheet NO: 3031196 1 �planoiva & Ecanomic Develoo �Deoartment D e tor 2 �y � 3 r's ffice Ma or 'sta t , 4 n '1 'S *k Ci Clerk (Ciip AI{ Locatio� for SigrraWre) Execufion of Council Resolurion waiving the residency requirement of the Living Wage Resolufion as it pertains to the Memorial Blood Centers project idations: Approve (A) or R Planning Commission CIB Committee Civii Service Commission Personal Service Following 1. Has this persoNfirm 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 personffirtn possess a skill not �ortnally possessed by any current city empioyee? Yes No Explain all yes answers on separete sheet and attach to green sheet Initiating Problem, Issues, OpportuniTy (Who, What, When, Where, Why): Memorial Blood Centers was approved for a Strategic Investment Fund loan by the F3RA and the Living Wage resolufion applies to this project. Memorial Blood Centers believes it will have difficulty meeting the residency requirement of the Living Wage resolurion for new hires and has requested a waiver and has instead agreed to "best efforts" to comply with tbe residency requirement. Advanta5fes If Approved: Will allow the project and Strategic Investment Fund loan to go forwazd. Disadvanqges If Approved: None Pisadvantaqes If Not Approved; Memorial Blood Centers will be in default on its loan if they are unable to meet the residency requirements. n Hmounc ot 7ra�actfon: Fundinpsource: HRA11726510 Financial Information: StrBtegic Investment (Exp�ain) Fund Activity Number: / f 7—� P, S( (y � ��C;� ��.��>vt; ��"a$�[ c�.--- JUL � � ��6 CosURevenue Budgeted: N � C'�k.0 J Craig O'Brien - Re: Fwd: Mem'orial Blood Genters Living Wage Residency Requirement Waiver Request Page 1 fJG �3 � From: Kris Fredson To: Fiiice, Amy Date: 6/2912006 1:54:25 PM Subject: Re: Fwd: Memorial Blood Centers Living Wage Residency Requirement Waiver Request Amy, Per Council approval, the Mayor is OK with this. Fredson Kris Fredson Deputy Chief of Staff Mayor Christopher B. Co(eman 390 City Hall Saint Paul, Minnesota 55102 651-266-8534 kris.fredson@ci.stpaul. mn. us »> Amy Filice 6/28/2006 1:59 PM »> Kris - As a followup to our telephone conversation yesterday evening and in anticipation of the meeting you have scheduled with the Mayor this afternoon to discuss new changes to the Living Wage Policy, I have attached an email from the project manager for the Memorial Slood Centers project. The draft NRA Board report, draft City Councif resolution requesfing a waiver of the residency requirements of the Living Wage Policy, and a fetter from the Blood Centers requesting this waiver firom the PED director are attached for reference. I have condensed the important points below: - The HRA has granted a$720,000 forgivable loan from the Strategic Investment Fund to this company to assist it in it's consolidation and expansion in Saint Paul and their agreement to maintain no fewer than 240 FTE's at this location. - If the waiver for the residency requirement is not granted, a�d ff Memorial Blood Centers does not meet the goaf of 60% Saint Paul residents, Memoriai Blood Center wouid be considered in defauft of their loan agreement. - Within the last several months the Gity Council granted a residency waiver to Minnetronix for simi4ar reasons which included the need to recruit regionally and sometimes nationally to attract employees with the specialized technical skiils required for their businesses. - We currently intend to place the HRA Board report recommending the waiver on the HRA agenda for the July 12th meeting, and also place the Request for Waiver resolutian on the duly 12th City Council agenda. Questions for you and the Mayor: 1. Does this conflict with the proposed changes to the Living Wage Ordinance? 2. Can you support this waiver under the existing Living Wage Ordinance? If you have answers after your meeting, please let me know as soon as possible, as the agendas are in process. If the Mayor would like additional information or a briefing, please let me know and we will schedule it promptly. Thanks - I'm looking foruvard to seeing a draft of the proposed ordinance - __ __. i Craig OBrien - Re Fwd: Memoriai Blood Centers Living 1Nage Residency Requirement Waiver Request Page 2 D(c- �'�� Amy CC: Bedor, Cecile; Homans, Nancy; Mulholfand, Ann; Schertler, Tony