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Elk Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority Finance Committee 4.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business October 13, 2014 Jeremy Barnhart, Deputy Director, CODD <br /> Item Description Reviewed by <br /> Stonesthrow Properties,LLC (Coin-tainer) Tax <br /> Abatement and Microloan review Reviewed by <br /> Action Requested <br /> Consider and provide recommendation to the EDA on the following Coin-tainer Co.,LLC and <br /> Stonesthrow Companies,LLC applications: <br /> Tax Abatement (Stonesthrow Companies,LLC) <br /> Industrial Development Micro Loan Fund Application (Coin-tainer Co.,LLC) <br /> Background/Discussion <br /> The City has received an application for tax abatement and the city's 4th microloan program. The <br /> microloan program has not been approved by DEED, though that is expected at any time. The County <br /> has also received a tax abatement application; they will consider that application on October 28th. <br /> Coin-Tainer is a coin wrapper and raffle ticket printer with a 65% market share nationally. Coin-tamer's <br /> operations, previously located in Milaca,were destroyed by fire in January 2014. They relocated to vacant <br /> space on Jarvis initially, and have found a long term home at 17834 Industrial Circle,with plans to <br /> purchase the property through a contract for deed, allowing for expansion as existing leases terminate. <br /> The tax abatement and microloan will allow Stonesthrow Properties,LLC to purchase the property and <br /> provide operating flexibility for Coin-tainer Co.,LLC (in common ownership with Stonesthrow <br /> Properties,LLC) to rebuild the business. <br /> Tax Abatement <br /> The attached memos from Springsted summarize the analysis completed to date. The project includes <br /> the retention of 26 existing jobs and the creation of 10 new jobs. The project scored 30, at the low end <br /> of the moderate desirability range. Mikaela Huot will be at the meeting on Monday to verbally support <br /> the analysis. <br /> Staff's review assumes abating taxes of the entire property for 12-15 years. The County policy allows for <br /> abatement for only the incremental change in value of the property, pre and post improvement. <br /> Based on our analysis,it appears that Coin-tainer would not remain within the city without the assistance. <br /> rellElif I a r ATURE <br />