6.1. EDSR 09-21-2020 - Laserfiche WebLink

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��i City of Elk , Request for Action River To Item Number Economic Development Authori 6.1 Agenda Section Meeting Date Prepared by Consent September 21, 2020 Amanda Othoudt,ED Director Item Description Reviewed by Sale of 17565 Tyler Street NW, Northstar Business Cal Portner, City Administrator Park and TIF Request Reviewed by Action Requested 1. Open Public Hearing to consider the sale of EDA property located at 17565 Tyler Street NW and invite public comment. 2. Close the Public Hearing. 3. Approve,by motion,a resolution approving the purchase agreement and conveyance of the property located at 17565 Tyler Street NW,Northstar Business Park. 4. Review TIF Plan and application for assistance and provide a recommendation to the City Council. Background/Discussion The EDA has received a purchase agreement for 17565 Tyler Street,NW from Shoot Steel, Inc. of Ramsey,MN. They manufacture AR500 and AR550 steel targets,target stands, and other valuable range equipment. The purchase agreement proposes the purchase of a 4.34-acre lot at of$2.00 per square foot for a total of $378,100. Shoot Steel will provide $20,000 earnest funds and will be credited against the purchase price. They propose to relocate 7 FT and 1 PT employees and hire 6-7FT employees over the next two years. The positions will pay a minimum of$18 per hour depending on skill level. At their August 17, 2020, meeting, the EDA approved the purchase agreement contingent on the EDA holding a public hearing on September 21, 2020, and making the requisite findings required by Minnesota Statutes Section 469.105, subdivision 2 that the sale and conveyance of the property to the buyer are in the best interests of the city and the transaction furthers the EDA's general plan of economic development. Shoot Steel also indicated their intention to apply for incentives through the EDA and have applied for Tax Increment Financing to fund a portion of the acquisition and infrastructure improvement costs necessary to proceed. The purchase agreement has been amended to include contingencies to address public financing. The developer's proposed financial package includes long-term,private financing of$1,259,050 from Village Bank, $1,036,000 in SBA financing, $200,000 from a private investor and $98,258 in owner equity for a total estimated budget of$2,993,308. There is an identified gap of$400,000. The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional p D W E H E D D Y service, and community engagement that encourages and inspires prosperity ,g /` UR