Agendas & Minutes
Economic Development Commission
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CITY OF LAKEVILLE <br />ECONOMIC DEVELOPMENT COMMISSION <br />MEETING MINUTES <br />January 29, 2019 <br /> <br /> <br />1. Chair Scherer called the meeting to order at 4:00 p.m. in the Marion Conference <br />Room at City Hall. <br /> <br />Members Present: Comms. Collman, Dautel, Gillen, Matasosky, Scherer, Seiler, <br />Vlasak <br />Ex-officio members: Mayor Anderson, City Administrator Miller <br /> <br />Members Absent: Comm. Emond, Smith, Starfield <br /> <br />Others Present: David Olson, Community & Economic Development Director; Kati <br />Bachmayer, Economic Development Specialist; Travis Scoles, QA1 <br /> <br />2. Approval of October 30, 2018 Meeting Minutes <br /> <br />Comms. Collman / Matasosky moved to approve the minutes of the October 30 <br />meeting as presented. Motion carried unanimously. <br /> <br />3. Review of Proposed Terms and Conditions of Tax Increment Financing <br />Agreement from QA1 Precision Products Inc. <br /> <br />In October 2018, QA1 Precision Products Inc. submitted an application for Tax <br />Increment Financing (TIF) to assist in the development of a new 100,000-square- <br />foot manufacturing facility. The proposed building would be the third project <br />developed in Interstate South Logistics Park, located at County Road 70 and Dodd <br />Boulevard. The proposed project would replace two existing, adjacent buildings <br />owned by QA1 in Airlake Industrial Park and result in the retention of 95 existing jobs <br />(with an average salary of $51,000, not including benefits) and the creation of 44 <br />new full-time jobs in Lakeville over the next five years (with an average wage level of <br />$40,600 per year, not including benefits). The estimated total development cost of <br />this new proposed manufacturing facility is $11,459,000. The TIF application has <br />identified a financing gap of $3,000,000 for the project, as compared to development <br />costs in South Dakota and Indiana (caused by the cost of labor, real estate taxes, <br />and sales taxes on the one-time costs). The County Assessor’s Office has provided <br />an estimated market value of $6,000,000. <br /> <br />Staff recommends that the proposed QA1 project receive 95% of the captured <br />increment for a period of seven years. This would result in a not-to-exceed amount <br />of $526,015 in TIF assistance. The proposed timeline is two years less than the <br />maximum duration of nine years for an Economic Development TIF District. The <br />seven years of increment would be paid out over a period beginning in 2021 through
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