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RESOLUTION REGARDING THE SUPPORT OF A JOB CREATION FUND APPLICATION IN CONNECTION WITH SOFIDEL AMERICA
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CITY PROPOSAL:
WHEREAS, the City of Duluth, Minnesota (the “City”), desires to assist Sofidel America Corp., a corporation, which is proposing to construct a facility in the City; and,
WHEREAS, the City of Duluth understands that Sofidel America, 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 Program; and,
WHEREAS, the City of Duluth held a City Council meeting on August, 26th 2024, to consider this matter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Duluth, Minnesota, that, after due consideration, the Mayor and City Council of the City of Duluth, Minnesota, hereby adopts the following findings of fact related to the project proposed by Sofidel America 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:
1. Finding that the 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 Minnesota, result in increased employment in Minnesota, and preserve or enhance the state and local tax base.
a) Sofidel America will expand to include a new converting facility and automated warehouse, encouraging the growth of the current industry, their, footprint, and operations within the City.
2. Finding that the proposed project, in the opinion of the City of Duluth, would not reasonably expected to occur solely through private within the reasonably foreseeable future.
a) The increase in market value of "the site" that would be reasonably be expected to occur without using subsidy. The development of the project meets the City of Duluth’s “but for” test for Tax Increment Financing, where without public subsidy the project costs would prohibit the expansion.
3. Finding that the proposed project conforms to the general plan for the development or redevelopment of the City as a whole.
a) The future use of the development conforms with the City’s 2035 Comprehensive Plan, and was approved for Tax Increment Financing as conforming at a Planning Commission Meeting on August 20th, 2024.
4. Finding that the proposed project will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment or development of the project by private enterprise.
a) This project will provide 160 new jobs to the community and increase the commercial tax base once completed.
Sworn and Executed Under My Hand this ___ day of ________________, 2024
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the City of Duluth’s support for Sofidel America’s expansion to add a converting facility and automatic warehouse to the Duluth Paper Mill site. This project will add 160 new jobs, bringing the plant up to similar employment levels as a former owner, Verso. The Duluth Paper Mill was originally founded in 1987 and closed in 2020. Sofidel purchased the building from ST Paper earlier this year and they will invest approximately $180M in this expansion.
This resolution authorizes staff to submit an application to the Minnesota Department of Employment and Economic Development for an award and/or rebate from the Job Creation Fund Program.