07-11-2005 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes July 11, 2005 Page 4 Ms. Mehelich indicated that CDI is proposing to construct a 30,000sf light industrial building on a 3.7 acre lot in the Northstar Business Park in which they would occupy 100% of the space. She noted that the 3.7 acre lot would also accommodate an additional 12,000sf for CDI's fixture expansion. Ms. Mehelich stated that the property is proposed to be sold for the purchase price of $2.00 per square foot with exception of the property that is encumbered by the Northern Natural Gas line easement. Ms. Mehelich explained that staff is proposing financing assistance in the form of apay-as- you-go TRF note to CDI in an amount up to 100% of the land cost at $276,940. 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 CDI 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 to be provided to the company in the amount of $138,470. Ms. Mehelich indicated that CDI 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- for analysis by the city's financial advisor. President Gongoll introduced Pat O'Brien and his wife Bobbi Jo and asked them to explain their company. Pat O'Brien, owner Crystal Distribution, Inc. -explained the product that his company produces. Mr. O'Brien indicated that CDI is growing very quickly and they need room to expand for their cturent employees. He stated that the timeline is their maim concern as they must meet the deadlines before their lease expires in order to make this work. MOVED BY COMMISSIONER FARBER AND SECONDED BY COMMISSIONER TVEITE 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 CRYSTAL DISTRIBUTION, INC. MOTION CARRIED 7-0. MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER FARBER TO CALL A PUBLIC HEARING OF THE EDA FOR MONDAY, AUGUST 8 AT 5:30 P.M. REGARDING THE SALE OF APPROXIMATELY 3.7 ACRES OF EDA PROPERTY IN THE NORTHSTAR BUSINESS PARK TO CRYSTAL DISTRIBUTION, INC. MOTION CARRIED 7- 0. 8. Consider Tax Rebate Financing Assistance for Alliance Machine Inc Director of Economic Development Catherine Mehelich indicated that Alliance Machine, Inc. 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 Alliance Machine, Inc. conducts light, precision machining of plastic and metal components for national and international clients in the aerospace, medical,