5.3. SR 03-08-2004 - Laserfiche WebLink

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MEMORANDUM TO: FROM: DATE: SUBJECT: Economic Development Authority Mayor & City Council Catherine Mehelich, Director of Economic Development'~,.~//~'~ February 9, 2004 Consider Concept Approval of Gradient Technology Expansion Siting Proposal Attachments · Preliminary Expansion Siting Proposal for Gradient Technology, February 2, 2004. Issue The attached Preliminary Expansion Siting Proposal has been submitted by staff to Gradient Technology with regard to the company's proposed relocation project. Gradient Technology proposes to construct a 13,000-square foot light industrial/business park building for their office, research & development, and equipment fabrication operation. Staff has proposed that the company purchase a 1.5 acre lot within the Elk River Business Park and that the City consider a write down of the land cost to $0 through a pay-as-you-go note to the company. Staff anticipates that a representative from the Gradient Technology will be present for the EDA meeting to discuss the proposed project. Background Gradient Technology (G.D.O., Inc.) demih'tarizes munitions for various branches of the military. None of the demih'tafization is performed at the company's Minnesota facility, but rather at Crane Naval Service Warfare Center in Crane, Indiana. The Minnesota facility will be used for Gradient Technology's business office and for providing chemical engineering design services and equipment fabrication. The company will also have a lab for conducting research and development. The company currently employs 13 full-time staff, including 7 based in Minnesota and 6 in Indiana and elsewhere. The positions have an hourly wage between $16-75.00 per hour. The company projects to create 3 to 5 new positions at the Minnesota facility within 2-years. The new positions likely consist of management and engineers.