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<br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Economic Development Authority <br /> <br />~0 <br /> <br />FROM: <br /> <br />Heidi Steinmetz, Assistant Director of Economic Development <br /> <br />DATE: July II, 2005 <br /> <br />SUBJECT: Consider Tax Rebate Financing Assistance for Classic Acrylics, <br />Inc. <br /> <br />Attachment <br />. Site Location <br /> <br />Issue <br />Staff has been working with Classic Acrylics since the Fall of 2004 to identify a site and <br />financing assistance to relocate and expand the company's operations to Elk River. The <br />EDA is asked to review and consider recommending that the City Council call a public <br />hearing on the proposed Tax Rebate Financing (TRF) assistance request and business <br />subsidy to the company. <br /> <br />Project Description <br />Established in 1998, Classic Acrylics specializes in custom plastic fabrication for point-of- <br />purchase displays. The company is owned by three brothers, Stuart, Ron and Tom <br />Patterson. The company currently employs 13 full-time staff with an average hourly wage of <br />$15.00 per hour. Within two years of the expansion the company proposes to create five <br />new jobs with an hourly wage of $15.00 exclusive of benefits required by law. <br /> <br />The company currently leases 10,000 square feet in Dayton and is seeking a location within <br />the northwest metro area to relocate and expand in time for lease expiration. <br /> <br />Classic Acrylics proposes to construct a 20,000 square foot light industrial building on a <br />2.48-acre lot in Elk River Business Park, occupying 100% of the space. The lot <br />accommodates an additional 5,000 square feet for Classic Acrylics' desired future expansion. <br /> <br />Proposed Tax Rebate Financing Assistance <br />Staff has proposed financing assistance in the form of a pay-as-you-go Tax Rebate Financing <br />(TRF) note to the company in an amount up to 77% of the land cost at $150,000. The <br />amount of the assistance has been established based on providing a land cost write down of <br />