EDA

Blaine City Hall City of Blaine 10801 Town Sq Dr NE Blaine, MN 55449 Anoka County, Minnesota Minutes EDA The purpose of the Blaine Economic Development Authority is to increase the City’s commercial/industrial tax base, provide employment opportunities, undertake redevelopment to enhance and maintain neighborhood economic stability, and address special needs, such as senior housing. As authorized under Minnesota State statutes, the Blaine City Council also serves as the Blaine Economic Development Authority. Thursday, November 2, 2017 7:20 PM Council Chambers 1 Call to Order The meeting was called to order at 7:23 p.m. by Vice President Swanson followed by the Roll Call. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Clark Arneson; Planning and Community Development Director Bryan Schafer; Acting Interim Police Chief/Safety Services Manager Dan Szykulski; Director of Public Works Jon Haukaas; Finance Director Joe Huss; Economic Development Coordinator Erik Thorvig; Public Services Manager/Assistant City Manager Bob Therres; City Engineer Jean Keely; Communications Technician Roark Haver; Senior Engineering Technician Al Thorp; and City Clerk Catherine Sorensen. Present: 5 - Commissioner Hovland, Commissioner King, Commissioner Swanson, Commissioner Jeppson, and Commissioner Garvais Absent: 2 - Commissioner Clark, and President Ryan 3 Minutes 3-1 OCTOBER 19, 2017 EDA MINUTES Attachments: 10-19-17 EDA Moved by Commissioner Hovland, seconded by Commissioner King, that the Minutes of October 19, 2017, be approved. Motion adopted 5-0. Aye 5 - Commissioner Hovland Commissioner King Commissioner Swanson Commissioner Jeppson Commissioner Garvais 4 New Business City of Blaine Page 1 EDA Minutes November 2, 2017 4-1 HOLDING A PUBLIC HEARING AND APPROVING A RESOLUTION OF SUPPORT FOR A MINNESOTA INVESTMENT FUND LOAN APPLICATION ON BEHALF OF GENERAL PATTERN COMPANY Attachments: GPC Locations Economic Development Coordinator Thorvig stated General Pattern Company (GPC) is a family owned single source solution for plastic part manufacturing including design, prototyping, tooling and forming of plastic parts. GPC been operating in Minnesota for over 95 years and has operated for the last 34 years from its sprawling 180,000 square foot campus in the City of Blaine in the Northstar Industrial Park just south of 85th Avenue near 35W. GPC also has a 55,000 square foot site off of Radisson Road, north of 109th Avenue. The company currently employs 112 people. He said GPC is embarking on an expansion project that will include purchase of a 28,800 sf. building at 3100 84th Lane for $1,750,000; purchase of new machinery and software for $1,195,000 and $538,000 in renovations to the purchased building for a project total of $3,483,000. The expansion will allow for the creation of 50 jobs (35 direct reports, 5 managers and 10 sales/support staff). Mr. Thorvig explained that GPC has been working with the City of Blaine and the Minnesota Department of Employment and Economic Development (DEED) to help identify programs that could assist in the expansion. GPC is proposing to finance the project with a combination of bank financing, SBA 504 loan, cash equity and a $450,000 loan from the Minnesota Investment Fund (MIF), a DEED program. The MIF provides financing to help add new workers and retain high-quality jobs on a statewide basis in manufacturing, and technology-related industries. The MIF loan application is prepared and submitted by City staff and funds are awarded to the local unit of government (EDA) who provide the loan to the eligible business. Therefore the City will act as a pass through and administrator for the loan however there is no financial risk to the City if the loan defaults. Vice President Swanson opened the public hearing at 7:26 pm. Being no comments he closed the public hearing at 7:26 pm. Commissioner King inquired about salary range for the additional jobs being proposed. CEO Denny Reiland introduced his daughter and President Stacy Reiland and said General Pattern was started by his grandfather in 1922. He shared how the number of employees has increased from eight in 1983 to 130 today and projected to be 180 after the expansion. He said the average wage will be $18/hour and explained how they conduct light manufacturing and do their own tooling, all functions of which will be covered in the expansion. He invited the EDA City of Blaine Page 2 EDA Minutes November 2, 2017 and community to attend and view their annual Christmas display which is constructed by employees during work downtime, displayed year round, and is similar to displays done in the past at Dayton's. Commissioner Hovland said the City is pleased to have General Pattern in Blaine and said this is a great example of business expansion. Moved by Commissioner Hovland, seconded by Commissioner King, that EDA Resolution No. 17-12, “Holding a Public Hearing and Approving a Resolution of Support for a Minnesota Investment Fund Loan Application on Behalf of General Pattern Company,” be approved. Motion adopted unanimously. Aye 5 - Commissioner Hovland Commissioner King Commissioner Swanson Commissioner Jeppson Commissioner Garvais 5 Other Business Mr. Thorvig referred to an upcoming meeting to review the Economic Development portion of the Comprehensive Plan which will be held on November 15. Informational; no action required. 6 Adjournment Moved by Commissioner Hovland, seconded by Commissioner King, to adjourn the meeting at 7:33 p.m. Motion adopted unanimously. Aye 5 - Commissioner Hovland Commissioner King Commissioner Swanson Commissioner Jeppson Commissioner Garvais City of Blaine Page 3