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<br />Consider Tax Abatement Assistance for Metal Craft <br />July 9, 2007 EDA Meeting <br />Page 2 of 3 <br /> <br /> <br />Metal Craft, 12797 Meadowva1e Road, Elk River <br /> <br />Issue <br />After expanding its current facility in Elk River several times, Metal Craft has reached the <br />point of being landlocked. Staff has been working with Metal Craft for the past several <br />months to identify a site and financing assistance to retain the company in Elk River. <br /> <br />Project Description <br />The company would like to construct a 60,000 square foot light industrial facility on a <br />portion of the 17.11-acre Sandpiper Business Park (formerly known as the Gagne property). <br />The company will occupy the entire 60,000 square feet with the potential to expand up to <br />120,000 total square feet within six to eight years. The company plans to purchase the entire <br />17.11-acre Sandpiper lot, construct their building on a 9. 6-acre portion and plans to hold the <br />remaining 7.31 acres for investment purposes. <br /> <br />Proposed Financing Assistance <br />Metal Craft has submitted the attached Tax Abatement application. A summary of the <br />request and job retention/creation and wage goals are as follows: <br /> <br />. Up to $426,888 City assistance for a time period of up to twelve years <br />. Up to $426,888 Sherburne County assistance for a time period of up to ten years (per <br />County policy) <br />. 104 jobs retained & to be created (78 retained & 26 to be created) at an average wage <br />of $21.95 per hour <br /> <br />Staff has evaluated the company's application based on the attached Tax Abatement and <br />Business Subsidy Policies and the Tax Abatement Application Review Worksheet, which <br />indicates that the project scored 44.5 out of 45 possible points, which equates to a "highly <br />desirable" project. In addition, Ehlers and Associates will prepare the "but-for" analysis for <br />the project in preparation for the July 16th City Council meeting. <br /> <br />Requested Action <br />Staff requests that the EDA recommend to the City Council approval of providing Tax <br />Abatement assistance to Metal Craft Machine & Engineering with the following criteria: <br /> <br />. Pay-as-you-go Tax Abatement note in the amount of up to $426,888 <br />. Metal Craft to receive 100% of the annual Tax Abatement for a maximum period of <br />up to 12 years <br />