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ITEM # 8.4. <br /> • <br /> City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development <br /> DATE: August 8, 2005 <br /> SUBJECT: Consider Recommendation to City Council for Approval of Tax <br /> Rebate Financing Assistance to RST Cayo, LLC (Classic <br /> Acrylics, Inc.) <br /> Attachments <br /> • Public Hearing Notice,Elk River Star News,August 3, 2005 <br /> • Site Location <br /> • • Memo from Sid Inman of Ehlers &Associated dated August 3, 2005 <br /> • Resolution Approving Property Tax Abatement <br /> • DRAFT Tax Abatement and Business Subsidy Agreement <br /> Background <br /> On July 11, 2005, the EDA reviewed a Tax Rebate Financing (TRF) concept for RST Cayo, <br /> LLC (who will lease the property to Classic Acrylics, Inc.) and recommended that the City <br /> Council call a public hearing for August 15, 2005 to consider providing TRF assistance to <br /> RST Cayo,LLC. Attached is the public hearing notice that appeared in the Elk River Star <br /> News on August 3, 2005. <br /> Established in 1998, Classic Acrylics specializes in custom plastic fabrication for point-of- <br /> purchase displays. The company is owned by three brothers, Stuart, Ron and Tom <br /> Patterson. The company currently leases 10,000 SF in Dayton. <br /> It is proposed that RST Cayo,LLC will purchase the land "up front" from the EDA and <br /> that the City and County will reimburse the company 77% of the land cost over an estimated <br /> 10-year period. <br /> Below is a summary of the project: <br /> City Assistance $75,000,which is approx. 39.5% of the land cost <br /> Building Size 20,000 SF <br /> Lot Size 2.48 acres to accommodate a 5,000 SF expansion (see attached map) <br /> Jobs Retained 13 ($15 average hourly wage) <br /> Jobs Created 5 ($15 minimum hourly wage) <br />