Item Coversheet

Board Action Request

Item Description:
Neg Agmt PR00000544 with the City of Rogers for the Rogers Business Expansion project, 10/26/18-12/31/20, NTE $836,000

BE IT RESOLVED, that consistent with Economic Development Infrastructure Fund guidelines, the County Administrator be authorized to negotiate Agreement PR00000544 with the City of Rogers for extraordinary costs related to the Rogers Business Expansion project, during the period October 26, 2018 through December 31, 2020, with the not to exceed amount of $836,000 (Economic Development Infrastructure Fund - CP 1002195); that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the agreement and related documents on behalf of the county; and that the Controller be authorized to disburse funds as directed.


History: In 2015, the Economic Development Infrastructure Fund (EDIF) was formed and funded under the county’s Capital Improvement Program as a tool to help create and retain jobs, leverage private investment, and increase the tax base.


Under the EDIF Program, cities and development authorities in Hennepin County are eligible to apply for assistance to offset extraordinary costs and infrastructure upgrades associated with city-supported business expansion and new construction projects that create a minimum of 10 new, permanent, full-time jobs paying at least $13.01 in hourly wages. Cities must demonstrate that all other sources, private and public, are insufficient for the project to move forward. Requests for funding are reviewed based on the following criteria:


  • Job creation and/or retention

  • Need for financial assistance, including justification for use of county resources

  • Readiness to proceed

  • Tax base enhancement

  • Leverage from private or other public sources

  • Alignment with other county priorities and interests


The City of Rogers has requested funding to assist with a $73.6 million expansion project for Graco Minnesota Inc., a manufacturer of fluid-handling equipment and systems. Graco is headquartered in Minneapolis. Within three years of the expansion, the project will directly impact 464 jobs (54 new, 410 retained) with wages on average of $20 per hour; in addition, another 41 new jobs are projected in years four and five.


This project involves the expansion of an existing 327,000 square foot primarily manufacturing facility to a 762,000 square foot facility with manufacturing, office, and lab space. Soil corrections, utilities, and stormwater improvements qualify as eligible costs under EDIF’s guidelines.


The estimated taxable market value of the site is estimated to double from $12.3 million to approximately $25.4 million as a result of the project.


The city’s financial consultant has confirmed a gap of approximately $914,000 between project costs and private equity and city and state financing sources due to the extraordinary costs noted above. Staff recommends an $836,000 EDIF award (Economic Development Infrastructure Fund – CP 1002195) to the city to help fill the project gap. Tax Increment Financing and the Department of Employment and Economic Development’s Minnesota Investment Fund and Job Creation Funds will provide city and state funding.


Current Request: Authorization to negotiate Agreement PR00000544 with the City of Rogers for the Rogers Business Expansion project during the period of October 26, 2018 through December 31, 2020 with a not to exceed amount of $836,000.


Impact/Outcomes: Rogers Business Expansion project will facilitate a $73.6 million business expansion, retain 410 jobs, create 54 new jobs within three years of completion, and increase the estimated taxable market value by an estimated $13 million.