Chaska council authorizes letter of intent for tax abatement to support Beckman Coulter expansion

The City of Chaska council on May 5 authorized the City Administrator to sign a letter of intent for a tax-abatement package to support Beckman Coulter’s planned expansion in Chaska.

Julie Grove, the city’s economic development director, told council the project is a roughly $50,000,000 expansion that would add about 48,000 square feet and up to 300 employees over the next two to three years. Grove said Beckman Coulter has been awarded grants from the Minnesota Department of Employment and Economic Development (DEED), including applications to the Minnesota Investment Fund (MIF) and the Job Creation Fund (JCF), and that the company requested city tax-abatement assistance to help fund the expansion and related public-infrastructure improvements.

Grove summarized the high-level terms of the draft letter of intent attached to the council packet: a pay-as-you-go tax abatement capped at approximately $1,390,000, not to exceed 12 years. She said a portion of abatement funds would be used to resurface Lake Hazeltine Drive no later than 2028; Grove added that the road is not currently scheduled for resurfacing within the next five years and that the resurfacing would benefit other industrial-park businesses.

"Staff believes that this project will achieve many of those same goals" the city uses tax abatement for — attracting and retaining businesses, job creation, redevelopment and funding public infrastructure — Grove said, recommending that council authorize the City Administrator to sign the letter of intent and direct staff to negotiate a tax-abatement agreement to return to council for final approval.

Representatives of Beckman Coulter experienced technical difficulties and did not speak in person, but Grove said they were comfortable with the letter of intent and the key terms.

Councilmember Shevlin moved to authorize the City Administrator to sign the letter of intent; Councilmember Benesch seconded. The council voted in favor and the motion carried.

Grove said the formal tax-abatement agreement will return to the council alongside final planning approvals. Council members praised staff for including roadway improvements as part of the assistance package and noted the city’s practice of applying consistent assistance terms across businesses.

Ending: The council’s LOI authorization advances negotiations; staff will return with a tax-abatement agreement and final project approvals for council consideration.