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2013_1125_packet
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12/6/2013 1:42:16 PM
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11/21/2013 3:34:05 PM
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KI;�6_01SEN+h+E <br />REQUEST FOR COUNCIL ACTION <br />Date: 11/25/2013 <br />Item No.: I La <br />Department Approval City Manager Approval <br />Item Description: Public Hearing to Consider Applying to the Department of Employment <br />and Economic Development's Minnesota Investment Fund State Loan <br />Program for Northern Brewer LLC <br />BACKGROUND <br />City staff has been working with Northern Brewer LLC, a Roseville business currently located at <br />1945 County Road C2, and Greater MSP, a regional economic development organization, to help <br />secure a loan from the State of Minnesota to assist Northern Brewer to expand their business <br />operations in Roseville. <br />7 Northern Brewer along with its subsidiary, Midwest Supplies, is the largest provider of home <br />s brewing and home winemaking supplies in America. Because of increased interest in home <br />9 brewing, the company is needing to grow its headquarters and product development staff along <br />lo with it warehouse distribution/fulfillment activities. <br />11 <br />12 While Northern Brewer does not serve craft breweries directly, it has played a critical role in the <br />13 growth of the craft brewing industry and in job creation in the Twin Cities and the state of <br />14 Minnesota. Many customers or former employees of Northern Brewer developed their product <br />15 line and business concept while using our products and learning from our industry insight. These <br />16 home brewers turned business owners have founded the following brewing companies: Surly, <br />17 Fulton, Boom Island, Harriet, Excelsior, 612, Dangerous Man, Indeed, and Pour Decisions, <br />18 among others. These business have enriched their communities and provide hundreds of jobs <br />19 and significant business investments, in addition to offering the community award winning craft <br />20 beer. <br />21 <br />22 Northern Brewer currently operates out of a 48,000 sq. ft. warehouse /fulfillment center in <br />23 Roseville where it employs 120 people. In order to support Northern Brewer's existing and <br />24 planned growth, larger space is needed. They plan to lease a 76,000 sq. ft. facility at 2221 <br />25 Highway 36 at the intersection of 1-35W and Hwy 36. This building will support their <br />26 fulfillment operation, serve as their company headquarters, allow space for Northern Brewer <br />27 branded product development and handle retail store distribution for their growing store <br />28 footprint. Northern Brewer will sign an 8.5 year lease, including a right of first refusal for <br />29 another 20,000 sq. ft. that is adjacent to the current space. Northern Brewer will add 61 new <br />30 positions over the next two years, with an average salary for those positions over $27.00 per <br />31 hour. <br />32 <br />33 On behalf of the city of Roseville, GREATER MSP has reviewed the companies financials and <br />34 credit reports and has found no adverse findings or concerns regarding, but not limited to, tax <br />Page 1 of 2 <br />
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