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HomeMy WebLinkAboutResolution 2012 (01)1 RESOLUTION AUTHORIZING ST. CROIX COUNTY'S PARTICIPATION IN THE 2 WISCONSIN ECONOMIC DEVELOPMENT BLOCK GRANT FOR ECONOMIC 3 DEVELOPMENT PROGRAM 4 Fiberstar, Inc. 5 6 Resolution No._L ( 2-61 2 7 8 St. Croix County, Wisconsin 9 10 WHEREAS, Federal monies are available under the Wisconsin Community 11 Development Block Grant program, administered by the State of Wisconsin, Department of 12 Commerce, for the purpose of economic development; and 13 14 WHEREAS, after public meeting and due consideration, the St. Croix County 15 Administration Committee has recommended that an application be submitted to the State of 16 Wisconsin for the following project: 17 18 Loan to Fiberstar, Inc. for business retention and expansion in the City of River 19 Falls 20 21 WHEREAS, it is necessary for the St. Croix County Board to approve the preparation 22 and filing of an application for the County to receive funds from this program; and 23 24 WHEREAS, the Wisconsin Department of Commerce has reviewed the need for the 25 proposed project and the benefits to be gained there from. 26 27 NOW, THEREFORE, BE IT RESOLVED that the St. Croix County Board of 28 Supervisors approves and authorizes the preparation and filing of an application for the 29 above named project. 30 31 BE IT FURTHER RESOLVED that the St. Croix County Administrator is authorized 32 to take the necessary steps to prepare and file the appropriate application for funds under this 33 program and sip all necessary documents on behalf of the County in accordance with this 34 resolution. 35 36 BE IT FURTHER RESOLVED that the grant award be deposited in a "Regional 37 Community Development Clearinghouse Account," managed by the West Central Wisconsin 38 Regional Planning Commission, for the sole purpose of disbursing CDBG funds on the 39 County's behalf for the project named above. 40 41 BE IT FURTHER RESOLVED that the County will contract with the West Central 42 Wisconsin Regional Planning Commission to administer the grant for an amount not to 43 exceed the funds provided by the grant for administration. 44 RESOLUTION AUTHORIZING ST. CROIX COUNTY'S PARTICIPATION IN THE WISCONSIN ECONOMIC DEVELOPMENT BLOCK GRANT FOR ECONOMIC DEVELOPMENT PROGRAM - Fiberstar, Inc.— Continued Offered by Administratio Committee This resolution was adopted by the St. Croix County Board of Supervisors on Cindy Campbe , — County Clerk County Board Vote: Yes No Abstain LC IL CLI Absent Yes- I No Abstain Absent Sharon Norton-Bauman I ❑ ❑ I ❑ Esther Wentz ❑ I F Ryan Sicard ❑ ❑ ❑ Daryl Standafer ❑ Buck Malick ❑ Lorin Sather E ❑ ❑ ❑ Roger Rebholz ❑ 1 1:1 ❑ I v n that the vote shown above-' t d correct. ,js rue an AI Chair, Administration Commitfe—e' LEGAL REVIEW Reviewed as to form on December 1, 2011 Don GiClen Don Gillen, Assistant Corporation Counsel LEGAL NOTE: None of FISCAL REVIEW ❑ There is a fiscal impact. 0 There is no fiscal impact. See attached Fiscal Impact Statement. Submitted By: Patrick Thompson Date: December 1,ZO11 Department: County Administrator Committee: Administration Resolution Title: Resolution Authorizing St. Croix County's Participation in the Wisconsin Economic Development Block Grant for Economic Development Program - Fiberstar, Inc. There is no fiscal impact on expenses or revenues There is @fiGcal impact on eXp8O8e8 or revenues Explanation: The Wisconsin Economic Development Corporation (WEDC) has asked St. Croix County to be the applicant for the Community Development Block Grant (CDBG) of $106,000, which includes $6,000 for grant administration. The County records the CDBG and the expenditure to West Central Wisconsin Regional Planning Commission/Regional Business Fund, Inc. who in turn loans out the money. The|oan payments will capitalize the Regional Business Fund, Inc. consolidated revolving loan fund to be used for other area business. Net impact on the County Budget is$O. FINANCE DIRECTOR ACTION: Z Approved by Finance Director Signature: MicheUePiethck Date: December6,2011 FISCAL IMPACT STATEMENT — REV. o9/12/oo11 Page St. Croix County Community Development Block Grant (CDBG) Economic Development Application The Wisconsin Economic Development Corporation (WEDC) manages the federally funded Community Development Block Grant (CDBG) Program for housing, public facilities and economic development for the State of Wisconsin. WEDC proposes to provide a CDBG-ED grant to Fiberstar, Inc. WEDC made a preliminary $100,000 loan commitment to Fiberstar, Inc. The company was organized in March 1998 and its business headquarters are located at 713 St. Croix Street, River Falls, WI. Fiberstar is a privately owned research and development company focusing on improving food freshness and nutrition through technological innovation. It operates a manufacturing facility in River Falls that produces its Citri-Fi@ and Imulsi-Fi lines of products. In order to produce certain product lines, Fiberstar currently sends the products to toll milling facilities to mill it to Fiberstar specifications. Fiberstar's milling demand has reached the point where its requirements are outreaching Fiberstar's toll milling facilities capabilities and it is now economically feasible to bring the milling process to its River Falls facility. The total cost of the milling line equipment and leasehold improvements is $768,000 with matching funds being used for the leasehold improvements.. The CDBG loan will assist in retaining the company's ten (10) existing employees and the company has committed to creating an additional eight (8) full-time positions within the next three (3) years. WEDC has asked St. Croix County to be the applicant for the CDBG grant of $106,000, which includes $6,000 for grant administration. The County will loan $100,000 of the grant funds to Fiberstar, Inc. The loan payments will capitalize the Regional Business Fund, Inc. consolidated revolving loan fund to be used for other area business. Loan Terms and Conditions approved by WEDC Loan Amount: $100,000 Interest Rate: 2% Term: The loan shall be amortized over Five (5) years with equal monthly payments of principal and interest. Security: A shared second (2" lien position on the milling equipment to be purchased with WEDC funds and a subordinate lien position on all other business assets. Jobs: Retain ten (10) existing full-time positions that the borrower has in River Falls, Wl through December 31, 2016. Create eight (8) new fall-time positions with an average wage of $16.00 per hour in River Falls, WI by December 31, 2014, and thereafter, maintain each of these new full-time positions until December 31, 2016. Action Requested Resolution to Submit CDBG Application - Authorizes the County Board Chair to sign the necessary documents to submit the application and authorizes the County Administrator to file the application. Approve a $6,000 contract with the West Central Wisconsin Regional Planning Commission for grant administration - The grant provides $6, 000 for grant administration.