6.0. EDSR 07-10-2000 - Laserfiche WebLink

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( Item # 6. ty of lkRiver MEMORANDUM TO: Economic Development Authority FROM: Marc Nevinski, Assistant Director of Economic Development DATE: July 10, 2000 SUBJECT: ANC /Opus Proposal Issue A proposal has been submitted by Opus Northwest, in conjunction with Advanced Nutrionals Corporation/PouchPac Industries (ANC) to develop the 14.97 acre Emmerich property in the West Business Park. Opus and ANC are requesting that pay-as-you-go Tax Increment Financing be used to write down the land costs. Background ANC intends to build a state of the art plant in Elk River that will produce, package, and distribute beverage products in stand-up flexible pouches. The facility will be built by Opus Northwest and will consist of a premium fabcon concrete structure of approximately 75,000 square feet in Phase I and may approach 200,000 square feet in subsequent expansions. Six thirty-seven foot storage tanks will be included in the design of the building and will require a conditional use permit. ANC plans to employ approximately 50 people with the initial phase and up to 200 with subsequent expansions. Many of the jobs will be technically oriented and will command higher wages. Staff has proposed the following financial package for the project: • Refund 100% of land costs over a 4-5 year period (interest rate to be negotiated). • $100,000 micro-loan at four (4) points below prime • 20% reduction in water rates for a three-year period of all water usage in excess of 2,000,000 gallons per month. As is often the case, this project is on a very tight schedule and staff is doing its best to accommodate the timeframe where possible. Opus and ANC are in the process of completing the necessary paperwork, 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612) 441-7420 • Fax: (612)441-7425