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Consider Tax Rebate Financing Assistance for Classic Acrylics,Inc. <br /> July 11,2005 EDA Meeting <br /> Page 2 of 2 <br /> $30,000 per new job created at a minimum hourly wage of$15.00 exclusive of benefits <br /> • required by law. Staff negotiated the financing assistance for this project based on assistance <br /> provided to Gradient Technology and Orluck Industries and prior to opening Northstar <br /> Business Park. <br /> Using the following formula the project is eligible to receive 77%write down on the land <br /> cost through a pay-as-you-go TRF note. <br /> Land Cost: 2.48 acres @ 1.80/sf $194,452 <br /> Eligible Assistance: $30,000 per 5 new jobs at$15/hr $150,000 <br /> Staff recommends that the TRF assistance be provided 50/50 by the City and Sherburne <br /> County with the company receiving 100% of the annual TRF for a maximum period of up <br /> to 10 years. <br /> Classic Acrylics has submitted the City's TRF application and fee. Per the City's TRF policy, <br /> any requests over the amount of$25,000 requires financial review and but-for analysis by the <br /> City's financial advisor, Ehlers &Associates. The review and recommendation will be <br /> completed prior to the Council calling a public hearing on the TRF request. <br /> Actions Requested <br /> Staff recommends the EDA consider the following actions for the Classic Acrylics project: <br /> • Direct staff to complete the due diligence for the TRF process <br /> • • Recommend that the City Council call a public hearing on the TRF assistance <br /> request and business subsidy <br /> • <br />