7.5. SR 07-20-2015 - Laserfiche WebLink

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Morrell Oversize plans on hiring a minimum of 8 FTE within the next two years, paying an average of $23.21 an hour, as a result of this expansion. Since 2003, the Morrell's have paid nearly $1M in property taxes. Their proposed expansion is estimated to generate $35,311 a year in property taxes, bringing their total tax contribution to over $125,000 annually. According to Sherburne County, the proposed Morrell Oversize expansion is eligible for a total of $17,037/yr in abatement between the city and the county: • City: $8,107/yr • County: $8,930/yr In addition to the increase in tax base, the sale a city owned property, and creation of jobs, the attached economic impact study indicates that this project will not only increase the overall sustainability of Morrell Companies, but the expansion of Morrell Oversize will: • Create five indirect and induced jobs throughout the local economy, which will pay $36,628 in average annual salary, or $17.61 per hour • Increase consumer expenditures by $316,019 annually • Bring a total of 13 direct and indirect jobs into the area • Bring 7 residents to Elk River • Bring 17 residents to Sherburne County Enclosed you will find a 3rd party economic impact study which outlines the specific economic impacts of this project to Elk River and Sherburne County. Subsidy Impact To ensure this project moves forward in the City of Elk River and Sherburne County, Morrell Oversize is asking for pay-as-you-go tax abatement assistance from both entities. Based upon the project information, Assistant County Administrator Dan Weber has provided the following annual tax estimate: • County = $8,930 • City = $8,107 School = $7,299 • State = $8,354 MV = $1,798 • Other= $823 Total = $35,311 Looking at the attached projections, to help ensure business sustainability and total project cost, Morrell Oversize is asking for a total of $210,905 in pay-as-you-go abatement; with $121,605 coming from the City of Elk River. This number is calculated based upon $8,107/yr for fifteen years.