07-11-2005 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Juts 11, Zoos Page 2 concept has changed slightly in order to accommodate three business prospects. She noted that there is a gas line n,nning through the center of the property that had to be worked around. President Gongoll noted that the gas line easement is not totally restricted in its covering and that it cannot be built on but it can be used as a driveway or parking lot. Ms. Mehelich explained that last month staff informed the EDA of a grant for up to 50% of the capital cost of public infrastnrcnrre from the MN Department of Employment and Economic Development (DEED and the City Council adopted a resolution authorizing the application and certifying the availability of its 50% match. Ms. Mehelich indicated that the grant application was submitted June 22 requesting $495,000 and was based on the entire unprovement project. Ms. Mehelich noted that cities are eligible to receive bonus points in the grant scoring process if the amount requested is below $500,000. Ms. Mehelich stated that in addition to the three prospects wishing to build in the park this fall staff has also received inquiries from two different prospects wishing to build 100,000 - 150,000 square feet manufacturing or office facility on the 9.29 acre lot. Ms. Mehelich indicated that staff has been working with Tom Bray of Briggs and Morgan to prepare a purchase agreement form which outlines the general terms for the sale of the properly within the park as well as statutory requirements for the EDA's sale of the property. 6. Consider Tax Rebate Financing Assistance for Medical Extrusion Technologies Inc Assistant Director of Economic Development Heidi Steinmetz stated that Medical Extrusion Technologies, Inc. (MET) is requesting Tax Rebate Financing (II2F) assistance in order to expand the company's operations to Elk River. Ms. Steinmetz indicated that MET was established in 1990 and manufactures plastic rubing and profiles for medical, commercial, telecommunications, and recreational applications. She stated that the company currently owns a 20,000 square foot facility in Marietta, CA and is looking for a suitable location in Minnesota to expand and move closer to their clients in this area with a "sister" facility. Ms. Steinmetz explained that the company currently employs 30 full-time staff with an average hourly wage of $23.00 per hour and within two years of the expansion the company proposes to create 23 new jobs with a minimum hourly wage of $15.00. Ms. Steinmetz stated that MET proposes to construct a 20,000 square foot light industrial building on a 2.39 acre lot in the Northstar Business Park in which the company would occupy 50% of the space and lease out the balance of the space. A public hearing is required for the EDA to sell property. Ms. Steinmetz indicated that staff is proposing financing assistance in the form of a pay-as- you-go TRF note to MET in an amount up to 100% of the land cost at $208,217. The amount has been established based on providing a land cost write down of $25,000 per new job to be created at a minimum hourly wage of $15.00. She stated that staff recommends that the TRF assistance be provided 50/50 by the city and Sherburne County with the comparry receiving 90% of the annual TRF and the EDA receiving 10% of the annual TRF to reimburse itself for expenses not included in the sale price of $2.00/sf for a maximum of 15 years. The city's portion of the TRF provided to the company would be in the amount of $104,108.