5.0. EDSR 02-11-2008 - Laserfiche WebLink

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ITEM # 5. c ~~'~''~ .~.~- iver MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: February 11, 2008 SUBJECT: Consider Recommendation to City Council for Approval of Tax Abatement Assistance for E & O Tool and Plastics Expansion Project Attachments • City of Elk River Tax Abatement & Business Subsidy Policies • E & O Tool Tax Abatement Application • Tax Abatement Application Review Worksheet Issue Staff has been working with E & O Tool owners, Tim Osterman, Jay Caswell and Gary Pearson over the past year to identify a site and financing assistance to retain the company's expansion in Elk River. In addition to Elk River, the company had considered other communities for its expansion. Tim Osterman, President of E & O Tool will be at the EDA meeting to provide background on the company's history in Elk River, its expansion plans and financing assistance request. Company Background E & O Tool and Plastics, Inc. was founded in Elk River in 1986. Since that time the company has developed into a full service injection molding company, manufacturing custom tooling on-site. The company provides these services to a variety of industries including appliances, home construction, sports equipment, agriculture and electronics. The proposed expansion project enables the company to meet the demands of their existing customer base, while adding additional facility capabilities needed to produce components for the medical device industry. The company currently operates in a 62,000 square foot primary facility and a 10,000 square foot secondary facility both of which are leased in the Elk River Industrial Park. In addition the company established a 21,000 square foot molding facility in Monterrey, Nuevo Leon, Mexico to serve clients in that market. The company currently employs a staff of over 120 in Elk River and 30 in Monterrey.