HomeMy WebLinkAbout20100621 - V-A-1
MEMORANDUM
TO: Honorable Mayor and City Councilmembers
FROM: Dave Osberg, City Administrator
DATE: June 17, 2010
SUBJECT: Special City Council Workshop—Hudson Project
City Councilmembers will recall the special City Council workshop scheduled for 6:00
PM on Monday June 21, 2010 to discuss the Hudson acquisition project.
City Councilmembers will recall the study that was commissioned by the HEDRA to
consider the possible relocation of the Hudson facility to the vacant Intek facility located
on Progress Drive, adjacent to the Public Works Garage. As part of the Highway #61
Bridge project, a portion of the Hudson facility will be acquired, and there will be
significant activity in and around the site of Hudson, thus causing certain disruptions.
With the vacant Intek facility, combined with the bridge construction activity, the
opportunity to relocate the Hudson operations to the Intek facility has been a project Staff
has been working on the last several months.
In an effort to facilitate discussion, letter have been sent to Hudson in the last several
months, outlining the framework in which the City (HEDRA) would be willing to
consider acquisition of the Hudson facility, and thus allow for their relocation to the Intek
facility. Key elements of that framework included the following:
a.) Purchase price of $ 3.0 million.
b.) Waiving of certain fees
c.) Tax abatement at the Intek facility
In return for acquisition of the Hudson facility, and thus assisting with their opportunity
to relocate to the Intek facility, Hudson would agree to:
a.)Fully relocate their operations to Intek facility and complete the necessary
improvements
b.)Agree to remain in operations for a set period of time at certain employment
levels
c.)Maintain the facility in suitable manner during its lifetime at the Intek site.
d.)Disclose all known environmental hazards
A variety of meetings and discussion have taken place over the last several months,
culminating in the receipt of a purchase agreement from Hudson on Thursday June 10,
2010. While there is considerable work that needs to be done to finalize any purchase
agreement, which will likely result in the HEDRA becoming the entity that actually
acquires the facility, this is the first time the City Council has had a significant
opportunity to discuss the project and address any questions. Jessica Cook, from Ehlers
and Associates will be in attendance to share with the City Council, the general concepts
of how the financing would work to allow for the acquisition of the property.
Toward the conclusion of the meeting, it would the recommendation of Staff that the City
Council take the following action:
“Moved by__________________, Seconded by _________________ supporting
the project and directing HEDRA and Staff to continue meet and negotiate as necessary
with Hudson Manufacturing in effort to acquire the Hudson facility and thus allowing the
Hudson facility to relocate into the vacated Intek facility.”
David M. Osberg
cc.HEDRA Members
Jessica Cook, Ehlers
Wayne Beissel, Hudson
John Hinzman
Melanie Mesko Lee
Char Stark
Dan Fluegel