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Page 1 of 2 <br /> <br />DATE: April 11, 2016 <br /> <br />TO: Honorable Mayor and City Councilmembers <br />Sue Iverson, Acting City Administrator <br /> <br />FROM: Jill Hutmacher, Community Development Director <br /> <br />SUBJECT: Consideration of approval of tax abatement and award of Minnesota Investment <br />Fund loan for Land O’Lakes, Inc. <br /> <br /> <br /> <br />Requested Action <br />The City Council is requested to: <br />1. Hold a public hearing for an agreement to abate property taxes and to award a Minnesota <br />Investment Fund loan to Land O’Lakes, Inc. <br />2. Consider Resolution 2016-013 approving property tax abatement for certain real property <br />in the City pursuant to Minnesota Statutes, Section 469.1812 to 469.1815, approving a <br />Minnesota Investment Fund grant and loan and specifying the terms thereof <br /> <br />Land O’Lakes Headquarters Expansion <br />Land O’Lakes is planning a significant expansion of its headquarters facilities in Arden Hills <br />through which it proposes to increase its headquarters building by at least 145,000 square feet <br />and create an additional 200 jobs with wages of at least $18.00 per hour within two years of the <br />project’s completion. The Company estimates that it will spend approximately $80 million for <br />new construction, site costs, renovation of the existing company headquarters, and soft costs in <br />the next three years. Land O’Lakes’ expansion plans are contingent on the approval of a <br />package of public financial assistance. If approved, construction is expected to be complete by <br />December 31, 2018. <br /> <br />Request for Public Assistance <br />On February 29, 2016, the City Council approved a resolution of support for Land O’Lakes ’ <br />application to the Minnesota Job Creation Fund. The Cit y has been notified that the Minnesota <br />Department of Employment and Economic Development (DEED) will provide an award of up to <br />$1.9 million consisting of up to $900,000 in a job creation award and $1,000,000 in a capital <br />investment rebate. <br /> <br />PUBLIC HEARINGS – 7B <br /> <br /> <br /> <br />MEMORANDUM <br />