HomeMy WebLinkAbout4B - Economic Recovery Grant Request & KATUN Proposal
DATE:
4(b)
KAY SCHMUDLACH, ASSISTANT CITY MANAGER
CONSIDER STATE ECONOMIC RECOVERY GRANT REQUEST
AND KATUN PROPOSAL
MARCH 15, 1993
CONSENT AGENDA:
PREPARED BY:
SUBJECT:
INTRODUCTION:
Approximately a month a90 the city was made
aware of the opportunit1es for a Bloomin9ton
business to be relocated in our commun1ty.
This agenda item is being prepared to request
EDA approval of a proposal that the City would
like to make to the business for relocation
into Prior Lake.
BACKGROUND:
The Katun Corporation is a international
business who's function is to manufacture and
distribute the replacement parts for co~iers
and other duplicating instruments. The '::.:y
was made aware that Katun Corporation will oe
moving their distribution center to Iowa and
relocating their world headquarters. The
world headquarters and the research and
development components of the business would
be kept in Minnesota. The City of Prior Lake
would like to submit a proposal to Katun
Corporation to bring the world headquarters
into our Business Office Park.
DISCUSSION:
Because of the confidentiality of the proposal
the information and the actual proposal will
not be made public until the proposal is
accepted or rejected. The City has been
working with Roger Guenette and Jim Hill Jr.
to prepare the financials and determine the
impact on our financing for the Business
Office Park. The City has used a mixture of
financing options in order to bring this deal
t0gether. First and foremost the City will
uS1ng Tax Increment Financing to reduce the up
front cost for the business. Future increment
captured will be used to pay back the City for
costs associated with developing the Park. In
addition to that the State has made a
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 4474230 I Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPI.DYER
:
RECOMMENDATION:
ALTERNATIVES:
ACTION REQUIRED:
preliminar~ proposal to the state of Minnesota
for econom~c recovery grant. The city has
been notified that we would receive $250,000
of economic recovery grants based on the
proposal for the Katun corporation. The City
would like to exercise the option to receive
those grants. Those grants would be received
by the City and in turn incorporated into the
pro~osal for Katun Corporation to make it more
des1rable for them to locate in Prior Lake.
staff will be walking through the Katun
proposal at the EDA meeting and available to
address any comments or questions at that
time.
The financial proposals have been attached for
your preliminary review. The balance of the
Katun proposal will be presented at the
Council meeting.
staff strongly recommends that the
consider the Katun proposal. staff
request that the EDA support the request
Economic Recovery Grant through the state
Minnesota.
EDA
would
for
of
Prior Lake City Council has the following
alternatives to consider.
l. Approve the Katun Corporation proposal as
prepared and direct staff to make the
presentation to Katun.
2. Accept the state Economic Recovery Grant
request in order to facilitate the
receipt of $250,000 state Economic
Recovery Grant.
3 .
Deny staff's request to make
Corporation proposal for a
reason.
the Katun
specific
4. Deny the request for state Economic
Recovery Grant at this time for a
specific reason.
Motion by Council
corporation proposal
staff to make the
Corporation.
the
and
to
Katun
direct
Katun
to accept
as written
presentation
A motion to accept the state Economic Recovery
Grant application and direct staff to submit
it to the state for their receipt in order to
receive $250,000 in state funds.