DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: District 8
SUBJECT:
Amendment of a Chapter 380 Grant Agreement with MiniMed Distribution Corporation
SUMMARY:
Staff is recommending an amendment to the City's Economic Development Grant Agreement (the "Agreement") with MiniMed Distribution Corporation (MiniMed) which was approved by City Council on May 21, 2009.
The Agreement requires a $23 million property investment and the creation of 1,300 new full-time jobs for the disbursement of economic development grant funds in the cumulative amount of $2.33 million over a five year period, and the rebate of 100% of property taxes over a 10 year period. The total $2.33 million grant equates to $1,792 per job created and maintained for the 1,300 required jobs.
To date, the company has exceeded its capital investment requirement and has created and maintained more than 1,100 new full-time jobs. Prior to the next reporting cycle, MiniMed contacted City representatives to discuss options for amending the Agreement to reduce the required number of full-time jobs to 1,116, due to adjustments in the company's headcount projections. The original projections were done over 6 years ago, and the company is providing this updated guidance based on its current outlook inclusive of today's changing healthcare landscape. The reduction in the jobs creation and retention requirement will result in the City retaining the final grant payment of $330,000 to MiniMed.
BACKGROUND INFORMATION:
MiniMed is a subsidiary of Medtronic, Inc., a global leader in medical technology that was founded in 1949 and currently employs over 38,000 people worldwide. MiniMed is a world leader in integrated diabetes management systems, insulin pump therapy, continuous glucose monitoring systems and therapy management.
In 2009, under the terms and conditions of the Agreement, the City, as part of an economic development inc...
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