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City of Elk River Project <br /> 1. Please provide a brief description of the project.If it is part of a larger project or <br /> campaign,please briefly give an overview of the larger campaign as well. <br /> Sportech,Inc.is a locally-owned company originating in a family garage in 1994 that has grown into <br /> one of the city's largest employers.They are an innovation-driven plastics thermoformer specializing <br /> in the design,development,and production of products for the recreational and utility product <br /> industry. <br /> The company has experienced rapid growth over the past 18 years moving from the garage to a <br /> 10,000sf facility in 1998,adding a brand new 87,000sf facility in 2008,and added an additional <br /> 55,000sf facility in 2012. In 2014,Sportech added a state-of-the-art innovation center to their largest <br /> facility intended to enhance creativity and promote collaboration within their new product <br /> development group.Sportech was in need of a new 105,000sf facility to support growth and an <br /> additional 72 full time employees by the end of 2017.Sportech purchased a 14-acre site in the city- <br /> owned Natures Edge Business Park in 2015. <br /> The project utilized several sources of public financing for the purchase and development including <br /> the Minnesota Department of Employment and Economic Development,Sherburne County,the <br /> City of Elk River,and Anoka-Ramsey Community College. <br /> 2. What is the goal or purpose of this project? <br /> Sportech is an Original Equipment Manufacturer for snowmobile,utility vehicle,and recreational <br /> vehicle manufacturers. The market for products is very competitive and incredibly fast and their <br /> products and innovation are in high demand. <br /> As an Elk River native,Mr.Carlson was loyal to the city however his company's growth made <br /> Sportech a very attractive target for neighboring communities with similar goals to add tax base, <br /> high-paying,local jobs,and a company recognized as a good corporate citizen. <br /> Keeping Sportech in Elk River was an important goal as it was not only a prize local company,their <br /> growth and their market future,as demonstrated by their rapid growth and corporate innovation,are <br /> expected to continue to add jobs and to the community tax base. <br /> 3. What is the impact of the project?How effective has it been in furthering economic <br /> development in your community?Identify any tangible and/or intangible results and <br /> value added. <br /> The city utilized Property Tax Abatement to assist with the construction of the new facility.The <br /> $1,288,589 tax abatement was supported by the city and county which attracted$8,407,740 in private <br /> investment and added over$216,000 of taxable value. <br /> The Sportech project is also a driver for additional development projects in the area.The new facility <br /> is located near a new transit-oriented housing development and adjacent to the Northstar Commuter <br /> Train facility. Supply chain efficiencies are also anticipated resulting in the relocation of suppliers to <br /> Elk River to meet Sportech's raw material demands. Further,Carlson Motorsports is in the process <br /> of expanding ERX,their snowmobile,truck,and off-road vehicle course to include race team facility <br /> rentals and national events. <br /> 6 <br />