04-0537R

RESOLUTION AMENDING THE MINNESOTA INVESTMENT FUND (MIF) AGREEMENT WITH THE STATE OF MINNESOTA AND AMENDING THE MIF SUBAGREEMENT WITH NORTHSTAR MACHINE & TOOL, INC., D.B.A. NORTHSTAR AEROSPACE (NORTHSTAR) INCREASING THE TIME FOR JOB CREATION AND MAINTENANCE.

BY COUNCILOR GILBERT:

RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to the MIF agreement with the state of Minnesota increasing by one year the time within which the Northstar must create 30 jobs and maintain said jobs.

FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into an amendment substantially in the form of that on file in the office of the city clerk as Public Document No. to the MIF agreement with Northstar increasing by one year the time within which Northstar must create 30 jobs and maintain said jobs.


STATEMENT OF PURPOSE: The city applied to the Minnesota Department of Trade and Economic Development for a MIF Grant in order to provide Northstar funds to purchase new facility expansion equipment. The City received a grant in the amount of $150,000 and made a MIF loan of the same amount to Northstar. In exchange, Northstar agreed to create 30 new, full-time equivalents by June 30, 2004 and to maintain the jobs for two years after Northstar put the equipment into service. As of June 30, 2004, Northstar Aerospace has created 26 full-time equivalent jobs that pay an average hourly wage of $14.64, including benefits.

This resolution extends for a one year period, until June 30, 2005, the time within which said jobs must be created and also extends the maintenance of said jobs for an additional one-year period.