Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A COMMUNITY REINVESTMENT ACT AREA AGREEMENT WITH “PROJECT CRUNCH”; AND DECLARING AN EMERGENCY.
Brief Description: “Project Crunch” is currently looking to purchase 35 acres at Season’s Greene to build a 200,000 - 250,000 square foot centralized robotic warehousing storage and fulfillment center located at Patriot Parkway and Seasons Road.
Body
Legislative History
None.
Purpose & Explanation
To provide real property tax abatement of 50% over 10 years (timeframe suggested to EDIC by Jim) to support the construction of a facility at Patriot Parkway and Seasons Road. The entity has raised hiring and payroll projections to 400 new full-time employees with an annual payroll of $18 million over the next 3 years to occupy the space they construct. Their application requests a 15-year abatement period. The company would like to begin construction in the last quarter of 2021, which would allow for completion in the second quarter of 2023. The CRA program is an integral Economic Development tool for this unique project as the financial offsets to ongoing operating costs would allow increased Company investment in workforce recruitment and development, business growth, and the community. As multiple sites are considered for this project, this incentive incorporated into the internal site selection evaluations provides an advantage for the City of Hudson.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for two consecutive weeks
Joint or Cooperative Purchase Program
Professional Services
X Other
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes
X No
Recommendation
Suggested Action
Staff recommends that Hudson City Council authorize the City Manager to enter into the Community Reinvestment Act Area Agreement with Project Crunch.
Submitted by,
Jane Howington, City Manager
Jim Stifler, Economic Development Director