9.0. EDSR 04-11-2005 - Laserfiche WebLink

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City of Elk River 2004 Annual Report • A $100,000 loan was provided to Badger Ventures, LLC (Gradient Technology) for the purchase of real estate necessary for operation. The company began construction of a new building in the Elk River Business Park in July. The loan is structured as a participation loan with The Bank of Elk River. The company committed to creating 5 new full-time jobs at no less than a $15.00/hour wage within 2 years. Gradient Technology Tax Abatement Project With the help of the City of Elk River, officials of Badger Ventures, LLC and Gradient Technology, Inc, formerly of Blaine, moved into a new 13.000sf facility in November. Gradient's primary business is demilitarizing munitions for the US Department of Defense. The Elk River facility will be used strictly for corporate headquarters, research and development and equipment fabrication. The actual "demilling" takes place at military bases and other locations. Gradient paid up front for the two-acre, $145,556 lot in the Elk River Business Park, but is being reimbursed through tax abatement equally from the City of Elk River and Sherburne County for a period up to 10-years. The city also provided a $100,000 Industrial Incentive Micro Loan. Gradient Technology employs 13 highly skilled employees, 7 of which are located in Minnesota. In addition to retaining the present workforce, Gradient will create a minimum of 5 full time positions at a minimum of$15.00 per hour (exclusive of benefits) within two years. Orluck Industries, Inc. Tax Abatement Project Following the economic ups and downs the past few years Orluck Industries remained a patient opportunity for the City of Elk River. The company, formerly of Dayton, is a manufacturer of high precision metal and plastic components serving industries in Minnesota and across the United States. The Elk River Economic Development Department crafted an aggressive package of financial assistance and city staff shepherded the project allowing for construction to begin in the fall of a $1.4 million, 23,000sf manufacturing facility. Orluck Industries will occupy about 15,000sf with its 15 full-time employees with jobs that pay $15.00-20.00 per hour. The remaining roughly 8,000sf will provide much needed lease space for new and growing businesses. The city had acquired the 2.79 acre lot, located at the southwest corner of Joplin Street and Business Center Drive from Sherburne County upon tax forfeiture in 2001. The city sold the $201,520 property upfront to Orluck, but is being reimbursed through tax abatement equally from the City of Elk River and Sherburne County for a period up to 12-years. Industrial/Business Park Development In November 2004 the City Council held a joint work session with the EDA to discuss its sites and development options. The sites under discussion were: ■ City-owned Cargill land-60 net acres, Light Industrial & Commercial • EDA-owned Brown land-45 net acres, Business Park The EDA and Council provided staff direction to proceed in developing a plan for Phase improvements and development of the sites listed above. The goal is to have lots available for • immediate industrial development and to put all industrial land in Elk River on a level playing field in price and financing assistance, allowing the prospect to select a site based on the site location and its amenities, rather than on price. Contingent upon the EDA and Council