6.0. EDSR 03-10-2003 - Laserfiche WebLink

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Item 1 4 . 6 . 6L, City of (J Elk River MEMORANDUM TO: Mayor & City Council CC: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development ' DATE: February 18, 2003 SUBJECT: Consider MN Investment Fund Grant Application for Sportech, Inc. Expansion Attachments • MN Investment Fund, Fact Sheet • • Article: "Sportech Inc., Rank 14", The Business Journal Growth 50. Oct. 18, 2002. Background Local manufacturer, Sportech, Inc., designs, produces and markets snowmobile and ATV accessories. The company's operation is located in the southeast corner of Elk River on Jarvis Street. The attached recent article provides additional information about Sportech, Inc.'s history and success. The company was founded in 1993. Sportech, Inc. has made several expansions over a series of recent years in Elk River. The first expansion was from the founder's garage to a 10,000-square foot industrial building in 1998. The second expansion took place in the year 2000 with the addition of another 10,000-square feet. Currently, Sportech, Inc.wishes to expand with an additional 20,000-square foot freestanding building to be located adjacent to its present facility. Issue Sportech's expansion project includes the construction of a 20,000-square foot light industrial facility to house a screen-printing operation, and the purchase of equipment necessary for the screen-printing operation. The project includes the following elements for financing: Building Construction $ 750,000 Equipment + 250.000 TOTAL PROJECT $ 1,000,000 Sportech, Inc. currently employs 27 full-time, in addition to approximately 16 temporary employees. The company anticipates hiring, within 2-years of the project, up to 15 new full- time employees at a wage of not less than $12.00/hour plus benefits.