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ity of <br /> <br />ITEM 8. <br /> <br />MEMORANDUM <br /> <br />River <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Economl c Development Authority <br /> <br />Pat Klaers, City Adm~~ <br />March 11, 1996 <br /> <br />Request for Tax In6rement Financing <br />Assistance - Marketech, Inc. <br /> <br />Introduction <br /> <br />The EDA is in receipt of a request for Tax Increment Financing (TIF) from <br />Rich Duggan, president of Marketech, Inc. This business is currently located <br />at 16864 Highway 10, Elk River, Minnesota. The request is attached for <br />your review. This application is not totally complete at this time, but is <br />expected to be completed by Monday evenin g or very shortly thereafter. <br /> <br />Marketech is a company that produces products that test fully assembled <br />circuit boards. The firm produces the test' fixture and the test software. The <br />request for TIF assistance relates to the proposed construction of an <br />approximately 9,300 square foot facility. Appro~dmately 1,750 feet would be <br />for office and the balance, or about 7,550 feet would be for production. <br />The total cost of the project is in the $335,000 range with the market value <br />shghtly less than this amount. Mr. Duggan is proposing to purchase two lots <br />in the McChesney Industrial Park. TIF funds of approximately $50,000 <br />would be used to "write down" the cost of the two lots for Mr. Duggan. This <br />TIF project would be a "pay-as-you-go" project. <br /> <br />Background <br /> <br />It should be noted that this project is proposed for the same lots as the Neos, <br />Inc. project. This was a Jack Mowry project that the Council authorized as <br />TIF No. 12. This project is now dead as Jack has released these properties <br />back to Jerry McChesney and Jerry and Rich Duggan have entered into a <br />purchase agreement for Lots 6 & 7, Block 1, of the McChesney Industrial <br />Park. <br /> <br />With previous industrial expansions, TIF funds have been used by the <br />city/EDA to assist local companies with their projects. Recent examples <br />include Alltool Manufacturing, T~mron Precision Gear, and Tescom <br />Corporation. TIF funds have been used to reduce project costs relating to <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />