04-12-2004 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes April 12, 2003 Page 3 Commissioner Motin stated that industrial and manufacturing are decreasing and asked if we should still be pursuing light industrial companies. Mr. Marht stated that manufacturing will see growth and that Elk River has access to Highways 94, 10 and 169, plus we'll see a growing workforce moving out of the Twin Cities into this area. Ms. Steinmetz stated that staff watches Deed's monthly Labor Force Data Update and analyzes this type of information. 6. Business Incubator Update Ms. Steinmetz reviewed the staff report. Consider Tax Rebate Financin Re uest for Bad er Ventures LLC Gradient Technology Incl Director of Economic Development Catherine Mehelich reported that at its March 8, 2004, meeting the EDA and later the City Council approved the Revised Preliminary Expansion Siting Proposal for Gradient Technology. She stated that Mr. Eric Haehn, Vice President/CFO of Gradient Technology, was present and is asking to be considered for receiving Tax Rebate (Abatement) Financing. Gradient Technology demilitarizes munitions for the military and is currently leasing space in Blaine. They have been looking for the past 18 months for a new location to expand their operation. They employ 13 full-time staff, with 7 based in Minnesota, paying ahigh-end hourly wage. They anticipate creating up to 5 new positions at the Minnesota facility within two-years. Badger Ventures, LLC proposes to construct a 13,000 square foot light industrial/business park building for leasing to Gradient Technology. At this time they proposes to purchase 2.05 acres within the Elk River Business Park and has requested both the city and county participation in writing down the land cost to $0 through apay-as-you-go, tax abatement note to the limited liability company. Sherburne County Assessor's office has provided an estimated market value of the proposed building project at $717,000. The MN Tax Abatement Statute allows jurisdictions to provide tax abatement over a 10-year period, unless other exceptions are met. Ms. Mehelich reported that the following issues remain unresolved at this time: Identification of a bank lender and proposed project financing terms The possibility of a City Micro Loan request of up to $100,000 Identification of the amount and source of eligible equity Completion and review of a but for analysis. Staff does not have a recommendation at this time for the EDA. She stated that there would be a 30-day period before the issues could be resolved.