5.4. SR 04-08-1996 - Laserfiche WebLink

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TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 14 SUMMARY Marketech, Inc., 16864 Highway 10 NW, Elk River, Minnesota seeks $65,100 in Tax Increment Financing assistance to support its proposed construction of a 9,324 square foot facility in the McChesney Industrial Park. Marketech is a service company in the printed circuit board (PCB) market. The services offered include board test fixturing, in-circuit test development, loaded board test and repair, and design services. Marketech, Inc., currently occupies leased space at two facilities in Elk River, Minnesota, and currently employs twenty-two (22) persons at these facilities. As a result of the expansion, approximately five new full-time jobs will be created in 1996, four new jobs in 1997, and four new jobs in 1998. The Economic Development Authority for the City of Elk River, Minnesota is proposing the creation of an Economic Development District pursuant to the Tax Increment Financing Act. Tax increment funds will be used to "write- down" the acquisition price of the development site. The site, Lots 6 and 7, Block 1, McChesney Industrial Park, is currently owned by Jerry and Joanne McChesney. The Economic Development Authority for the City of Elk River proposes to reimburse Marketech, Inc., for its expense associated with the acquisition of Lots 6 and 7 under a pay-as-you-go Tax Increment Financing District. The 9,324 square foot facility will have a finished market value estimated at $400,000 which produces property taxes of approximately $16,800 per year. Of this total, $14,360 will be new additional taxes. These new funds will be "captured" by the Economic Development Authority so that the City of Elk River can recover the $65,100 in tax increment assistance. After these funds have been repaid, Tax Increment Financing District No. 14 will be decertified, thereby enabling all local taxing jurisdictions (county, school, city, etc.) to share in the project's property taxes. The Economic Development Authority for the City of Elk River, Minnesota anticipates that Tax Increment Financing District No. 14 will exist for approximately seven (7) years; during which time tax increment funds will be collected for five (5) years.