HomeMy WebLinkAboutCity Council Minutes 05-25-2004 SpecialAdopted Minutes
Special Council Meeting
May 25, 2004
Deputy Mayor Stein called a Special Meeting of the Plymouth City Council to order at 5:30 p.m.
in the Public Safety Training Room, 3400 Plymouth Boulevard, on May 25, 2004.
COUNCIL PRESENT: Councihnembers Hewitt, Slavik, Stein, Bildsoe, and Neset.
Councilmember Black arrived at 5:45 p.m. Mayor Johnson arrived at 6:20 p.m.
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STAFF PRESENT: City Manager Ahrens, Community Development Director Hurlburt,
Housing Program Manager Jim Barnes, Public Works Director Faulkner, and Deputy City Clerk
Hoffman.
Meet with AGA Medical Officials concerning plans for building at 9700 Schmidt Lake
Road
Community Development Director Hurlburt explained that AGA Medical is a medical device
manufacturer currently located in Golden Valley. The firm has recently purchased the former
Qwest space at 9700 Schmidt Lake Road in Plymouth and has asked to approach the City to
learn what assistance might be available for them to build an expansion for their facility. She
introduced AGA Chief Finance officer Ted Johnson, as well as Bob Strachota and Dave Austin
from the Shenehon Company, a business & real estate valuations firm that assisted AGA
Medical in the purchase of the Plymouth site.
Bob Strachota summarized the company's acquisition of the Plymouth site, and its interest in
expansion of the facility in order to consolidate its employees and operations. He explained that
the company is seeking abatement from the City, a property tax rebate, over a ten—year period of
time.
Ted Johnson presented a history of the company and reviewed its six product lines. He said the
company's major product is a device to repair heart defects without the need for open—heart
surgery. He added that the company is interested in bringing all its employees and development
to a single corporate campus in Plymouth.
In response to a question from Councilmember Bildsoe about the company's request for City
financial assistance, Ted Johnson responded that the company wishes to use its working capital
for operations, and the assistance the City would provide would go toward facility expansion
costs. Mr. Johnson said consolidating operations to one campus site would be a cost saving
endeavor, but the company would still need to divert funds to its operations.
In response to questions about traffic in and out of the facility, Mr. Johnson responded that its
product is shipped through various express package companies, so traffic would be compact
trucks, and employees. He said the company runs only one work shift.
Adopted Council Minutes
Special Meeting of May 25, 2004
Page 2 of 2
In response to questions about the request for a ten—year abatement plan, Bob Strachota
explained that in ten years the company could have exhausted all expansion options at the site,
and may need to move its manufacturing operations to a new facility. He said in this case, the
site would remain a setting for the corporate offices.
Council members asked about the request for abatement rather than seeking tax increment
financing. Community Development Director Hurlburt responded that an economic development
district would need to be established, and the process of qualification is more complicated and
expensive. She added that AGA Medical might qualify for tax increment finance funding.
Mayor Johnson noted that under a tax increment finance program, other government units such
as school districts and Hennepin County would be required to assist, relieving some of the
responsibility from the City.
Councihnember Black stated that she is uncomfortable talking about money at this time, but that
she would like to see staff work with company officials on some sort of proposal.
Councilmember Stein said he believed the company would be a benefit to the community, and
encouraged staff to work with them on ideas.
Mayor Johnson stated that she is glad to see the company's interest in expanding in Plymouth,
but that she is leery of proposals for this sort of assistance. She said that in her work with the
League of Minnesota Cities she has seen the experiences of other communities. She said she is
reluctant to set such a precedent that other businesses might want to follow.
Councihnember Slavik expressed an interest in looking at hard numbers for assistance and asked
what the company's options would be if City assistance did not come. Mr. Strachota responded
that the company could keep its facility active in Golden Valley.
Council members directed staff to pursue discussions with officials representing AGA Medical
that would explore both abatement and tax increment financing options for the company.
Discuss State law requirement that the City adopt a "business subsidy policy"
No discussion took place.)
Adiournment
Deputy Mayor Stein declared the meeting adjourned at 6:50 p.m
Kurt H. Hdffinan IIl, Deputy City Clerk