96-304�M� ti, CJ � 'p T
��{� 3���f��
RESOLUTION
�� � � Council File # —3 o y
OF SAINT PAUL, MINNESOTA
Presented
Referred To
Green Sheet # 3� t
eC �
Committee Date
RESOLUTIONESTABLISHING USE OFA PUBLIC PURPOSE ANALYSIS FOR
CITY FINANCIAL ASSISTANCE PACKAGES TO THE PRIVATE SECTOR
1 WHEREAS, a sound jobs creation and retention policy is fixndamental to successful City of Saint Paul and
2 Housing and Redevelopment Authority (HRA) investments on behalf of the citizens of Saint Paul; and
3 WHEREAS, the City Council has recently reviewed the City's job creation and retention policies and
4 practices reported on in the Council Research report job Creation andRetention in SaintPaul: PolicyAnalysis
5 and Performance Audit and found that the City's main practices associated with job creation and retention aze
1) The prepazation of Job Impact Statements which provide information to the Council and HRA Board
on the estimated number of jobs to be created, retained or lost as a result of the project for which the City
is planning to provide financial assistance; and
9 2) The conclusion of First Source Agreements with developers or firms to which the City provides more
10 than $1,000,000 in industrial revenue bond or other economic development assistance.
ll WHEREAS, First Source Agreements are non-binding agreements which City staff are required to conclude
12 with companies receiving assistance in excess of $1 million, and which staff may conclude with companies
13 receiving less than $1 million; and
14 WHEREAS, First Source Agreements provide that the company receiving assistance will disclose to the
15 Workforce Development Division its projected position openings, so appropriate candidates from the
16 division's job training programs may be considered by the company; and
17
18
19
20
21
WHEREAS, the job referral services provided to private companies with signed First Source Agreements are
also available to private companies without signed First Source Agreements; and
WHEREAS, job creation or retention is one of several public purposes to be served by the City's economic
development activity and it is difficult to determine the level of public funds spent for job creation or
retention purposes versus other public purpose activities; and
22 WHEREAS, the development of an analysis which takes into account the diverse nature of the public
23 purposes served by projects receiving City or HRA assistance would be extremely useful to the Council and
24 HRA Board as they examiue individual projects and overall City and HRA funding priorities; now therefore
25 be it
26 RESOLVED, that the City Council and HRA Board require that the public cost and public purpose analysis
27 accompany all assistance package proposals which come before the City CouncIl and HRA Board, as well as
28 for those proposals which do not require Council or I IR11 Board action; and
(��� i
n, :_
29 RESOLVED, that this analysis of the public purposes to be served include the following issues:
30 cost for the project, job impacts, housing development benefiu, and community and economic
31 as is displayed in the attached "Public Purpose Summary" form; and �
9�-3oy
. .I: :
32 RESOLVED, that Planning and Economic Development (PED) is designated as the dep ment responsible
33 for completion of this public purpose analysis; and
34 RESOLVED, that based on the advent of this public purpose analysis, which incl _ es an analysis of job
35 impacts, the City Council and HRA Boazd rescind the requirement that a sepaz "Job Impact Statement" be
36 prepared for City and HRA financial assistance packages to the private sector, d
37
38
39
40
RESOLVED, that the City Council and HRA Board directs staff to
using City reports and forms to meet state reporting requirements �
RESOLVED, that the requirement that companies receiving
First Source Agreement is hereby rescinded; and
state staff the possibiliry of
iate for job impact data; and
be asked to sign a non-binding
41 RESOLVED, that the City Council and HRA Board are fully " pportive of the City service of referring
42 trained potential employees to businesses requesting referrals f potential employees; and
43 RESOLVED, that follow-up be conducted annually, as a art of standard loan servicing procedures, to
44 determine as simply as possible, if the public purposes� entified as the reasons for City financial involvement
45 were achieved, and if they were not—an explanation circumstances; and
46 RESOLVED, that implementation procedures fo this analysis and appropriate follow-up be articulated in the
47 PED account officer's operations manual and o er appropriate places; and be it finally
48 RESOLVED, that an annual report be pre ed by PED for the City Council and I IRA Board which 1)
49 presents the information gathered in the blic purpose analysis during the past year and 2) provides a
50 summary of the information gathered ' annual follow-ups of funded projects.
I Yeas
Blakey
Bostrom
Guerin
Harris
Megard
Rettman
Thune
Requested by Department of:
�
Form Approved by City Attomey
�
Approved by Mayor for Submission to Council
Adopted by C�funcIl Date:
Adoprion
By:
App ved
By:
by Council Secretary
by Mayor Date:
�
I � 3C— 30�
a n+►�o rW �Nr
�a-�.. r +. _..�i
RESOLVED, thaL this analysis of the public putposes to be served include the following issues: City or HRA
cost for the project, job impacts, housing development benefiu, and communiry and economic benefiu—such
as is displayed in the attached "Public Purpose Summar�' form; and
32 RESOLVED, that Planning and Economic Development (PED�'is designated as the department responsible
33 for completion of this public purpose analysis; and / � � ��� _
L� R,nQ / i"'S �.rl�HOf RlS�!}' �H � 5 �' �.
34 RESOLVED, that based on the advent of this public purpose analysis, which includes an analysis of job
35 impacts, the City Council and HRA Board rescind the requirement that a sepazate "Job Impact Statement" be
36 prepazed for City and HRA financial assistance packages to the private sector; and
37
38
39
40
41
42
RESOLVED, that the City Council and HRf1 Boazd directs staff to discuss with state staff the possibility of
using City reports and forms to meet state reporting requirements when appropriate for job impact data; and
RESOLVED, that the requirement that companies receiving financial assistance be asked to sign a non-binding
First Source Agreement is hereby rescinded; and
RESOLVED, that the City Council and HRA Board are fully supportive of the City service of referring
trained potential employees to businesses requesting referrals of potential employees; and
43 RESOLVED, that follow-up be conducted annually, as a paz-t of standard loan servicing procedures, to
44 determine as simply as possible, if the public purposes identified as the reasons for City financial involvement
45 were achieved, and if they were not—an explanation of circumstances; and
46 RESOLVED, that implementation procedures for this analysis and appropriate follow-up be articulated in the
47 PED account officer's operations manual and other appropriate places; and be it finally
48 RESOLVED, that an annual report be prepared by PED for the City Council and HRA Board which 1�
49 presents the information gathered in the public purpose analysis during the past year and 2) provides a
50 summary of the in£ormation gathered in annual follow-ups of funded projects.
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Adopted by Council Date:
Adoption Certified by Council Secretary
By:
Approved by Mayor Date:
By:
Requested by Deparhnent of:
�
Form Appraved by City Attomey
�
Approved by Mayor for Submission to Council
�
�c _ ao y
�'M� N A rv� G rv T"
�a �-.!
29 RESOLVED, that this analysis of the public purposes to be served include the following issues: City or HRA
30 cost for the project, job impacts, housing development benefits, and community and economic benefiu—such
31 as is displayed in the attached "Public Purpose Summary" form; and
32 RESOLVED, that Planning and Economic Development (PED) is designated as the department responsible
33 for completion of this public purpose analysis; and
34 RESOLVED, that based on the advent of this public purpose analysis, which includes an analysis of job
35 impacts, the City Council and HR A Board rescind the requirement that a sepazate "Job Impact Statement" be
36 prepared for City and HRA fmancial assistance packages to the private sector; and
37 RESOLVED, that the City Council and I IRA Boazd directs staff to discuss with state staff the possibility of
38 using City reports and forms to meet state reporting requirements when appropriate for job impact data; and
, at the requirement that companies receiving
4 ' ere y ' zted; and
41
42
�'ui,��
43 RESOLVED, that the City Council and I IRA Board are fully supportive of the City service of referring S/� �"�
44 trained potential employees to businesses requesting referrals of potential employees; and -�
45 RESOLVED, that follow-up be conducted annually, as a part of standard loan servicing procedures, to
46 determine as simply as possible, if the public purposes identified as the reasons for City financial involvement
47 were achieved, and if they were not—an eaplanation of circumstances; and
48 RESOLVED, that isnplementation procedures for this analysis and appropriate follow-up be articulated in the
49 PED account officer's operations manual and other appropriate places; and be it finally
50 RESOLVED, that an annual repon be prepared by PED for the City Gouncil and HRA Board which 1�
51 presents the information gathered in the public purpose analysis during the past year and 2) provides a
52 summary of the information gathered in annual follow-ups of funded projects.
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Adopted by Council Date:
Adoption Certified by Council Secretary
By:
Approved by Mayor Date:
Requested by Department of.
�
Form Approved by City Attomey
�
Approved by Mayor for Submission to Council
C�.Z�
A ��l�1O�� r ��� 1!� �� --30y
29 RESOLVED, that this analysis of the public purposes to be seroed include the following issues: City or HRA cost for
30 the project, job impacts, housing development benefiu, and community and economic benefiu—such as is displayed in
31 the attached "Public Purpose Summar}�' form; and
32 RESOLVED, that Plauning and Economic Development (PED) is designated as the depattment responsible for
33 completion of this public purpose analysis and this will not result 3n additional com�liance requiremenu for co�
34 and
35 RESOLVED, that based on the advent of this public purpose analysis, which includes an analysis of job impacts, the
36 City Council and HRA Board rescind the requirement that a sepazate "Job Impact Statement" be prepared for City and
37 HRA financial assistance packages to the pxivate settor; and
38
39
40
41
42
43
44
45
46
RESOLVED, that the City Council and HRA Board direct staff to discuss with state scaff the possibility of using Ciry
reports and forms to meet state reporting requiremenu when appropriate for job impact data; and
form; and
RESOLVED, that the Ciry Council and HRA Board aze fully supportive of the Ciry service of referring trained
potential employees to businesses requesting referrals of potential employees; and
47 RESOLVED, that follow-up be conducted annually, as a part of standazd loan servicing procedures, to determine as
48 simply as possible, if the public purposes identified as the reasons for HRA or Ci[y financial involvement were achieved,
49 and if they were not—an explanation of circumstances; and
50 RESOLVED, that implementation procedures for this analysis and appropriate follow-up be articulated in the PED
51 account officer's operations manual and other appropriate places; and be it finally
52 RESOLVED, that an annual report be prepared by PED for the City Council and I-IRA Board which 1) presents the
53 information gathered in the public purpose analysis during the past yeaz and 2) provides a summary of the information
54 gathered in annual follow-ups of funded projects.
Yeas Nays Absent
Blakey �
sostrom ✓
Guerin ✓�
Hazris �/'"
Megard ✓
Rettman ✓
Thune ✓
Requested by Depanment of:
B
Form Approved by City Attorney
B
Approved by Mayor for Submission to Councfl
By:
Approved by Mayor Date:
s
Adopted by Council Date: � (
Adoption Certified by Council Secretary
B
Apprc
BY:
PUBLIC PURPOSE SUMMARY
Project Name _
Project Address
City Contact _
Account #
Today's Date
PUBLIC COST ANALYSIS
q�, _30�.
P��� ��� so�� r��
Intrrestl��te S�ebsidizedRz�te� L3 Yes � Ida f� 1�IIA �Grant) -
Tyj�e._ �T Lqan Risk Kiisirrg; �1 f3cceptable (2°lo res} 0 5ubstandard �TQ°lu rzs) �] Loss (f(7(�°fo se§)
�€ Graut �1 �pecial.Ivletztzon (3°lo-resj II IlAUbt� (2S"la-xes) Cl �€�rgi$alrle {laII°� zes)
Subsidy'�
PUBLIC BENEFIT ANALYSIS
(Mark "1"for Primary Benefits and "2"for Secondary Ben�ts)
L Community Development Benefits
C3 Remo-v� ��i,ghtlPallutzoa C} Sxi�prave Sa£ety antl S�ccTZiti3� L3 Xticz�as�lMaintain �'a�c Sase
C7 l�eha6, V�cant Struccure ❑ I�ublic Iiugrovements CE �rreat Tax �r4ductir�n
C7 T�mova��c�nt �eructure CI �oods$t Scrc�ices Ava�abiIztp [.� Est'd�a3cesas B�i1t
0 T��r��a�� I'reserrr��ion CJ Main��in Ta�C l3ase Gt N6t �han�c in T�es (+ or -)�
II. Economic Development Benefits
C7 Support Vitality o£ 7ndustry C7 �rea�� ��w Lacal 33usiuesses ❑ Generate Pri�a�e 7mvestiusnt
C7 St�tbiti2s IuIarket Value 3� Re�ain Loeai �usiness�s C� Supp�n Comax,ercz�k A�ivic�
CI I�ravicfe Self Employment t�ptions L� Encau�rag� Entreprenenrs�sip C7 Increase i�omenfM3nority liu:
III.
Benefits
�crzase FTctme E)wn�rship Stoc� �7 Aidress �pec�1 T3ousing I�leeds � Maiutain F-Tousing
d# UnitsNe� ConstruCt�on _.,._ Q I�etain Hc�me Qwnt rs in Gity C3 lf tlnits Reatal _
L� # Units Ccrnv�ss�on � A�fordat�Je Housiu� �{I Usuts t7wt�er +
IV. Job Impacts
❑ �r� Jo� ��t��cx
�f�CtBS �R�A'7�1�
perma�e�tt�
fS verage 1TAag;e
#,�OSS�2ET.�T771V�� (fexlltime pernia��ent�
#Jfl$&�QS2 (fu7ltimep��a�tanent}
Year i I �ear 2 t�ear 3 d Year 4 i Year S
� Tota1 Loan Subsidy: Present value of the loan over its li£e, including e�cpected loss of principle and interest rate subsidy.
q � -3oy
�OLLOW-UP FROM LOAN SERVICING PROCESS
�ear � Ft#Ilt�w tIp T3ate
'uhii� Pnrpn�e <3b�ect�u�s Met� ❑ Yes _�I No � Iu Part - I3e�cieneies -
r 2 F�1IO�[!-1I�3 I)afe
� Pzu�sase t7bject�ves IYtet� � 5'es, � T*To - � In 1'arc L� No I.onger 1Ygglica6�eIt1I1"�oa1s t�chieued
zencies
Yeaw 3 Follr�w Up Date __
Pz�btic �zt�poSe �11'ajectives A�et: ��es Gt Nd C3 Tn Parc L71�1ta Longzr t�pplicablelAiI �oals Ac�izvec€
Ye�r 4 Fpllow-llp nat�
Puh�ic k�wp4se {1b�ectiv�s l�t. � Yes Q I�Tq � Zn Part II I�TO Longes Applicabletl� II Gaals AchiaKed
L7e�cien�ies
Year � Fc�llo�u Up T�at�
Public Ftupose f�blect�ves Mc:t, Cl �es C� �Va ❑ in 1?art C3 Na I.anger ApplicableJAII �oals Achieve3
FOLLOW-UP ON JOB IMPACTS
❑ l�TU j£#B I1k�I�ACT End Qf �'ear Fra�low �Jp Tuformation {Actt�at Resalts�
��ar 1 �- Y�ear 2 � Year 3� 3Z�ar 4_ ���ar S
#,�t?BS �TfEriT�D (�tilltime per�n�erit�
AYerage Wage
#�OBSjiE7':47NE➢ �£ulltune perman�nt�
qc.-3ay
DEP Cliy C011IlCIl �UNCIL °AT31�796 GREEN SHEE N_ 3 5 6 51
INRIAVDATE INRIAVDATE
CONTACf PERSON 8 PHONE O DEPARTMENT DIRECTOR � CITV CAUNCIL
Mazcia Mcermond, 266-8570 ASSIGN � cmarronNer � CITY CLEflK
MUST BE Ot�1 COUNCR AGENW BY (DA'f� NUYBER FOR O BUIX'aEf D�RECTO � FlN. & MGT. SERVICES DI0.
110U71NG
]VIazC]l� iSI( OROEP � MAVOR (OR ASSISTANT) �
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACfION RC-0UESTED:
Approval of resolution establishing ffie use of a public purpose analysls for City financial assistance packages to the private sector.
FECOMMENDA7IONS: approve (A) m Reject (a) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLI.OWING �UESTIONS:
_ PLANNiNG CAMMISSION _ pV11 SEfiVIGE CAMMISSION t. H25 tlNS Pei:Anftlsm eYe� wOrked untle[ d CAntfaIX fOr M115 d0pe(hnBnt? -
_ CIB COMMITfEE _ YES 'NO
_ S7AFF 2. Has this personff�rm ever been a ciry employee?
— VES NO
_ DIS7RIC7 CAURT _ 3. poes this rwnfirm ssess a skill not nortnall
pe po y possessetl by any curteM city empioyee?
SUPPORTS WHICH COUNCIL O&lECTIVE7 YES NO
Explafn all yes answers on separate sheet end atteeh to green sheet
INITIATING PROBLEM, ISSUE. OPPORTUNITV (Who, What. When, Wnere, Why):
City Council gave direcfion to Council Reseazch in Council FIle N 95-421 to prepaze a report which analyzes current City jobs
creaaon and retendon policy and practices. The findings and recommendaaons indicated that the current practice for analyzing job
impacts in the context of all public benefiu accrued from undertaking a patticulaz project were insufficient. Additionally, the report
indicated that the City's current practice of requiring conclusion of a First Source Agreement was unnecessary for the provision of
referrals of potential employees from job training programs associated with the City.
ADVANTAGES IF APARWED:
The City Council wIll have superior inforniauon available on the range of public putposes to be served by individual projects, as
well as the costs involved.
DISADVANTAGES IFAPPROVED:
.5^. R1 ry
� (,i.x,3°Wii ,.,.s��:' �6r^i:a?�G�S
Gia,:;w;...
None.
� ' ,; �' 3`
14:.t� � .1 >�"��.�
DISADVANTAGES IF NOTAPPROVED:
The City Councii will not have the information provided by the "public purpose summary." �
TOTAL AMOUNT OF THANSACTION S COST/REVENUE BUDGETEO (CIRCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBEH
FINANCIAL INFOpMATION: (EXPLAIN)