07-11-2005 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Duty 11, Zoos Page 5 defense, and computer industries. She stated that the company currendy employs 30 full- time staff and within two years of expansion the company proposes to create nine new jobs with a minimum hourly wage of $15.00. The company currently leases 18,000sf in Maple Grove and is seeking a suitable location within the northwest metro to relocate and expand in time for lease expiration. Ms. Mehelich explained that Alliance Machine, Inc. is proposing to construct an 18,000sf light industrial building on a 2.84 acres lot in the Northstar Business Parkin which they would occupy 100% of the space. She noted that the 2.84-acre lot will also accommodate an additional 10,000sf future expansion. The property is proposed to be sold for the purchase price of $2.00 per square foot with the exception of the properly that is encumbered by the gas line easement. Ms. Mehelich indicated that staff is proposing financing assistance in the form as a pay-as- you-go TRF note to Alliance Machine, Inc. in an amount up to 100% of the land cost at $207,956. 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 Alliance Machine receiving 90% of the annual TRF and the EDA receiving 10% to reimburse itself for costs not included in the $2.OOsf sale price for a maximum of 15 years. The city's portion of the TRF assistance provided to the company would be $103,978. President Gongoll welcomed Bryan Provo, VP of Alliance Machine, Inc. and asked him to explain a little about their company. Bryan Provo, owner Alliance Machine, Inc. -explained that their company is busting at the seams. He indicated that many of their employees already live in the Elk River area and he believes locating their business in Elk River will also help them to gain and retain employees. MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KLINZING 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 ALLIANCE MACHINE, INC. MOTION CARRIED 7- 0. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER DWYER TO CALL A PUBLIC HEARING OF THE EDA FOA MONDAY, AUGUST 8 AT 5:30 P.M. REGARDING THE SALE OF APPROXIMATELY 2.84 ACRES OF EDA PROPERTY IN THE NORTHSTAR BUSINESS PARK TO ALLIANCE MACHINE, INC. MOTION CARRIED 7-0. 9. Consider Tax Rebate Financing Assistance for Classic Acrylics Inc Assistant Director of Economic Development Heidi Steinmetz indicated that Classic Acrylics has been working with staff since the fall of 2004 to identify a site and financing assistance to relocate and expand the company's current operations to Elk River. Ms. Steinmetz stated that Classic Acrylics specializes in custom plastic fabrication for point- of-purchase displays. She stated that the company is owned by three brothers, Stuart, Ron,