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Mayor Porter called the meeting to order at 12:05 p.m.
Council Members Present: Mayor Porter; Councilpersons: Lubkeman, Woodley, Nohava, Harvey
Council Members Absent: Cauwels
Development Committee Members Present: Klemme, Jacobs, Lynott
Item 1. Discussion/Approval of Economic Incentives to offer to a potential industry recruit. Mr. Klemme reported that he, Mr. Coffey, Mayor Porter, and Mr. Jacobs had visited the potential recruit’s current facility the previous week and were very impressed with the business. The business is expanding rapidly and its customer base is spreading further into Nebraska. Hawarden is in an optimal geographic location to help the prospect better serve its customers in Nebraska, Sioux Falls, and Sioux City. The prospect is looking to relocate a division of its company due to difficulties encountered in its current city.
The company is looking to relocate fifteen positions initially and expand to up to twenty-five positions in two to three years. Mr. Klemme reported that approximately one-fourth to one-third of the positions that would move to Hawarden are paid $30,000 to $50,000 per year, well exceeding the current average compensation in Hawarden.
Mr. Coffey presented assistance packages for two different scenarios. If the prospect would be interested in moving into the existing former SECO buildings, they would be financed by the City through a forgivable loan over a ten year period. The City would also provide some relocation assistance to the company.
The second scenario would provide economic assistance to build a new building in the City’s south industrial park. In this scenario, the City would provide 4.6 acres of land, relocation expenses for the company, and 20% of the building expenses to construct the building.
Council discussion centered on financing the scenarios. Mr. Coffey said the funding would come from tax increment revenue created by taxes on the new business. Equipment for many of the electrical and sewer upgrades in the Industrial Park have already been budgeted for and would come from utility reserves.
Moved by Woodley/Lubkeman to approve the economic assistance package. Motion carried unanimously.
Moved by Lubkeman/Woodley to adjourn. The Council meeting adjourned at 12:45 p.m.
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Prc Porter, Mayor
ATTEST:
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Craig Coffey, City Administrator
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