3.0. EDSR 03-06-2006 - Laserfiche WebLink

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ver MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development Scott Clark, Community Development Director ~i,, , DATE: March b, 2006 11 ~ SUBJECT: Discuss Potential Financial Incentive for a Business Seeking Location within the City of Elk River Attachment • Table: Recent Assisted Industrial Development Projects Background A business that is seeking location within the City of Elk River has recently requested financial assistance from the city. The purpose of the special EDA meeting is not to establish a formal policy on this type of request but rather to provide staff direction in the response for this particular request. As with most projects timing is of the essence as the company wishes to start construction by August 2006. It is staff's understanding that Elk River is now among the top two ox three communities in which the company is considering a location and they axe attempting to expedite their selection process. The company wishes to remain anonymous until a community is selected. Approximately two months ago staff was contacted by the company's site selection consultant. The company has identified approximately 20-acres in the City to acquire fox the construction of a 180,000 square foot data technology center. The company's estimated cost of the project is $125 million including land, design and construction, equipment and extensive mechanical systems, albeit that the end real estate value may have a range of $10-20 million. The company anticipates a minimum of 15 full-tune employment positions within the project with an average annual salary of $70,000 each. The company is Minnesota based and among the top 50 Fortune 500 ranking and one of the largest employers in the state. Issue There are a number of issues for the EDA to consider with this particular request, the following provides background information fox policy consideration and discussion: