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HomeMy WebLinkAbout6.i. Bioscience Zone ApplicationAGENDA ITEM: Bioscience Zone Application AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director II AGENDA NO. •i. VJ ATTACHMENTS: Resolution, Bioscience Zones Map APPROVED BY: RECOMMENDED ACTION: Approve Bioscience Zone Resolution and Concur with Recommended Properties for Inclusion in Bioscience Application 4 ROSE MOUNT CITY COUNCIL City Council Regular Meeting September 19, 2006 State sales and use tax exemptions Corporate Franchise Tax exemptions Minimum fee unposed on corporations Refundable jobs credits Refundable research and development credits EXECUTIVE SUMMARY BACKGROUND The Department of Employment and Economic Development has stated they will be accepting apphcations for the Biotechnology and Health Science Industry Zone (Bioscience Zone). The Program is similar to the Job -Z program which provides some financial incentives to businesses who qualify for under the program conditions. The purpose of the Program is to keep and enhance job growth, increase future tax base, and expand economic development. DISCUSSION Communities in Dakota County and Goodhue County have met to discuss producing a joint application Dakota Futures has been coordinating wntmg of the application. Rosemount will be the official apphcant Each interested community has been requested to provide specific parcels they would like to include m the Zone Attached is a map of the proposed properties within the City of Rosemount. The map illustrates a total of 1211 acres. The total allowed m the application is 5000 acres, At this time I would like to propose all the properties illustrated and see how much land other communities are requesting Our request may be whittled down extensively depending upon interest from others. After designation of the Zone, there is a process to move properties into or out of the Zone. The tax benefits available for qualifying businesses who locate in the zone include: Additionally, there could be local sales and use tax exemptions. At this time Rosemount does not have a local sales or use tax and therefore this option is not apphcable. While the State is initiating this apphcanon process, there is currently no funding for the program. However, they will be again going to the Legislature in 2007 to request additional funding for the Program. In the past, the Program received a lump sum, and it was distributed on a first come first serve basis. Minneapolis, St. Paul, and Rochester currently have Bioscience Zone designations over particular lands This application process is competitive and it is rumored that other communities are also going to apply. All community members of our application must also pass a resolution of support for the apphcation and Zone designation Enclosed is a draft resolution for City Council support. The same item was also be placed on the Port Authority agenda The County Board is scheduled to take action on their resolution on October 3, 2006. All the properties from the commumnes must be submitted prior to that time. RECOMMENDATION Staff recommends the City Council approve the attached resolution in support of Bioscience Zone application and use of tax benefits for designated properties. Additionally staff would hke concurrence with the map provided illustrating properties to be included m the Bioscience Zone within the City of Rosemount. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2006- A RESOLUTION APPROVING SPECIFIC AREAS PROPOSED IN THE APPLICATION FOR A BIOSCIENCE ZONE AND USE OF TAX EXEMPTIONS AND TAX CREDITS WITHIN THE PROPOSED ZONE WHEREAS The Minnesota Legislature found m Minnesota Session Laws 2003, lsC Special Session, Chapter 21, Article 2, as a matter of public policy, that biotechnology and the health sciences hold immense promise in improving the quality of our lives, including curing diseases, making our foods safer and more abundant, reducing our dependence on fossil fuels and foreign oil, making better use of Minnesota agriculture products, and growing tens of thousands of new, high -paying jobs. WHEREAS The Minnesota Legislature 'Minnesota Session Laws 2006 Regular Session Chapter 276 (S.F No 3260) granted to the Minnesota Department of Employment and Economic Development the authority, in collaboration with the Minnesota Department of Revenue and the Office of Strategic and Long Range Planning, to designate one or more Biotechnology and Health Sciences Industry Zones. WHEREAS the legislature further found that there ate hundreds of discovenes made each year at the University of Minnesota, the Mayo Clinic, and other research institutions that, if properly commercialized, could help provide these benefits. WHEREAS the Bioscience Program created in Minnesota Session Laws 2003, 1st Special Session, Chapter 21, Article 2 allows for the formation of a Bioscience Zone; WHEREAS an apphcation for Bioscience zone designation in Rosemount, Minnesota, is being prepared for submission to the Mumesota Department of Employment and Economic Development via the Dakota County CDA, therefore, BE IT RESOLVED that the City Council of the City of Rosemount, at its meeting held on September 19, 2006, upon careful consideration and review, approves the specific areas proposed in the application for a Bioscience zone, approves of the use of tax exemptions and tax credits within the proposed zone (subject to proper review and approval by the other appropnite taxing authonttes withm the zones), and encourages the Minnesota Department of Employment and Economic Development to approve the Bioscience Zone Apphcatton being submitted by the City of Rosemount as applicant with the Dakota County CDA as zone administrator BE IT FURTHER RESOLVED that the City of Rosemount agrees to provide all of the local sales and use tax exemptions provided for under the Bioscience Zone. ADOPTED this 19th day of September, 2006 by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk RESOLUTION 2006 Motion by: Second by: Voted in favor: Voted against: Member absent: 2 Science Zox 4 ROSEMOUNT SPIRIT OF PRIDE AND PROGRESS r T ARn ""177 7mr s ®2010 MUSA Line Agricultural ■Public/Infra: 1 E2020 MUSA Line Rural Residential Parks /Open •Proposed MUSA Line Urban Residential Business P. ❑Public ROW Transitional Residential Corporate C Private ROW tMedium Density Residential L Commercia ■High Density Residential Industrial/M 0 io¢n sru cry September 2006