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ITEM 5.2, <br />ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br />MEMORANDUM <br />TO: Mayor & City G`ouncil <br />FROM: William, Rubin, EDA Executive Directo ~- <br />DATE:: May 8, 1995 <br />SUBJECT: Consider a Request for a Fublic <br />Hearing to Establish a New Tax <br />Increment Financing District <br />Introduction <br />At its May 8 meeting, the Elk River City Council will be asked to schedule a <br />public hearing to consider a Tax Increment Financing Plan for the creation. of <br />anew Tax Increment Financing District. A public hearing to consider the - <br />Tax Increment Financing Plan is requested for: June 19, 1995. <br />Background <br />The request for tax increment assistance comes from Neos, Inc., 19727 <br />Meadowvale .Road. Mr. Jack T. Mowry is president. of Neos; .Inc, He is also <br />the owner of Metal -Craft Machine and Engineering, also located at the same <br />address. Neos seeks $80,000 in'tax increment financing assistance to support <br />its proposed 12,000 square foot facility on two vacant lots in the 1VIcChesney_ <br />Industrial Park. Tax increment funds would be used to "write down" he cost <br />of the land and for general site development and site preparation costs <br />associated with this project. <br />At this writing; a 12;000 square foot facility, constructed of pre-cast tip-up _ <br />panels,.. or cement block construction, is anticipated. Neos, Inc., would-occupy <br />approximately 3,600 square feet of space within the new facility. Additional <br />space would be available for long-term lease to small industrial companies: <br />Neos de-signs and builds machinery - .specializing in packaging machinery. <br />Fiveexistng jobs would be retained as a resultof this expansion, and, six <br />new jobs would be created by Neos: In addition, prospective tenants wfluld ' <br />likely retain another eleven jobs and create ten new: ones. The project cost of <br />this expansion is estimated at $460,000. The land and building would likely <br />have a finished market value of $550,000: <br />P:O. Box 490 •:13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (b12) 441-7425 <br />Equal .Opportunity Housing and Equal Opportunity Employment <br />