9.0. EDSR 07-11-2005 - Laserfiche WebLink

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ITEM # 9. • City of Elk -�-� River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: July I I, 2005 SUBJECT: Consider Tax Rebate Financing Assistance for Classic Acrylics, Inc. Attachment • Site Location Issue • Staff has been working with Classic Acrylics since the Fall of 2004 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 recommending that the City Council call a public hearing on the proposed Tax Rebate Financing (TRF) assistance request and business subsidy to the company. Project Description Established in 1998, Classic Acrylics specializes in custom plastic fabrication for point-of- purchase displays. The company is owned by three brothers, Stuart,Ron and Tom Patterson. The company currently employs 13 full-time staff with an average hourly wage of $15.00 per hour. Within two years of the expansion the company proposes to create five new jobs with an hourly wage of$15.00 exclusive of benefits required by law. The company currently leases 10,000 square feet in Dayton and is seeking a location within the northwest metro area to relocate and expand in time for lease expiration. Classic Acrylics proposes to construct a 20,000 square foot light industrial building on a 2.48-acre lot in Elk River Business Park, occupying 100% of the space. The lot accommodates an additional 5,000 square feet for Classic Acrylics' desired future expansion. Proposed Tax Rebate Financing Assistance Staff has proposed financing assistance in the form of a pay-as-you-go Tax Rebate Financing (TRF) note to the company in an amount up to 77% of the land cost at$150,000. The amount of the assistance has been established based on providing a land cost write down of