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<br /> -- <br /> .- - , <br /> I CITY OF ARDEN HILLS <br /> ft MEMORANDUM <br /> DATE: June 30,1997 <br /> I TO: Mayor and City Council <br /> I FROM: Kevin Ringwald, Community Development Directo~ <br /> I SUBJECT: Resolution No. 97-32, CPI Guidant <br /> Request <br /> I The City Council is requested to approve Resolution No. 97- 32 (Exhibit A). Resolution No. 97- <br /> 32 authorizes the City to make an application (phase II) to the Minnesota Department of Trade <br /> and Economic Development (DIED) for a loan and/or forgivable loan in the amount of $200,000 <br /> I to $300,000 to facilitate the expansion of the research and development facilities at ePI Guidant. <br /> Backfround <br /> I CPI is a world leader in the medical device industry, specifically cardiac rhythm management. <br /> Exciting new therapies are now being researched by CPI scientists in the application of atrial <br /> Ie defibrillation and congestive heart failures, The development of new technologies and associated <br /> devices will enhance the market penetration into previous drug only therapies and thereby <br /> significantly grow the entire market for pacing devices. Being a leader in the field, CPl will gain <br /> I market share and increase production volume to several times the current output, This directly <br /> translates into more immediate headcount in the research and development located in Building E <br /> and, within a shon development cycle, more production personnel with associated support staff, <br /> I It is currently estimated, by CPI, that the project will cost approximately $4,000,000 through <br /> calendar year 1998. The estimated costs include construction ($3,200,000) and <br /> I equipment/furnishings ($800,000). It is currently estimated. by CPI, that the project will cause <br /> the hiring of75 employees over the next two calendar years. Of the 75 jobs to be created, <br /> approximately 50 will be technical and 25 will be administrative. The average pay range for <br /> I these jobs, without benefits, will range from $11.50 per hour to $32.00 per hour. <br /> Budl!et Impact <br /> I The Staffis attempting to structure this deal such that the City will receive at least $100,000,00 <br /> for its efforts. The $100,000,00 would be earmarked, by DIED, for facilitating business <br /> , opponunities within the City. <br /> Recommendation <br /> I Authorize the Mayor and City Administrator to execute Resolution No. 97-32, <br /> ~ <br /> I <br /> - ----- <br />