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Looking at past projects Elk River has granted abatement to, this is a comparable request. Since 2004,
<br />Elk River has granted abatement to twelve businesses, with terms ranging from 10-15 years.
<br />Businesses who received abatement for 15 years include:
<br />• Envision Company, LLC (Sportech). $460,000, total of $920,00 with County abatement
<br />• O'Brien Holdings (CDI), $138,470, total of $276,940 with County Abatement
<br />• Medical Extrusion Technologies, $114,998, total of $229,996 with County abatement
<br />• Provo Enterprises (Alliance Machine), $103,978, total of $207,956 with County abatement
<br />Business who received abatement for 10-12 years include:
<br />• United Healthcare, 10 years, $850,000
<br />• The Bank of Elk River, 12 years, $195,000, total of $495,000 with County abatement
<br />• Quality Label, 10 years, $133,947, total of $267,894 with County abatement
<br />• Orluck Industries, 12 years, $100,760, total of $201,520 with County abatement
<br />Morrell's longstanding presence in the Elk River community, existing jobs and average hourly rate far
<br />exceed past projects receiving abatement.
<br />The most recent tax incentive provided to an Elk River business was Preferred Powder Coating, who
<br />received approximately $1.15M up front, with a total project cost of over $6M, or 19% of the total
<br />project cost. Morrell's request is 8.9% of total project cost.
<br />Morrell Oversize is also applying for tax abatement from the Sherburne County, to help offset the cost
<br />of their $2.38M project, and ensure their long-term success. The attached projections demonstrate the
<br />need for the pay-as-you-go abatement over the course of 15 years.
<br />Initial scoring on the City's current tax abatement applications shows the project scoring a minimum of
<br />30 (moderate desirability), assuming worst case scenario for question 10. In the 50 years of operation,
<br />Morrell Companies has never applied for, nor received, any business subsidies to operate their business.
<br />How the Project Meets Public Purpose
<br />This project serves four of the public purposes as outlined in the City of Elk River Tax Abatement
<br />Application:
<br />Job Creation/Retention
<br />Upon completing their expansion, Morrell Companies anticipates hiring 8 FTE within two years,
<br />averaging $23.21/hr. Additional job creation is outlined above.
<br />Enhancement and/or diversification of the City of Elk River's Economic Base and Significantly increases
<br />the City's tax base
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