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TAX INCREMENT FINANCING PLAN <br /> TAX INCREMENT FINANCING DISTRICT NO. 9 <br /> SUMMARY <br /> Tescom Corporation, Inc. , 12616 Industrial Boulevard, Elk <br /> River, Minnesota seeks $194,000 in Tax Increment Financing <br /> assistance to support its proposed 30,000 square foot expansion <br /> on a vacant site adjacent to its existing 34,000 square foot <br /> facility in the Elk River Industrial Park. At its Elk River <br /> facility, Tescom produces regulators, valves, and control <br /> devises. The current business grew out of applications in the <br /> 1960 ' s which were heavily dependent on aerospace. Sales have <br /> been greatly diversified since that time. This diversity <br /> currently includes the following industries: Semi Conductor, <br /> General Industrial, Specialty Gas, Instrumentation, <br /> Government/Aero Space, and Petroleum/Hydraulic. The Elk River <br /> facility currently employs 200 people, up from 54 when Tescom <br /> moved to Elk River in 1982 . The growth projections forecast <br /> employment at the end of 1994 to be 265 to 270 people. <br /> The Economic Development Authority for the City of Elk River, <br /> Minnesota is proposing the creation of an Economic Development <br /> District pursuant to the Tax Increment Financing Act. Tax <br /> Increment funds will be used to "write-down" the acquisition of <br /> • the development site. In addition, funds will be used to <br /> conduct borings and analysis of the property, site survey, and <br /> for civil and engineering costs. <br /> The 30,000 square foot facility will have a finished market <br /> value estimated at $900,000, which produces property taxes <br /> estimated at $43,300 . These funds will be "captured" by the <br /> City of Elk River so that the City can recover the $194,000 in <br /> Tax Increment assistance. After recapturing the project debt, <br /> Tax Increment Financing District No. 9 will be decertified, <br /> thereby enabling all local taxing jurisdictions (County, <br /> School, City, etc. ) to share in the project's property taxes . <br /> The Economic Development Authority for the City of Elk River, <br /> Minnesota anticipates that Tax Increment Financing District No. <br /> 9 will exist for six (6) to seven (7) years. <br /> • <br />