8.0. EDSR 08-08-1995 - Laserfiche WebLink

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b® ' ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY TO: Economic Development Authority FROM: William Rubin, Executive Direct y\/ " DATE: August 8, 1995 SUBJECT: Request for Tax Increment Financing Assistance TL Feeding Systems, Inc. Introduction At its August 8th meeting, EDA Commissioners will hear a presentation from Mr. Patrick Pelstring, CEO of Public Resource Group, Inc., a Plymouth-based economic development consulting group. Public Resource has been retained by TL Feeding Systems, Inc. to - assist it in a site selection exercise. TL Feeding currently leases space within a larger facility within the 8700 block of Wyoming Avenue North in Brooklyn Park,Minnesota. Following this presentation, it is likely that a request for Tax.Increment Financing (TIF) will be initiated on behalf of TL Feeding Systems in order to facilitate the construction of a 15,000 square foot manufacturing facility on a 3 to 5 acre site in the new Business Park • area. Background 1 Previously, TL Feeding Systems was a subsidiary of TL System s Corporation. Mr. Al Larson, principal of the company, recently sold his interest in TL Systems. This necessitates the expansion/relocation of TL Feeding Systems. TL Feeding System designs and manufactures vibratory and centrifugal feeding equipment and systems that orient various products for assembly and packaging. Primary customers are associated with the food sector, high technology,medical sector, industrial sector, and original equipment manufacturers (OEM). As of late July, Ti., had 10 employees. Additional information on the company is found in an attachment to this memo. At this writing, TL Feeding is requesting a1' assistance in the amount of$150,000. TN funds would be used to write down"the cost of a 3 to 5 acre site in the business park and for general site development/site preparation costs. EDA Commissioners should note that a 3 acre parcel at $1.00 per square foot (more or less) will cost nearly $131,000. This calculation assumes that assessments are included in the purchase price. In an August 2nd letter, Mr. Pelstring outlines the financing for the TL project. Under "Sources of Financing", please note that no company equity is included in the financing. Under a "pay-as-you-go" TIF transaction, the company would be required to acquire the land and fund the site development costs. The project's new property taxes are returned P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment