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rk,/ Al ITEM 8. <br /> ( <br /> MEMORANDUM <br /> yofti <br /> t <br /> tlk TO: Economic Development Authority <br /> River <br /> FROM: Pat Klaers, City Ad r i +i to <br /> DATE: March 11, 1996 <br /> SUBJECT: Request for Tax In rement Financing <br /> Assistance - Marketech, Inc. <br /> Introduction <br /> The EDA is in receipt of a request for Tax Increment Financing (TIF) from <br /> Rich Duggan, president of Marketech, Inc. This business is currently located <br /> at 16864 Highway 10, Elk River, Minnesota. The request is attached for <br /> your review. This application is not totally complete at this time, but is <br /> expected to be completed by Monday evening or very shortly thereafter. <br /> Marketech is a company that produces products that test fully assembled <br /> • circuit boards. The firm produces the test fixture and the test software. The <br /> request for TIF assistance relates to the proposed construction of an <br /> approximately 9,300 square foot facility. Approximately 1,750 feet would be <br /> for office and the balance, or about 7,550 feet would be for production. <br /> The total cost of the project is in the $335,000 range with the market value <br /> slightly less than this amount. Mr. Duggan is proposing to purchase two lots <br /> in the McChesney Industrial Park. TIF funds of approximately $50,000 <br /> would be used to "write down" the cost of the two lots for Mr. Duggan. This <br /> TIF project would be a "pay-as-you-go" project. <br /> Background <br /> It should be noted that this project is proposed for the same lots as the Neos, <br /> Inc. project. This was a Jack Mowry project that the Council authorized as <br /> TIF No. 12. This project is now dead as Jack has released these properties <br /> back to Jerry McChesney and Jerry and Rich Duggan have entered into a <br /> purchase agreement for Lots 6 & 7, Block 1, of the McChesney Industrial <br /> Park. <br /> With previous industrial expansions, TIF funds have been used by the <br /> city/EDA to assist local companies with their projects. Recent examples <br /> include Alltool Manufacturing, Timron Precision Gear, and Tescom <br /> • Corporation. TIF funds have been used to reduce project costs relating to <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />