5.1. EDSR 08-09-2004 - Laserfiche WebLink

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ITEM # 5.1. • City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development Catherine Mehelich, Director of Economic Development DATE: August 9, 2004 SUBJECT: Gradient Technology & Orluck Industries Project Update Gradient Technology Background On July 7, 2004,Badger Ventures,LLC began constructing a 13,000 square foot light industrial/business park building on a 2.05-acre lot in Elk River Business Park. The building • will be leased to Gradient Technology who demilitarizes munitions for various branches of the military. The building will be used for the company's office,research& development, and equipment fabrication operation. In June 2004,the City and Sherburne County approved Badger Ventures'request for Tax Abatement (Tax Rebate Financing) to write down the land acquisition. In addition, the EDA provided Badger Ventures with a$100,000 Industrial Incentive Program Micro Loan to assist in financing construction costs. The company currently employs 13 full-time staff,including 7 based in Blaine,Minnesota and 6 in Indiana and elsewhere. The positions have a wage range of$16-$75.00 per hour. The company anticipates creating up to 5 new full-time jobs in Elk River with estimated wages ranging from$10-$75.00 within 2-years. Project Status According to Gradient Technology CFO Eric Haehn, the construction is on schedule. The company anticipates occupancy in November/December this year. Orluck Industries Background In March 2004 the City approved Orluck,LLC's request for the purchase of the city-owned 2.97-acre lot located at Joplin Street and Business Center Drive. Sherburne County • participated with the City to approve Tax Abatement (Tax Rebate Financing) to write down the land acquisition.