5.3. SR 03-08-2004 - Laserfiche WebLink

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Consider Approval of Gradient Technology Preliminary Proposal EDA Meeting February 9, 2004 Page 2 of 2 Staff has been in contact over the past one and a half years with Eric Haehn, Vice President/CFO of Gradient Technology. The company currently leases space in Blaine, MN and is seeking a suitable location within the northwest metro area to relocate. The City of Big Lake has aggressively pursued the company's relocation project, in addition to staff's efforts. Mr. Haehn proposes to construct a 13,000-square foot building, in which the company would occupy the entire space. Staff has proposed the following site and financial package for the project: · Location - A 1.5-acre parcel to be subdivided within the Elk River Business Park. The business park is owned by a partnership between Amcon Construction, Brookstone, Inc., and Fisher Land Development. · Write-down of 100% of land costs by way of a pay-as-you-go Tax Rebate Financing note that would then reimburse the company for land costs estimated at $105,197. As is often the case, this project is on a tight schedule and staff is doing its best to accommodate the timeframe where possible. Mr. Haehn is in the process of completing the necessary paperwork, including the TRF application and submitting site plans. Although the TRF application was not available for inclusion in this packet, it is staff's intention to provide a copy of the application and a rating sheet at the EDA meeting. Action Requested Staff recommends that the EDA consider recommending to the City Council approval of the Preliminary Proposal concept for the Gradient Technology project and direct staff to complete the due diligence process for the financial analysis and Tax Rebate Financing process. Per the City's TRF policy, any requests over the amount of $25,000 requires financial review and but-for analysis by the city's financial advisor, Ehlers & Associates.