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Brookings City Council
October 3, 2014
The Brookings City Council held a special meeting on Friday, October 3, 2014 at 8:00 a.m., at
City Hall with the following members present: Mayor Tim Reed, Council Members Dan Hansen,
Ope Niemeyer, Keith Corbett,John Kubal,Tom Bezdichek and Jael Thorpe. City Attorney Steve
Britzman, City Manager Jeffrey Weldon and City Clerk Shari Thornes were also present.
Executive Session. A motion was made by Kubal, seconded by Hansen, to enter into executive
session at 8:00 a.m., pursuant to SDCL 1-25-2 for purposes of consulting with legal counsel
about contractual matters with the City Manager, City Attorney, City Clerk and AI Heuton
present. Deputy Mayor Corbett presided during executive session. A motion was made by
Corbett, seconded by Hansen,to exit executive session at 8:35 a.m. All present voted yes;
motion carried.
Resolution No. 82-14. A motion was made by Corbett, seconded by Hansen, to approve
Resolution No. 82-14, a Resolution authorizing the execution of a Development Agreement by
the City of Brookings, SD, which is an Agreement for Economic Development of and in the City
of Brookings; authorizing economic development rebates, all as to be set forth in an
Development Agreement, and authorizing the documents to effectuate the terms of this
Resolution. All present voted yes; motion carried.
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 Brookings 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 qual+ty 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 Facility is 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 development
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 proposed site of 3M's expanded Facility and production capabilities, with
construction to begin in 2015; and
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3M Company's expansion will consist oftwo 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-fourthousand (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, particularfy SDCL 9-12-11,
SDCL 9-54-I 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
facifities, 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 t�he 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
agreerr�ents 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.
Adiourn. A motion was made by Hansen, seconded by Corbett,to adjourn. AI! present voted
yes; motion carried. Meeting adjourned 8:44 a.m.
CITY OF OOKINGS
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Shari Thornes, City Clerk