6.0. EDSR 08-19-2002 - Laserfiche WebLink

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Consider Cymbet Corp.Expansion Siting Proposal August 19,2002 Page e 0‘3 • In year 2000 the company occupied approximately 1,500 square feet of Incubator space. In 2001 the company moved into 7,500 square feet of market rate space in the West Business Park. The company has expanded to date into approximately 14,000 square feet of corporate headquarters and research& development space. The company is prepared to begin production in Fall 2002 at a smaller scale in its present facility. Cymbet has indicated to staff a need for up to 50,000 square feet (expandable to 100,000 square feet) of lease space by July 2003 for its full-scale light manufacturing operation. In addition the company will retain its present facilities for corporate offices and research& development. River's Crossing and Equity Management (Linda Norha,President) have indicated interest in constructing and leasing the necessary facility to Cymbet. River's Crossing is currently negotiating a purchase of the approximately 17-acre Gagne property located directly west of SoftPac on Business Center Drive. The property would then be subdivided with 7-acres for Cymbet and the balance for smaller light industrial lots. Equity Management has indicated interest in constructing an additional 10,000 square feet to the Cymbet project in order to provide space for tenants of the City of Elk River Business Incubator Program. Expansion Siting Proposal In response to Cymbet and Equity Management's siting requirements, staff proposed the following described preliminary proposal to Cymbet and Equity Management for consideration. The proposal timeframe is contingent on the EDA's approval of the finance concept and the property being secured by River's Crossing and Equity Management. • Proposed Project • Construction of a 60,000 square foot light manufacturing facility which meets the requirements of the Business Park District; o 50,000 square feet leased to Cymbet Corporation, and o 10,000 square feet reserved for tenants of the city's Business Incubator Program. Public Purpose • Enhance and diversify the city's industrial base • Quality job creation • Development of the West Business Park in accordance with the city's Strategic Economic Development Plan • Spur private investment and development in the West Business Park Tax Base • $2,800,000 Estimated Land&Building Market Value Jobs/Wages • Cymbet currently employs 16 full-time people. The company anticipates hiring up to 26 additional employees within 24 months of completion of the facility. The new positions include several skilled Process and Production Technicians with an average wage of$20/hour plus benefits. • • Jobs created by Business Incubator tenants. S:\Industrial Siting\CYMBET expansion\Aug19EDA.doc