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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Economic Development Authority 9.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session November 20, 2023 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />Shoot Steel TIF Modification Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Item presented for information and discussion purposes. <br /> <br />Background/Discussion <br />Moyer Properties received Tax Increment Financing (TIF) from the city in 2020 to facilitate the purchase of EDA <br />property and construction of a facility for the relocation of Shoot Steel from Ramsey to Elk River. Shoot Steel <br />was required to increase their employee headcount from 7.5 to 13.5 as part of the TIF and business subsidy <br />agreements with the city by June 3, 2023. Shoot Steel was not able to meet the job creation goal in that timeframe, <br />and was granted a one-time, one-year extension through June 3, 2024, to meet the requirement. Due to <br />unanticipated business conditions, Shoot Steel has indicated it will not be able to meet the job creation goal, and <br />has seen a reduction in payroll to five employees. Per the agreements, not satisfying the job requirements of TIF <br />results in a proportionate reduction in TIF, or full rescinding of TIF if no additional jobs are created. <br /> <br />Approximately one-half of the building is being used for Shoot Steel. Moyer Properties has been working with a <br />company to rent the remaining space. This company has similar jobs and payroll as Shoot Steel. Evan Moyer, <br />principal owner of both Moyer Properties and Shoot Steel, has been discussing with staff whether an additional <br />business within the facility could help satisfy the jobs requirement. Mr. Moyer has provided a summary regarding <br />this issue and will be present to discuss it further with the EDA. <br /> <br />This discussion is a continuation of this topic from September. As an amendment to the TIF would be necessary <br />for such a change, and as any amendment to the TIF agreement would be subject to review by the EDA and <br />approval by the City Council, staff are seeking direction regarding the EDA’s position on modifying the TIF. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Support existing businesses. Attract new businesses. <br /> <br />Attachments <br /> Memo from Evan Moyer <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />