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Consider Tax Rebate Financing Assistance for Quality Label,Inc. <br /> November 14,2005 EDA Meeting <br /> Page 2 of 2 <br /> Proposed Tax Rebate Financing Assistance <br /> • Quality Label has requested Tax Rebate Financing assistance from the City in the amount of <br /> $133,947. A matching amount is being requested from Sherburne County as well. In total <br /> the $267,894 requested financing assistance accounts for 75% of the land cost and is equal to <br /> $17,860 of assistance per new job to be created. <br /> Quality Label has submitted a complete application to the City for Tax Rebate Financing. <br /> Staff has evaluated the application based on the City's TRF Proposal Review Worksheet, <br /> which indicates that the project scored 36 out of 45 possible points,which equates to a <br /> "moderately desirable" project. In addition Ehlers and Associates has reviewed the but-for <br /> analysis for the project and recommends that while the return is not what the developer <br /> requested,it is sufficient to provide but-for motivation for the company to move forward <br /> with the project. <br /> Requested Action <br /> Staff requests that the EDA recommend to the City Council approval of providing Tax <br /> Rebate Financing assistance to Quality Label, Inc. in the form of a pay-as-you-go Tax Rebate <br /> Financing (TRF) note in the amount of$133,947 with the company receiving 100% of the <br /> annual TRF for a maximum period of up to 10 years. A requirement of the financing <br /> assistance will include a commitment from the company for the creation of 15 new full-time <br /> positions at a minimum hourly wage, exclusive of benefits required by law, of$15.00 within <br /> two years. <br /> • A City Council public hearing has been scheduled for November 21, 2005 to consider <br /> providing Tax Rebate Financing and business subsidy to the Quality Label project. <br /> • <br />