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Economic Development Authority Minutes July 11, 2005 Page 6 and Tom Patterson. Ms. Steinmetz indicated that the company currently employs 13 full- time staff and within two years of expansion the company proposes to create five new jobs with a minimum hourly wage of $15.00 exclusive of benefits required bylaw. She slated that Classic Acrylics is proposing to construct a 20,000sf light industrial building on a 2.48 acres lot in Elk River Business Park, occupying 100% of the space. She noted that the lot will also accommodate an additiona15,000sf future expansion. Ms. Steinmetz indicated that staff is proposing financing assistance in the form of spay-as- you-go Tax Rebate Financing (I'RF) note to the company in an amount up to $150,000 which is equal to approximately 77% of the land cost. The amount of assistance has been established based on providing a land cost write down of $30,000 per new job to be created at a minimum hourly wage of $15.00 exclusive of benefits required bylaw. Ms. Steinmetz noted that the amount Classic Acrylics is eligible for per new job created is at $30,000 rather than the $25,000 because staff began working with Classic Acrylics in November prior to decisions made on Northstaz Business Park. Ms. Steinmetz stated that staff is recommending that the TRF assistance be provided 50/50 by the city and Sherburne County with the company receiving 100% of the annual TRF for a maximum period of 10 years. The city's portion of the TRF assistance provided to the company would be $75,000. Ms. Steinmetz noted that Classic Acrylics has submitted the city's TRF application and fee and per the city's TRF policy, any requests over $25,000 requires financial review and but-for analysis by the city's financial advisor. President Gongoll welcomed Stuart Patterson, owner of Classic Acrylics and asked that he explain his company to the EDA. Stuart Patterson, owner Classic Acrylics -explained what his company produces and who his clients are. Mr. Patterson indicated that is has been great working with city staff and he looks forward to relocating his business to Elk River. Commissioner Tveite questioned what happens if the goals for new jobs to be created are not met. Director of Economic Development Catherine Mehelich explained that according to state law, the companies have two years to meet the job requirements and if they are not met, the City Council can chose to grant aone-year extension and if they are still not met the company's assistance would be suspended or repaid. MOVED BY COMMISSIONER FARBER AND SECONDED BY COMMISSIONER DWYER 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 CLASSIC ACRYLICS. MOTION CARRIED 7-0. 10. Consider EDA Commissioner Appointment to Energy City Commission Commissioner Klinzing indicated that she would like President Gongoll to serve on the Energy City Commission as the EDA representative as she believes he will represent the city well. President Gongoll suggested that President of the EDA be appointed to serve as the EDA representative on the Energy City Commission by title rather than byname. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER FARBER TO APPOINT THE PRESIDENT OF THE