5.16. SR 06-19-1995 - Laserfiche WebLink

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TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 e SUMMARY Neos, Inc., 12797 Meadowvale Road, Suite B, Elk River, Minnesota seeks $80,000 in Tax Increment Financing assistance to support its proposed construction of a 12,000 square foot facility in the McChesney Industrial Park. Neos designs and builds machinery -specializing in packaging machinery. It currently occupies leased space at 12797 Meadowvale Road, Elk River, Minnesota, and currently employs five persons at this facility. As a result of the expansion, approximately six new full-time jobs will be created by Neos, Inc. In addition, the business incubator component of this facility is expected to create ten full-time jobs and retain another eleven positions. 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. Additional tax increment funds will be used for site preparation and site development costs. 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 Neos for its expense e associated with the acquisition of Lots 6 and 7under apay-as-you-go Tax Increment Financing District. The 12,000 square foot facility will have a finished market value estimated at $375,000 which produces property taxes of approximately $13,900 per year. These funds will be "captured" by the Economic Development Authority so that the City of Elk River can recover the $80,000 in tax increment assistance. After these funds have been repaid, Tax Increment Financing District No. 12 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. 12 will exist for approximately eight (8) years; during which time tax increment funds will be collected for six (6) years. e