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Ells -Wft <br /> _ Request for Action <br /> River <br /> To Item Number <br /> Economic Development uthority 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 4`''microloan program. The <br /> microloan program has not been approved DEED, though that is expected at any time. The County has <br /> also received a tax abatement application; they will consider that application on October 14`'',with formal <br /> review anticipated for October 28`' <br /> Coin-tainer is a coin wrapper and raffle ticket printer with a 65% market share nationally. Coin-tainer'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-twiner 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 /> PawIR10 0 <br /> 1 CIA R <br />