HomeMy WebLinkAboutResolution 082-2014 RESOLUTION NO. 82-14
RESOLUTION AUTHORIZING THE EXECUTION OF A DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF BROOKINGS, SOUTH DAKOTA
A N D 3 M C O M P A N Y, WHICH IS AN AGREEMENT FOR ECONOMIC
DEVELOPMENT OF AND IN THE CITY OF BROOKINGS; AUTHORIZING AN
ECONOMIC DEVELOPMENT GRANT AND THE EXPENDITURE OF FUNDS FOR
ECONOMIC DEVELOPMENT PURPOSES, ALL AS SET FORTH IN THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF BROOHINGS AND 3M
COMPANY, AND AUTHORIZING THE DOCUMENTS TO EFFECTUATE THE
TERMS OF THIS RESOLUTION
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota(the
"City"), as follows:
The City of Brookings (referred to herein as the "City") has determined that it is
essential to the economic vitality of the City to promote economic and industrial development
in the City through, in part, the expansion of quality manufacturing companies; and
3M Company(hereafter"3M"), a diversified, innovation and manufacturing company
whose products are sold worldwide, identified the City of Brookings as a potential site for a
facility expansion and the manufacturing of new product lines; and
The City recognizes 3M Company as a quality manufacturing company whose
products are recognized and sold worldwide; and
The expansion of the 3M F a c i 1 i t y i s an excellent economic development
opportunity for Brookings, particularly because of 3M Company's long history in the
community as a key employer; and
The Governor's Office of Economic Development(GOED),the Brookings Economic
Development Corporation(BEDC) and the City have worked cooperatively to develop economic
deveiopment incentives necessary to induce 3M to select Brookings as the site for its expanded
facility and production capabilities ; and
Based upon the recruitment efforts of GOED, the BEDC and the City, and the offer
of economic incentives by the City and GOED necessary to induce and assist 3M toselect
Brookings as the site for its expanded facility and production capabilities, the City of Brookings
has been selected as the p r o p o s e d site of 3M's expanded Facility and production capabilities,
with construction to begin in 2015; and
3 M C o mp any's e xp an s i o n will consist of two phases,with the first phase ("Phase
I") including various plant modifications,the acquisition of an estimated$11.7 Million Dollars
in new equipment, and the creation of 29 additional FTE positions; and
The second phase of the Project("Phase II") includes the construction of an estimated
$16.5 Million Dollar, forty-four thousand(44,000) square foot building addition,the acquisition
of an estimated$40 Million Dollars in equipment over a five year(2014-18)time period, and the
creation of 60 additional FTE positions; and
The City has the authority, pursuant to South Dakota Codified Laws, particularly SDCL
9-12-11, SDCL 9-54-1 and SDCL 10-52A-2, to promote the City and to provide through
economic development grants the incentives which are necessary to cause economic
development projects such as the 3M Company Facility expansion to choose to locate and
expand its facilities, equipment and workforce in Brookings; and
Because of the significant benefits the City of Brookings will receive if the 3M expansion
is completed in Brookings,the City of Brookings has ofFered economic development incentives,
described as follows:
An economic development grant to 3M Company in an amount equal to
three-fourths(3/4) of the municipal sales tax paid to add production
equipment for Phase I and Phase II of the expansion,which grant shall be
an amount which is equivalent to a reimbursement of three-fourths(3/4)of
actual municipal sales tax paid on equipment purchases for Phase I and
Phase II paid by 3M Company,with the grant amount not to exceed
$775,500.
The economic incentive described above to be provided by the City of Brookings: (i) is
set forth in the Development Agreement referenced above, (ii) is subject to detailed requirements
and milestones set forth in the Development Agreement, and(iii) is determined by the City to
assure the location of both Phases of the 3M expansion in Brookings, and(iv)will lead to
substantial economic benefits and increased employment in the City of Brookings and
surrounding region; and
The City of Brookings,hereby finds that the agreement to provide economic incentives as
stated in this Resolution and set forth in detail in the Development Agreement, a copy of which
is available at City Hall for public inspection, are consistent with the substantial benefits to be
received by the City of Brookings if the 3M expansion is completed in Brookings, and
The City of Brookings intends to complete the transactions set forth herein pursuant to
the agreements and documents consistent with this Resolution,which are or will be incorporated
in a Development Agreement between 3M Company and the City of Brookings.
The transactions, grant and incentives set forth herein and in the Development Agreement
between the parties hereto are hereby authorized.
The Mayor,the City Manager,the City Clerk and the City Attorney are hereby authorized
to execute on behalf of the City the documents and grant payments required to complete the
transactions described herein, including the Development Agreement, and such other documents
and Agreements which are consistent with the terms of this Resolution and the Development
Agreement.
Dated this 3`d day of October, 2014.
CITY OF BROOKINGS,SD
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Tim Reed,Mayor
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ornes,City Clerk