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\ ' Item 7. <br /> )4• ", <br /> City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> Mayor & City Council <br /> FROM: Catherine Mehelich, Director of Economic Development /42 <br /> DATE: March 8, 2004 <br /> SUBJECT: Consider Property Tax Abatement for the Orluck Industries, Inc. <br /> Light Industrial Building Project <br /> Attachments <br /> • Tax Rebate Financing Application from Orluck Industries <br /> • Public Hearing Notice-February 31, 2004 <br /> • • Resolution Approving Property Tax Abatement <br /> • DRAFT-Tax Abatement and Business Subsidy Agreement <br /> Issue <br /> At its February 9, 2004 meeting the Economic Development Authority and City Council approved <br /> the Preliminary Expansion Siting Proposal that Orluck Industries be considered for receiving Tax <br /> Rebate (Abatement) Financing for the construction of a 20,000-square foot light industrial/business <br /> park building on the City-owned Joplin Street lot. In addition the Council directed staff to initiate <br /> the land use amendment process to change the land use from"Community Commercial" to "Light <br /> Industrial". <br /> Staff has completed the due diligence process for the land use amendment process, financial analysis <br /> and the City's Tax Rebate Financing process. Staff requests that the EDA consider recommending <br /> the Council's approval of the sale of the lot and tax abatement request. Following the EDA <br /> meeting,the City Council will hold a public hearing on the matter and consider granting final <br /> approval of the tax abatement request. Mr. Orluck is anticipated to be present for the EDA meeting <br /> to discuss the proposed project. <br /> Background <br /> Orluck Industries conducts light,precision machining of plastic and metal components for the <br /> medical, computer, semi-conductor and tele-communications industries. The final product <br /> components consist of either a fixture or testing device for the above industries. The company <br /> currently employs 13 full-time staff and 2 part-time positions with an hourly wage between$15.00- <br /> 22.00 per hour. Since the February meeting,Mr.Orluck has added 2 additional full-time employees. <br />