5.1. SR 11-21-2005 - Laserfiche WebLink

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Consider Tax Rebate Financing j\ssisran.ce for Quality Label, Inc. November 14, 2005 EDA Meeting Page 20f2 Proposed Tax Rebate Financing Assistance Qw.lity Label has requested Tax Rebate Financing assistance from the City in the amount of $133,947. A matching amount is being requested from Sherburne County as well. In total the $267,894 requested financing assistance accounts for 75% of the land cost and is equal to $17,860 of assistance per new job to be created. Quality Label has submitted a complete application to the City for Tax Rebate Financing. Staff has evaluated the application based on the City's TRF Proposal Review Worksheet, which indicates that the project scored 36 out of 45 possible points, which equates to a "moderately desirable" project. In addition Ehlers and Associates has reviewed the but-for analysis for the project and recommends that while the return is not what the developer requested, it is sufficient to provide but-for motivation for the company to move forward with the project. Requested Action Staff requests that the EDA recommend to the City Council approval of providing Tax Rebate Financing assistance to Quality Label, Inc. in the form of a pay-as-you-go Tax Rebate Financing (TRF) note in the amount of $133,947 with the company receiving 100% of the annual TRF for a maximum period of up to 10 years. A requirement of the financing assistance \vill include a commitment from the company for the creation of 15 new full-time positions at a minimum hourly wage, exclusive of benefits required by law, of$15.00 within two years. A City Council public hearing has been scheduled for November 21,2005 to consider providing Tax Rebate Financing and business subsidy to the Quality Label project.