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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> 4, Item 6. <br /> MEMORANDUM <br /> TO: Elk River Economic Development Authority <br /> FROM: Marc Nevinski, Assistant Director of <br /> Economic Development <br /> rr <br /> DATE: August 14, 2000 <br /> SUBJECT: Consider Resolution Recommending City <br /> Council Adopt Tax Increment Financing Plan <br /> No. 21 for Opus Northwest/SoftPac, Inc. <br /> Issue <br /> The plan for.TIF District No. 21 will be presented to the City Council for <br /> consideration of approval on August 21, 2000. This will be the last formal action <br /> for the approval of the district. Staff requests that the EDA consider the terms of the <br /> • <br /> plan for TIF District 21 and send the attached resolution to the City Council for its <br /> consideration in approving the plan. <br /> Background <br /> TIF 21 has been proposed to assist in financing the development of the Emmerich <br /> site in the West Business Park. The proposed project will include the purchase of <br /> land and the construction of a 73,000 sf manufacturing facility by Opus Northwest, <br /> LLC. The facility will be leased SoftPac, Inc. (Formerly ANC) who will produce, <br /> package and distribute various juice drinks in boxes or pouches. SoftPac anticipates <br /> creating 60-80 jobs with wages of $13-$18 per hour, plus benefits. Many of the <br /> positions will be technically oriented. <br /> The TIF plan for TIF District 21 proposes to reimburse Opus Northwest on a pay-as- <br /> you-go basis for land acquisition costs in the amount of $728,000 plus eight percent <br /> interest. This amount includes the purchase price of the property ($700,000) and <br /> broker fees ($28,000). It is anticipated that it will take eight and one half years to <br /> fully reimburse the development costs, although changes in market values and tax <br /> rates will impact the actual length of the district. It is estimated that the project will <br /> generate an average of $136,000 annual increment over the life of the district. <br /> Due to the configuration of the building, the Planning Commission, following a <br /> public hearing at its July 25th meeting, recommended that the City Council approve <br /> • <br /> 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />