8.0. EDSR 07-11-2005 - Laserfiche WebLink

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ITEM # 8. . 4k i1kj River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development/ DATE: July I I, 2005 ((,, SUBJECT: Consider Tax Rebate Financing Assistance and Sale of EDA Property for Alliance Machine, Inc. Attachments • Northstar Business Park Preliminary Plat • Purchase Agreement Form • Issue Staff has been working with Alliance Machine, Inc. for the past several months to identify a site and financing assistance to relocate and expand the company's operations to Elk River. The EDA is asked to review and consider the following actions: • Recommend the Council call a public hearing on the proposed Tax Rebate Financing assistance request and business subsidy to the company • Call a public hearing on the proposed sale of 2.84-acres of EDA property to the company Project Description Established in 1997,Alliance Machine, Inc. conducts light,precision machining of plastic and metal components for national and international clients in the aerospace,medical, defense and computer industries. The company is owned and managed by father and son, Pat Provo and Bryan Provo. Bryan is a graduate of Elk River High School. The company currently employs 30 full-time staff with an average hourly wage of$20.00. Within two years of the expansion the company proposes to create 9 new jobs with a minimum hourly wage of$15.00. The company currently leases 18,000sf in Maple Grove and is seeking a suitable location within the northwest metro area to relocate and expand in time for the lease expiration. Alliance Machine proposes to construct an 18,000 square foot light industrial building in • which the company would occupy 100% of the space. The 2.84-acre lot also accommodates and additional 10,000sf for Alliance's desired future expansion.