07-09-2007 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes July 9, 2007 Page 2 Mr. Gongoll asked what the general timetable would be fox construction and completion of the project. Mr. Ertel stated that constmction would begin in spring of 2008 and completion in the fall of 2008. Mc Gongoll asked if there were any comments or questions fox Mr. Mowry and Mr. Ertel. Mr. Tveite asked what would happen to the existing building. Mr. Ertel stated that decision would be made by the Mowry's, but the plan would be to lease it out to another manufacturing company ox sell it. Mr. Tveite asked if there were any leads yet. Mx. Ertel stated there were no leads yet, but he stated it would be well-suited for another manufacturing company. Mr. Motin asked about the purchase price of the land for this project. Mr. Ertel stated that the actual purchase price of the land was $1.3 million, for 9.8 acres. Mr. Motin asked if the Tax Abatement period could be kept down to 8 yeazs, as this project is asking fox 12 years. Ms. Steinmetz responded that the Abatement amount being proposed is a "not to exceed" amount and the final Abatement amount should decrease the term to under 12 years. Mr. Clazk concurred, and felt a more realistic time period would be around 10 years. Mx. Gongoll complimented the business, stating the positives about this project. He mentioned that this piece of property which Metal Craft will be relocating to has been eyed for some time. The business has more than doubled since they started 30 years ago, and he's happy that they ace staying in the community. Mr. Gongoll gave kudos to the Mowry family, and especially Jack, fox staying in Elk River, and for providing additional employment opportunities to the area. Ms. Klinzing agreed with Mr. Gongoll's comments, and is also happy that Metal Craft decided to stay in town to expand their business. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER ZERWAS TO APPROVE THE TAX ABATEMENT ASSISTANCE FOR METAL CRAFT' MACHINE & ENGINEERING EXPANSION PROJECT. MOTION CARRIED (6-0). ti. ~lodate on Downtown Redevelopment Plan Taskforce Mr. Tveite began the dialogue on the release of the draft plan for the 400-acre redevelopment area, explaining the monthly discussions that have taken place in the past year by the 13-member Taskforce. He stated that the draft will be reviewed next week by the property owners (stakeholders). He stated that the draft is a starting point and the final result should encourage private investors to initiate new projects downtown. Because this is