ORONOCO — The Oronoco City Council took several steps to bring a new business to the city, Tuesday night.
By unanimous votes — with abstentions by councilman Skyler Breitenstein, who said he had a connection to the new company coming to town — the council approved a new Tax Increment Financing district and adopted rules for business subsidies in order to pave the way for a new data center by C.H. Robinson, an Eden Prairie-based company.
The project — a 32,000-square-foot facility that will provide a minimum of five jobs with an annual salary and benefits package of at least $100,000 to Oronoco — will break ground in November, said Mayor Kevin McDermott.
"It's definitely added growth to our tax base," McDermott said. "Our community is primarily residential. So it would be a nice commercial tax base addition."
McDermott said officials from C.H. Robinson have said the data center will be done by the end of 2016. The facility likely will bring seven to 10 jobs to Oronoco.
The city also wanted to ensure that its costs — setting up the TIF, hiring a bond attorney and paying for engineers and other attorneys on the project — would be covered by C.H. Robinson. Meanwhile the $752,000 TIF would help fund the project by collecting incremental taxes through the next nine years.
The project would be located at Third Avenue Southwest and 100th Street in Oronoco.
In other business, the city will offer space at the Oronoco Community Center for office space for Gold Rush, the citywide antique show. Since the event currently is run out of the organizer's home, the city will charge a nominal $100 per year in rent. Breitenstein said the organization and Gold Rush event benefit the city to the tune of $25,000 per year or more.