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�j <br /> 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 Aril 28, 2015 Amanda Othoudt, EDD <br /> Item Description Reviewed by <br /> GATR of Sauk Rapids, Inc. Tax Abatement review Jeremy Barnhart, Deputy Director, CODD <br /> Reviewed by <br /> Action Requested <br /> Consider and provide recommendation to the EDA on the following GATR of Sauk Rapids, Inc. tax <br /> abatement application. <br /> Background/Discussion <br /> The City has received an application for tax abatement for GATR of Sauk Rapids, Inc. The County has <br /> also received a tax abatement application;they have considered that application at their April 21s` County <br /> Board meeting with formal review and a public hearing anticipated for May 19d'. The EDA and City <br /> Council recently approved an amendment to the Business Subsidy policy, allowing business subsidies for <br /> service and retail commercial businesses. <br /> GATR is a full-service heavy duty and medium duty truck dealer with locations in Cedar Rapids and Des <br /> Moines, Iowa and Sauk Rapids, Minnesota which employ approximately 200 people. The proposal for <br /> this project site is to provide new and used truck sales, rental, leasing parts and service. GATR Truck <br /> Center would be a unique business in Elk River with no direct competitors within Sherburne County. <br /> GATR is proposing to build a facility in Elk River in order to better provide service to customers in the <br /> southeastern corner of their market area. Total sales generated from the property are expected to exceed <br /> $20 million by 2017 and $30 million by 2023. <br /> If approved, this would be the first project to break ground in Elk River's City Owned Nature's Edge <br /> Business Center 2nd Addition. The proposed project would consist of a 42,912 square foot facility with an <br /> estimated taxable value of approximately $3,900,000. The project is estimated to generate an approximate <br /> $160,500 in property taxes per year upon completion. The company has applied for a 15 years of tax <br /> abatement financing from the City of Elk River in the amount of$546,814. The tax abatement will allow <br /> GATR of Sauk Rapids, Inc. to purchase the property and provide operating flexibility. <br /> Tax Abatement <br /> The attached memo from Springsted summarizes the analysis completed to date. The project includes <br /> the creation of 63 new jobs. The project scored 43, at the higher end of the desirability range. Mikaela <br /> Huot will be at the meeting on Tuesday to verbally support the analysis. <br /> p0WIRED 0 <br /> NA UREJ <br />