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•, TAX INCREMENT FINANCING PLAN <br /> TAX INCREMENT FINANCING DISTRICT NO. 12 <br /> SUMMARY <br /> Neos, Inc., 12797 Meadowvale Road, Suite B, Elk River, Minnesota seeks <br /> $80,000 in Tax Increment Financing assistance to support its proposed <br /> construction of a 16,000 square foot facility in the McChesney Industrial <br /> Park. Neos designs and builds machinery - specializing in packaging <br /> machinery. It currently occupies leased space at 12797 Meadowvale Road, <br /> Elk River, Minnesota. Neos currently employs five persons at this facility. <br /> As a result of the expansion, approximately six new full-time jobs will be <br /> created by Neos, Inc. In addition, the business incubator component of this <br /> facility is expected to create ten full-time jobs and retain another eleven <br /> positions. <br /> The Economic Development Authority for the City of Elk River, Minnesota is <br /> proposing the creation of an Economic Development District pursuant to the <br /> Tax Increment Financing Act. Tax increment funds will be used to "write- <br /> down" the acquisition price of the development site. Additional tax <br /> increment funds will be used for site preparation and site development costs. <br /> • The site, Lots 6 and 7, Block 1, McChesney Industrial Park, is currently <br /> owned by Jerry and Joanne McChesney. The Economic Development <br /> Authority for the City of Elk River proposes to acquire Lots 6 and 7 on behalf <br /> of Neos, Inc. Subject to the terms and conditions of a Contract for Private <br /> Development, Lots 6 and 7 will be conveyed to Neos, Inc. <br /> The 16,000 square foot facility will have a finished market value estimated at <br /> $585,000 which produces new property taxes of approximately $24,000 per <br /> year. These funds will be "captured" by the Economic Development <br /> Authority so that the City of Elk River can recover the $80,000 in tax <br /> increment assistance. After these funds have been repaid, Tax Increment <br /> Financing District No. 12 will be decertified, thereby enabling all local taxing <br /> jurisdictions (county, school, city, etc.) to share in the project's property taxes. <br /> The Economic Development Authority for the City of Elk River, Minnesota <br /> anticipates that Tax Increment Financing District No. 12 will exist for <br /> approximately six (6) years; during which time tax increment funds will be <br /> collected for four (4) years. <br /> • <br />