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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 9.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session August 17, 2020 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Shoot Steel Request for Tax Increment Cal Portner, City Administrator <br />Financing <br />Reviewed by <br /> <br /> <br />Action Requested <br />For discussion purposes only. <br /> <br />Background/Discussion <br />Shoot Steel, Inc. manufactures AR500 and AR550 steel targets, target stands, and other valuable range equipment. <br />They are currently operating out of their Ramsey, MN facility. <br /> <br />The EDA has received a purchase agreement for 17565 Tyler Street, NW from Shoot Steel who indicated their desire <br />for EDA incentives. They propose to purchase a 4.34-acre lot for the market rate of $2.00 per square foot, $378,100. <br />The purchase is contingent on the EDA holding a public hearing on September 21, 2020, and making the requisite <br />findings required by Minnesota Statutes Section 469.105, subdivision 2 that the sale and conveyance of the property <br />are in the best interests of the city and the transaction furthers the EDA’s general plan of economic development. <br /> <br />They propose to relocate 7 FT and 1 PT employees from their Ramsey location and hire 6-7FT employees over the <br />next two years. The positions will pay a minimum of $18 per hour depending on skill level. <br /> <br />Shoot Steel is requesting up to $400,000 in financial assistance from the city in the form of Tax Increment Financing <br />to construct their new facility. The maximum term for an Economic Development TIF district is nine years. The <br />applicant must meet the public purpose objectives and policy statements to qualify. Although not statutorily required, <br />each project is required to meet the “but-for” test to determine the need for and level of assistance. <br /> <br />Staff is seeking direction from Council on their interest to entertain a TIF application from Shoot Steel, Inc. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />The City of Elk River shall utilize TIF to encourage desirable development or redevelopment that would not <br />otherwise occur but for TIF. <br /> <br />Attachments <br /> Shoot Steel Summary <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />