Local Option Review Team

AGENDA LOCAL OPTION REVIEW TEAM Thursday, January 30, 2020 12:00 p.m. Fremont Municipal Building 400 East Military Avenue Fremont, Nebraska 1. Call to Order 2. Approval of minutes from October 30, 2019 meeting. 3. Review Fund Balance. 4. Consider Local Option Economic Development Fund Application for Wholestone Farms II, LLC. 5. Adjourn. This agenda was posted at the Municipal Building and was distributed to the members of the Local Option Review Team on January 24, 2020. The official current copy is available at City Hall, 400 East Military Avenue. A copy of the Open Meeting Law is posted for review by the public.  CITY OF FREMONT LOCAL OPTION REVIEW TEAM OCTOBER 30, 2019 – 1:00 p.m. A meeting of the Local Option Review Team was held on October 30, 2019 at 1:00 p.m. in the 2nd Floor Conference Room at 400 East Military Avenue, Fremont, Nebraska. The meeting was preceded by publicized notice in the Fremont Tribune and the agenda displayed in the Municipal Building. The meeting was open to the public. A continually current copy of the agenda was available for public inspection at the office of the City Administrator, 400 East Military Avenue. The agenda was distributed to the Local Option Review Team on October 18, 2019 and posted, along with the supporting documents on the City’s website. A copy of the open meeting law is posted continually for public inspection. ROLL CALL Roll call showed Members Benson, Horeis, McClain, and Vobejda present; George present after item 4. Oliva and Jacobus absent. 5 present, 2 absent. Others in attendance included Lottie Mitchell, City of Fremont; Tim Gesell and Shawn Morrow, 505 Brewing Company. APPROVAL OF MINUTES FROM SEPTEMBER 5, 2019 MEETING. Moved by Member Benson and seconded by Member Horeis to approve the minutes of the September 5, 2019 meeting. Ayes: Horeis, McClain, Benson, and Vobejda. Motion carried 4-0. CONSIDER ADJUSTING SET MEETING TIME. Mitchell gave overview. General discussion regarding moving set meeting to last Thursday of the month. No motion received. REVIEW FUND BALANCE AND SUMMARY OF LOCAL OPTION ECONOMIC DEVELOPMENT FUND PROJECTS. Mitchell reviewed fund balance and gave overview of past projects. No motion received. CONSIDER LOCAL OPTION ECONOMIC DEVELOPMENT FUND APPLICATION FOR 505 BREWING COMPANY. Mitchell introduced applicants. Tim Gesell and Shawn Morrow presented their application for 505 Brewing Company. Moved by Member Benson and seconded by Member Horeis to Local Option Economic Development Fund Application from 505 Brewing Company. Ayes: Horeis, McClain, Benson, Vobejda, and George. Motion carried 5-0. ADJOURNMENT Moved by Member Benson and seconded by Member McClain to adjourn at 1:42 p.m. Ayes: Horeis, McClain, Benson, Vobejda, and George. Motion carried 5-0. 1  STAFF REPORT TO: Local Option Review Team FROM: Lottie Mitchell, Grant Coordinator DATE: January 30, 2020 SUBJECT: WholeStone Farms II, LLC Local Option Economic Development Fund Application Recommendation: Recommend City Council approve application from WholeStone Farms II, LLC for a Local Option Economic Development Fund loan. Background: The City of Fremont has a Local Option Economic Development (LB840) Plan (the Plan) and loan fund for the purposes of creating new jobs, expanding the labor market, retaining existing jobs, attracting new capital investment, broadening the tax base, and providing economic diversification to ensure economic stability and vitality for the City of Fremont and surrounding areas. Applications are submitted to the plan administrator (City of Fremont) for review. Once the plan administrator has reviewed and determined the application is eligible for LB840 funds, the application is reviewed by the Citizens Advisory Review Committee (CARC) and the Local Option Review Team (LORT). The CARC reviews the application from the standpoint of compliance with the Plan. The LORT reviews the application from the standpoint of project feasibility and the potential future economic benefit to the community of Fremont. Both committees make recommendations to the City Council. The City Council will then consider the overall benefits to the community and will have final authority on approval of the application. WholeStone Farms II, LLC has submitted an application to the LB840 fund. They are proposing a $331,300,000 project with a series of capital improvements to modernize their existing facility. They currently employ over 1,300 people and intend to create an additional 815 new, full-time, benefited positions and are requesting a $1,300,000 Local Option Economic Development Fund (LB840) Loan. The requested terms of the LB840 loan are $1,300,000 at zero (0%) percent interest rate, forgiven over a sixty (60) month period, subject to the following conditions being met: 1) Year 1 – At least $20 million of investment made into the project by the end of first year. 2) Year 2 – At least $75 million of investment made into the project by the end of second year. 3) Year 3 – At least $150 million of investment made into the project by the end of third year. 4) Year 4 – 1600 full-time equivalent jobs (in total) by the end of the fourth year; average job wage must be at least $17.00 per hour with benefits. 5) Year 5 – 1900 full-time equivalent jobs (in total) by the end of the fifth year; average job wage must be at least $17.00 per hour with benefits. Fiscal Impact: Local Option Economic Development Fund - $1,300,000. WholeStone Project Recap/Proposed Timeline WholeStone Farms will complete a series of capital improvements to the existing facility in order to modernize the plant. A tentative schedule is shown below with brief descriptions, estimated costs, construction dates and jobs created for each project. New Waste Water Treatment Plant • New waste water treatment plant will be built to pre-treat water discharged to the city lagoons. • Estimated cost: $22 million • Timeline: Spring 2020 – Spring 2021 • Jobs created: none New Cut Floor • New pork fabrication floor with modern robotic equipment and straight-line layout. Creates a manufacturing area that is consistent with other recently built pork processing plants. • Estimated cost: $156 million • Timeline: Fall 2020 – Fall 2021 • Jobs created: none Snap Chill • New snap chilling cooler to rapidly reduce carcass temperature resulting in improved meat quality. • Estimated cost: $29 million • Timeline: Winter 2022 – Fall 2022 • Jobs created: none Rendering • New rendering facility to process material. Sized to handle two shifts of production. • Estimated cost: $37.5 million • Timeline: Summer 2020 – Fall 2021 • Jobs created: none Cold Storage • New cold storage facility to hold finished product prior to distribution to customers. • Estimated cost: $46 million • Timeline: Fall 2020 – Fall 2023 (completed in two phases) • Jobs created: none Equilibrium Coolers • New equilibrium coolers to hold inventory of hogs after snap chill and before fabrication. This is additional capacity required for second shift. • Estimated cost: $17 million • Timeline: Summer 2022 – Summer 2023 • Jobs created: approximately 800 Barn/Livestock • New livestock barn expansion to accommodate second shift. New livestock offices, meeting spaces and lockers. • Estimated cost: $7.5 million • Timeline: Summer 2022 – Spring 2023 • Jobs created: 15 Lockers/Office • Additional lockers, restrooms and other office improvements to support second shift production. • Estimated cost: $2.2 million • Timeline: Summer 2022 – Winter 2022 • Jobs created: none