City Council Resolution 2019-92WRIGHT COUNTY, MINNESOTA
CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2019-92
RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND
APPLICATION IN CONNECTION WITH ULTRA MACHINING COMPANY, INC.
(UMC, INC.)
WHEREAS, the City of Monticello, Minnesota, desires to assist UMC, Inc., a precision
machining company, which is proposing to construct a new 52,000 square foot production
facility in the City and create 60 new full-time equivalent (FTE) jobs over the next three years;
and
WHEREAS, the City of Monticello understands that UMC, Inc., through and with the
support of the City, intends to submit to the Minnesota Department of Employment and
Economic Development an application for an award and/or rebate from the Job Creation Fund
(JCF) Program in the amount of $175,000; and
WHEREAS, the City of Monticello held as City Council meeting on December 9, 2019,
to consider this matter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MONTICELLO, Minnesota, that, after due consideration, the Mayor and the City Administrator,
of the City of Monticello, Minnesota, hereby adopts the following finds of fact related to the
project proposed by UMC, Inc. and its application for an award and/or rebate from the Job
Creation Fund Program and express their approval.
The City Council hereby finds and adopts the reasons and facts supporting the following findings
of fact for the approval of the Job Creation Fund Program application.
Finding that the proposed project is in the public interest because it will encourage the
growth of commerce and industry, prevent the movement of current or future operations
to locations outside of Minnesota, result in increased employment in Minnesota, and
preserve or enhance the state and local tax base.
a. The proposed expansion is a new 52,000 square foot precision machining facility.
b. UMC, Inc. had informed the City that it was looking at other possible locations
outside of Minnesota and that the financing package would need to offset the
fundamental business reasons to not move the new expansion project to those non -
Minnesota sites. With that in mind, the local and state funding assistance was
structured so as to encourage UMC, Inc. to keep its expansion in Minnesota versus
seeing it leave the State. While the $175,000 grant request which is only 1.62 percent
of the overall project cost of $10,831,000, it is nonetheless an important cost offset for
UMC as it moves in the new building and begins to hire new staff at the facility.
UMC, Inc. has indicated that it will create at least 60 new full time equivalent (FTE)
at average wages of between $22 to $28 per hour over the next three years as part of
the expansion project.
d. The real property taxes of the new facility are estimated to be about $100,000 per
year over the next 10 years.
2. Finding that the proposed project, in the opinion of the City Council, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future.
a. UMC, Inc. expressed to City officials that the proposed project would not be able to
proceed with out the help from the City and the State with assistance provided in the
form of Tax Increment Financing (TIF), Minnesota Investment Fund (MIF) and Job
Creation Fund (JCF).
3. Finding that the proposed project conforms to the general plan for the development or
redevelopment of the City as a whole.
a. UMC's proposal is in line with the City's adopted Comprehensive Plan goals
pertaining the economic development which are noted below:
"Attracting and Retaining Jobs" - UMC proposes to create 60 new FTE jobs
"Expanding the Tax Base" - UMC's new building will yield $100,000/year in taxes
b. The UMC expansion site is a vacant development ready parcel that is zoned for light
industrial uses. City services are already present at the site. Development of the
parcel, along with other vacant land tracts in this general area, has been expected to
occur in the near to mid-term future.
4. Finding that the proposed project will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development of the project by private
enterprise.
a. UMC had recently provided costs estimates indicating that the facility expansion
project (with equipment purchases included) carries a price tag of $10,831,000. The
amount of proposed public funding is $1,506,000 which only 13.91 percent of the
project cost. UMC previously informed City officials that it would not be able to
move forward on the expansion project without public assistance from the following
programs: TIF, MIF and JCF. The City believes that the proposed funding assistance
is a reasonable approach to support UMC in pursuing the development of its new
52,000 square foot facility.
Adopted by the City Council of Monticello this 91h day of December, 2019.
Jef&,I,
ity Administrator
rian Stumpf., May