7.3. SR 07-20-2015 - Laserfiche WebLink

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Corporation/Partnership Description Both entities are S -Corps and 100% owned by Chris, Deb, Andrew and Taylor Carlson. • Envision, LLC (the real estate entity) • Sportech, Inc. (the business entity) Description of Project Sportech, Inc. is a family owned, innovation -driven plastics thermoformer specializing in the design, development and production of quality products and accessories for the recreational and utility product industry that began in 1994. The first product designed by current owner, CEO Chris Carlson's father, was the Indy Lightshield, which eliminates show from covering the headlights of snowmobiles. This product is recognized today as one of the most innovative and best-selling accessories ever introduced to the snowmobile market. Since then, Sportech has continued to evolve and grow, through their development of numerous ground -breaking aftermarket snowmobile products and significant company growth. As a supplier to OEMs, they design and manufacture windshields, body panels and screen printed parts for motorcycles, snowmobiles, scooters, ATVs, UTVs and more. Clients include Polaris, Honda and John Deere. Originally a home based business in the Carlson garage, the company moved to a 10,000 square foot facility in 1998, and built a brand new 96,000 sq. ft. facility (Building 1) in Elk River in 2008. In 2012, an additional 55,000 square foot facility (Building 2) was added in Elk River for warehouse and assembly productions. Because of Sportech's rapid growth, the company recently conducted a facility needs assessment to best prepare for future growth. This assessment identified 5-6 pieces of new equipment to go into service within the next two years, resulting in a minimum of 80,000 additional square feet (eliminating the current 55,000 square foot facility). Sportech has seen tremendous employee growth in the past several years as well: 17 new employees hired in 2010, 43 in 2011, 52 in 2012 and 82 in 2013 and 80 in 2014. Unfortunately, there has been turnover during this time. Sportech currently employs 204 FTE, and anticipates hiring a minimum of 72 FTE, averaging $19.67/hr within the next two years. This does not include any additional employees hired with the planned acquisition (as described below) in 2016. Sportech wants to purchase approximately 14 acres (two city -owned lots) in Elk River's Natures Edge Business Center and build a 105,000 square foot facility with room to expand an additional 73,500 square feet. The facility will be used to assemble cab systems and parts (primarily doors & windshields) for vehicle OEM's. Additionally, this facility will offer a highly efficient assembly operation, more advanced thermoforming, and a location where the in-depth manufacturing processes are executed start to finish: 1) raw materials in, 2) materials processed, 3) manufactured, 4) assembled, 5) packaged, and 6) shipped. Currently, this process is split between Sportech's two buildings. It's imperative Sportech is able to expand to manage its growth, and the company would like to break ground this year.