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Wyoming Council OK’s Xccent deal |
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Thursday, 08 May 2008 |
Alice Pickering
Wyoming Reporter
Wyoming City Council gave its stamp of approval to Xccent, L.L.C and Xccent, Inc. by approving the development agreement between the company and the city on Tuesday, April 29. The company move to Wyoming should be a boost to local jobs, in the short term for construction, and in the long run for a growing company, leaders said.
Chris Eng, Chisago County HRA-EDA director, referred to his memorandum to the council about anticipated impact on the county and city. Sometimes referred to as the ripple-effect of locating a new business in an area, it is the result of the increase in employment and the stimulus to other businesses in the area. “This looks like a good deal for both the county and the city of Wyoming,” he said.
The construction phase of the project will create 59 jobs, with about $2.1 million in compensation. During the construction phase he estimates $5.7 million in output and value-added $3.2 million.
In the operations phase, output in year 1 is estimated at $15.5 million, Value-added $6.7 million, the creation of 70 direct jobs, an additional 25 positions in other businesses, and total wages/salaries of $4 million. The second year, output is estimated at $32 million, with creation of an additional 75 direct jobs, Value-added $13.9 million, employment for 47 others in the county, and total wages/salaries of $8.3 million.
Eng said Xccent will make a “significant impact in the county.” Further, Chisago County “looks forward to the company working here.”
The county is pleased that the company wants to locate in Wyoming and believes Xccent will make a “significant impact in the county,” Eng said.
Details
Information came from an Impact Analysis for Planning. This model takes the proposed level of output or employment for new economic activity in a particular industry and measures total impact on total local output, value-added, employment, and compensation paid to employees. The information was presented as the impact on Chisago County. Analysis and evaluation was prepared by Minnesota Department of Employment and Economic Development.
John and Patricia Mathiesen are owners of Xccent. Mathiesen summarized the history of the company and reasons it is seeking to locate to Wyoming.
The firm started in 1976 and is a supplier to commercial playgrounds; commercial and residential exterior decking; manufacturer of coatings (synthetic and rubber; and finally Xccent Play, a company of play assemblies, according to Mathiesen.
The plant is now based in Osceola, WI. The Mathiesens have been looking for a place to locate and expanded. They first checked out Wyoming location in early 2006 for land. One main reason for locating here is a need for workers.
Mathiesen expressed enthusiasm for locating in Wyoming. He told the council that Xccent will create good jobs, good wages, and that the company is seeking talent. Jobs will be blue collar and white collar jobs. He is enthusiastic about what he calls the talent pool in the area. The company will be seeking employees from the area.
Already there are five of the play assemblies at Wyoming Elementary School. Mathiesen said he is asked by students if he is the “playground guy.” Workers observe the students at play on the equipment to learn more about how to make adaptations.
Attorney Dave Snyder came with the prepared development agreement and urged approval at the meeting.
Among questions about the JOBZ, Council Member Gary Menne, asked how success of the company is to be measured. While state law requires an annual report of progress, Mathiesen plans to be proactive in reporting to the city semiannually. Rules are the same for all companies, new and established.
Mayor Sheldon Anderson believes the process it transparent. Council Member Blake Tiedeman believes the data privacy act maintains privacy, yet allows transparency of the process.
The re-zone of the area, planned improvements of a new or extended 257th Street and associated utilities, are tied to the location of Xccent in the city.
Councilman Gary Menne did not believe JOBZ has a good record. His was the single vote against the development agreement 4-1.
A public hearing preceded the special meeting, but there were no public comments.
Tax issue
City Administrator Craig Mattson is urging the council to hire a part-time bookkeeper/ accountant to complete claims and payroll.
A recent Minnesota Department of Revenue audit claims unpaid/underpayment of state sales tax and wants to tack on penalties. Much of the sales tax has been documented because of department record and on some items no sales tax should be paid according to information reviewed. There have been some mistakes in reporting because of improper coding which needs to be remedied, according to Mattson.
By contacting department heads, much of the information is available to prove payment of sales tax. Other items, according to Mattson, are not those for which sales tax should be paid.
All this is getting worked out and will likely become part of council meetings in the near future.
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