Item Coversheet

A.2.


Shakopee City Council
February 21, 2017

FROM:Samantha DiMaggio, Economic Development Coordinator
TO:Mayor and City Council
Subject:
Grant Agreement and Conflict of Interest Disclosure for Anchor Glass Container Corporation
Policy/Action Requested:
Authorize execution of Minnesota Investment Fund Grant Contract and Conflict of Interest Disclosure Form required by the State of Minnesota for award to Anchor Glass Container Corporation.
Recommendation:
Staff recommends authorization of the proposed grant contract and conflict of interest disclosure form.
Discussion:

The Shakopee City Council held a public hearing on September 6, 2016 and authorized Resolution No. 7767 - A Resolution regarding the authorization and approval for a Minnesota Investment Fund application, grant agreement and forgivable loan in connection with Anchor Glass Container Corporation.  This resolution stated "the business subsidy of approximately $1,000,000 to be granted to Anchor Glass Container Corporation". After final negotiation between the City, Anchor Glass Container Corporation and the State of Minnesota Department of Employment and Economic Development (DEED) staff,  the final award amount has decreased to $400,000. In return, Anchor Glass Container Corporation will retain approximately 280 full time positions. 

 

The City of Shakopee has $130,000 in Minnesota Investment Funds which were set aside to be used as a revolving loan fund. DEED has requested that the City of Shakopee utilize $65,000 of these fund to assist Anchor Glass, in return, they will award $400,000 in additional funds.

Budget Impact:
There is no additional budgetary impact as these are State of Minnesota funds.
ATTACHMENTS:
Description
Res. No. 7767
MIF Grant Contract Anchor Glass REVISED 2/21/17