10.0. EDSR 06-12-1995 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: Economic Development Authority FROM: William Rubin,Executive Directofl DATE: June 12, 1995 '/ vv SUBJECT: EDA Public Hearing on Tax Increment Financing Plan for Tax Increment Financing District No. 12 (Mowry/Neos, Inc. Expansion Project) Introduction At its May 8 meeting, the Elk River EDA authorized a public hearing for June 12, 1995, to consider a Tax Increment Financing Plan for Tax Increment Financing District No. 12. • Background The Request for Assistance/Revision to Project Size The request for tax increment financing assistance comes from Mr. Jack T. Mowry/ Neos, Inc., 12797 Meadowvale Road. Mr. Mowry is president of Neos, Inc. He is also the owner of Metal Craft Machine and Engineering, 12797 Meadowvale Road. Neos designs and builds machinery specializing in packaging machinery. Newly expanded space would enable Neos to grow; its vacated space within the Metal Craft building would also allow that company to meet its demands for continued growth. Initially, the Mowry/Neos expansion called for the construction of a 16,000 square foot office and manufacturing facility to be located on Lots 6 and 7, Block 1, McChesney Industrial Park. The Tax Increment Financing Plan for Tax Increment Financing District No. 12 reflects a 16,000 square foot facility and its respective valuation of approximately$585,000. At this writing, Mr. Mowry is now proposing the construction of a 12,000 square foot facility with a finished valuation between $300,000 and $325,000 (excluding land value). In the interest of time, these revisions are not reflected in the draft Tax Increment Financing Plan. Instead, a revised Exhibit D reflects a lower finished market valuation. The lower valuation requires the City/EDA to 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