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KI;�6_01SEN+h+E REQUEST FOR COUNCIL ACTION Date: 11/25/2013 Item No.: I La Department Approval City Manager Approval Item Description: Public Hearing to Consider Applying to the Department of Employment and Economic Development's Minnesota Investment Fund State Loan Program for Northern Brewer LLC BACKGROUND City staff has been working with Northern Brewer LLC, a Roseville business currently located at 1945 County Road C2, and Greater MSP, a regional economic development organization, to help secure a loan from the State of Minnesota to assist Northern Brewer to expand their business operations in Roseville. 7 Northern Brewer along with its subsidiary, Midwest Supplies, is the largest provider of home s brewing and home winemaking supplies in America. Because of increased interest in home 9 brewing, the company is needing to grow its headquarters and product development staff along lo with it warehouse distribution/fulfillment activities. 11 12 While Northern Brewer does not serve craft breweries directly, it has played a critical role in the 13 growth of the craft brewing industry and in job creation in the Twin Cities and the state of 14 Minnesota. Many customers or former employees of Northern Brewer developed their product 15 line and business concept while using our products and learning from our industry insight. These 16 home brewers turned business owners have founded the following brewing companies: Surly, 17 Fulton, Boom Island, Harriet, Excelsior, 612, Dangerous Man, Indeed, and Pour Decisions, 18 among others. These business have enriched their communities and provide hundreds of jobs 19 and significant business investments, in addition to offering the community award winning craft 20 beer. 21 22 Northern Brewer currently operates out of a 48,000 sq. ft. warehouse /fulfillment center in 23 Roseville where it employs 120 people. In order to support Northern Brewer's existing and 24 planned growth, larger space is needed. They plan to lease a 76,000 sq. ft. facility at 2221 25 Highway 36 at the intersection of 1-35W and Hwy 36. This building will support their 26 fulfillment operation, serve as their company headquarters, allow space for Northern Brewer 27 branded product development and handle retail store distribution for their growing store 28 footprint. Northern Brewer will sign an 8.5 year lease, including a right of first refusal for 29 another 20,000 sq. ft. that is adjacent to the current space. Northern Brewer will add 61 new 30 positions over the next two years, with an average salary for those positions over $27.00 per 31 hour. 32 33 On behalf of the city of Roseville, GREATER MSP has reviewed the companies financials and 34 credit reports and has found no adverse findings or concerns regarding, but not limited to, tax Page 1 of 2