6.0. EDSR 05-10-2004 - Laserfiche WebLink

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ITEM # 6. • City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: May 10, 2004 SUBJECT: Tax Rebate Financing Request - Badger Ventures, LLC (Gradient Technology) Attachments • City of Elk River Micro Loan Policy Background At its March 8, 2004 meeting the Economic Development Authority and City Council approved the attached Revised Preliminary Expansion Siting Proposal and that Gradient Technology be considered for receiving Tax Rebate (Abatement) Financing. At its April meeting the City Council held a public hearing on the tax abatement request and business subsidy. The EDA and Council took no action on the request due to several unresolved issues related to the abatement application. The unresolved issues included: • Identification of a bank lender and proposed project financing terms • The possibility of an EDA Micro Loan request of up to $100,000 • Identification of the amount and source of eligible equity • Completion and review of a but for analysis Project Description Gradient Technology (G.D.O., Inc.) demilitarizes munitions for various branches of the military. None of the demilitarization is performed at the company's Minnesota facility, but rather at Crane Naval Service Warfare Center in Crane, Indiana. The Minnesota facility will be used for Gradient Technology's business office and for providing chemical engineering design services and equipment fabrication. The company will also have a lab for conducting research and development. The company currently employs 13 full-time staff,including 7 based in Minnesota and 6 in Indiana and elsewhere. The positions have an hourly wage between $16-75.00 per hour. The company anticipates creating up to 5 new positions at the Minnesota facility within 2-years. The new positions will likely consist of management and engineers. •