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<br />. <br /> <br />. <br /> <br />. <br /> <br />TAX INCREMENT FINANCING PLAN <br />TAX INCREMENT FINANCING DISTRICT NO. 9 <br />SUMMARY <br /> <br />Tescom Corporation, Inc., 12616 Industrial Boulevard, Elk <br />River, Minnesota seeks $194,000 in Tax Increment Financing <br />assistance to support its proposed 30,000 square foot expansion <br />on a vacant site adjacent to its existing 34,000 square foot <br />facility in the Elk River Industrial Park. At its Elk River <br />facility, Tescom produces regulators, valves, and control <br />devises. The current business grew out of applications in the <br />1960's which were heavily dependent on aerospace. Sales have <br />been greatly diversified since that time. This diversity <br />currently includes the following industries: Semi Conductor, <br />General Industrial, Specialty Gas, Instrumentation, <br />Government/Aero Space, and Petroleum/Hydraulic. The Elk River <br />facility currently employs 200 people, up from 54 when Tescom <br />moved to Elk River in 1982. The growth projections forecast <br />emploYment at the end of 1994 to be 265 to 270 people. <br /> <br />The Economic Development Authority for the City of Elk River, <br />Minnesota is proposing the creation of an Economic Development <br />District pursuant to the Tax Increment Financing Act. Tax <br />Increment funds will be used to "write-down" the acquisition of <br />the development site. In addition, funds will be used to <br />conduct borings and analysis of the property, site survey, and <br />for civil and engineering costs. <br /> <br />The 30,000 square foot facility will have a finished market <br />value estimated at $900,000, which produces property taxes <br />estimated at $43,300. These funds will be "captured" by the <br />City of Elk River so that the City can recover the $194,000 in <br />Tax Increment assistance. After recapturing the project debt, <br />Tax Increment Financing District No. 9 will be decertified, <br />thereby enabling all local taxing jurisdictions (County, <br />School, City, etc.) to share in the project's property taxes. <br /> <br />The Economic Development Authority for the City of Elk River, <br />Minnesota anticipates that Tax Increment Financing District No. <br />9 will exist for six (6) to seven (7) years. <br />