07-11-2005 EDA MIN - Laserfiche WebLink

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Economic Development AuthorityMinutes Jay 11, Zoos Page 3 Councilmember Motin questioned if the 15-year timeframe would be shortened if the taxes gained faster than expected. Councilmember Moon also questioned why the timeframe has been set at 15 years as he thought it was the city's policy to use 10 years. Ms. Steinmetz indicated that the 15 years is a conservative estimate and that staff chose 15 yeazs due to new state statutory policies in place with the TRF financing. Ms. Mehelich noted that State Starute allows 20 years and the purpose of the 15 years is to allow the EDA to recapture a portion of the annual abatement for costs not included in the sale price, rather than mcreasing the out of pocket sale price to the companies. Ms. Steinmetz indicated that MET has submitted the city~s TRF application and fee and per the city's policy, any requests over the amount of $25,000 require financial review and but- foranalysis by the city's financial advisor. President Gongoll welcomed Tom and Rikki Bauer, owners of MET and asked them to explain a little about their company. Tom Bauer, owner Medical Extrusion Technologies - explained the product that his company produces. Mr. Bauer also explained that the reason they would like to locate in Minnesota is to be closer to their clients in this azea. He stated that they would like to rent out the additional space to companies who compliment theirs but MET would eventually like to grow into it. MOVED BY COMMISSIONER FARBER AND SECONDED BY COMMISSIONER GUMPHREY TO DIRECT STAFF TO COMPLETE THE DUE DILLIGENCE FOR THE TAX REBATE FINANCING REVIEW PROCESS AND RECOMMEND THAT THE CITY COUNCIL CALL FOR A PUBLIC HEARING ON THE TAX REBATE FINANCING ASSISTANCE REQUEST AND BUSINESS SUBSIDY FOR MEDICAL EXTRUSION TECHNOLOGIES, INC. MOTION CARRIED 7-0. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER TVEITE TO CALL A PUBLIC HEARING OF THE EDA FOR MONDAY, AUGUST 8 AT 5:30 P.M. REGARDING THE SALE OF APPROXIMATELY 2.39 ACRES OF EDA PROPERTY IN THE NORTHSTAR BUSINESS PARK TO MEDICAL EXTRUSION TECHNOLOGIES, INC. MOTION CARRIED 7-0. Consider Tax Rebate Financing Assistance for Crystal Distribution Inc Director of Economic Development Catherine Mehelich indicated that Crystal Distribution, Inc. (CDI) is requesting Tax Rebate Financing ('IRF) assistance and sale of EDA property in order to relocate and expand the company's operations to Elk River. Ms. Mehelich stated that CDI fabricates sheet metal into custom curb adapters which are used to replace existing roof top equipment with new roof top equipment. She stated that the company currently employs 31 full-time employees and within two yeazs of expansion the company proposes to create 15 new jobs with a minunum hourly wage of $15.00. The company currently leases 22,OOOsf in Maple Grove and is seeking a suitable location within the northwest metro azea to relocate and expand in time for their cturent lease expiration in Mazch 2006.