5.3. SR 03-08-2004River
MEMORANDUM
Item 5.3.
TO:
FROM:
DATE:
SUBJECT:
Economic Development Authority
Mayor & City Council
Catherine Mehelich, Director of Economic Developmen~,~ '. ,,'
March 8, 2004
Consider Concept Approval of the Gradient Technology, Inc.
Expansion Siting Proposal
Attachments
· Correspondence from Mary Ippel, Briggs & Morgan P.A. regarding Tn= No. 19,
March 2, 2004.
· Staff Report to the EDA regarding Gradient Technology Proposal, February 9, 2004.
Issue
At its February 9, 2004 meeting the EDA postponed discussion of the Gradient Technology,
Inc. Expansion Siting Proposal due to a request by the applicant. Since then staff has been
working with the prospect Gradient Technology in completing the City Tax Rebate
Financing Application. Representatives from Gradient Technology are prepared for the
EDA and City Council to discuss the proposal at its March 8 meeting.
Staff has become aware of some concern from Council and EDA.members about whether
or not tax increment financing or tax abatement can be provided for prospects that locate in
the Elk River Business Park due to its perceived association with the City's Tax Increment
Financing District No. 19 redevelopment project (the shopping center). The attached
correspondence from attorney Mary Ippe1 of Bdggs & Morgan provides the city a written
opinion following her review of the Tn= No. 19 documents. Ms. Ippel states in her letter
"the City is not precluded by the Contract from reimbursing a business locating in the
Business Park Project for eligible costs of a manufacturing or warehousing and distribution
facility in the Business Park".
Over the past year staff has been working under the EDA's direction to work with private
landowners for the cooperative marketing and development of their business park/light
industrial land. These discussions with the landowners have included the owners of the Elk
River Business Park.
BRIGGS AND
2200 FIRST NATIONAL BANK BUILDING
332 MINNESOTA STREET
SAINT PAUL, MINNESOTA 55101
TELEPHONE (6511 808-6600
FACSIMILE (65l) 808-6450
PROFESSIONAL ASSOCIATION
March 2, 2004
WRITER'S DIRECT DDLL
(651) 808-6620
WRITER'S E-MAIL
mippel~briggs.com
VIA E-MAIL
Cathy Mehelich
Community Development Director
Elk River City Hall
13065 Orono Parkway
Elk River, MN 55330-5600
Dear Cathy:
I have reviewed the Contract for Private Redevelopment by and between the Economic
Development Authority in and for the City of Elk River and Associated Investors of Elk River,
Inc., Fischer Sand & Aggregate, LLP, and Elk River Business Park, LLC dated July 30, 1999
(the "Contract"). The Contract reimburses Associated Investors of Elk River, Inc. from tax
increments derived from Tax Increment Financing District No. 19 for a portion of the costs of
acquiring, clearing and preparing the land (the "Reimbursable Redevelopment Costs") related to
the development of approximately 250,000 square feet of commercial retail building space (the
"Shopping Center Project"). The Contract provides that Associated Investors of Elk River, Inc.
will be reimbursed for the Reimbursable Redevelopment Costs for the Shopping Center Project
based upon an annual schedule of completed light industrial building space to be developed on
business park property described in the Contract.
In addition, the Contract provides that the City will be reimbursed from tax increments
derived from Tax Increment Financing District No. 19 for public improvement costs related to
the development of the Shopping Center Project.
Because tax increments derived from Tax Increment Financing District No. 19 have not
been used to reimburse for costs associated with the Business Park Project as defined in the
Contract, the City is not precluded by the Contract from reimbursing a business locating in the
Business Park Project for eligible costs of a manufacturing or warehouse and distribution facility
in the Business Park Project; provided that a new tax increment financing district is established
and the applicable provisions of the tax increment financing law are complied with.
1623789vl
MINNEAPOLIS OFFICE · IDS CENTER · WWW.BRIGGS.COM
MEMBER - LEX MUNDI, A GLOBAL ASSOCIATION OF INDEPENDENT LAW FIP,5{S
BRIGGS AND MORGAN
Cathy Mehelich
March 2, 2004
Page 2
MLI/tfy
If you have any other questions, please do not hesitate to contact me.
Very truly yours,
/s/ Mary L. Ippel
Mary L. Ippel
1623789vl
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Economic Development Authority
Mayor & City Council
Catherine Mehelich, Director of Economic Development'~,.~//~'~
February 9, 2004
Consider Concept Approval of Gradient Technology Expansion
Siting Proposal
Attachments
· Preliminary Expansion Siting Proposal for Gradient Technology, February 2, 2004.
Issue
The attached Preliminary Expansion Siting Proposal has been submitted by staff to Gradient
Technology with regard to the company's proposed relocation project. Gradient
Technology proposes to construct a 13,000-square foot light industrial/business park
building for their office, research & development, and equipment fabrication operation.
Staff has proposed that the company purchase a 1.5 acre lot within the Elk River Business
Park and that the City consider a write down of the land cost to $0 through a pay-as-you-go
note to the company. Staff anticipates that a representative from the Gradient Technology
will be present for the EDA meeting to discuss the proposed project.
Background
Gradient Technology (G.D.O., Inc.) demih'tarizes munitions for various branches of the
military. None of the demih'tafization is performed at the company's Minnesota facility, but
rather at Crane Naval Service Warfare Center in Crane, Indiana. The Minnesota facility will
be used for Gradient Technology's business office and for providing chemical engineering
design services and equipment fabrication. The company will also have a lab for conducting
research and development.
The company currently employs 13 full-time staff, including 7 based in Minnesota and 6 in
Indiana and elsewhere. The positions have an hourly wage between $16-75.00 per hour.
The company projects to create 3 to 5 new positions at the Minnesota facility within 2-years.
The new positions likely consist of management and engineers.
Consider Approval of Gradient Technology Preliminary Proposal
EDA Meeting February 9, 2004
Page 2 of 2
Staff has been in contact over the past one and a half years with Eric Haehn, Vice
President/CFO of Gradient Technology. The company currently leases space in Blaine, MN
and is seeking a suitable location within the northwest metro area to relocate. The City of
Big Lake has aggressively pursued the company's relocation project, in addition to staff's
efforts.
Mr. Haehn proposes to construct a 13,000-square foot building, in which the company
would occupy the entire space.
Staff has proposed the following site and financial package for the project:
· Location - A 1.5-acre parcel to be subdivided within the Elk River Business Park.
The business park is owned by a partnership between Amcon Construction,
Brookstone, Inc., and Fisher Land Development.
· Write-down of 100% of land costs by way of a pay-as-you-go Tax Rebate Financing
note that would then reimburse the company for land costs estimated at $105,197.
As is often the case, this project is on a tight schedule and staff is doing its best to
accommodate the timeframe where possible. Mr. Haehn is in the process of completing the
necessary paperwork, including the TRF application and submitting site plans. Although the
TRF application was not available for inclusion in this packet, it is staff's intention to
provide a copy of the application and a rating sheet at the EDA meeting.
Action Requested
Staff recommends that the EDA consider recommending to the City Council approval of
the Preliminary Proposal concept for the Gradient Technology project and direct staff to
complete the due diligence process for the financial analysis and Tax Rebate Financing
process. Per the City's TRF policy, any requests over the amount of $25,000 requires
financial review and but-for analysis by the city's financial advisor, Ehlers & Associates.
04 O3:~Sp GRRDIEMT TECHMOLOG¥
City of Elk River
Preliminary Expansion Siting Proposal
Gradient Technology
Revised February 2, 2004
Site
A.
1.S ac:~
A proposed mbdimion of Lo~ 5. Block 1, E~ ~v= Business P~k
Access from [ndustm~ C~cle.
Jee atta~d i~io~ Ma;.
Building, Re= uixcme, nt~
rccluk-cmen~, An xccessory building fox materials storage could be all=wed.
.~e~ altaehed Busi,~;., Park Di3'lrice Orvh'namz Req~rme~ts.
~ost/¥'atuc
$1.61/sf 1.5-a:zes Total: S105,197
Inciude.~ special ~ssessmcnts and p~k dedication.
prc~¢ct Trna e£~,rne.
Upon acceptance of tkks Preliminary Proposal and it letmr ofmteg~, the Du~oz of
Economo Development w~ pr~e and s~b~ a comprehensNe proposal
md~g a deta~ed project ~emble for finance and b~dmg Pmme ~g and
~m~on rcq~emmt~.
A, rh~ me thc pr=posed ~te ~o~d re~c an ad~su=m~e ~ub&vision
app~n, to be submltt~ by the l~dg~:c: m thc ~ ~ for con~radom
T~ pz~ms could be completed wi6xm 30-days. F~g app~agon r~' ~d
~nside=do~s can ~xke up to 45-d;ys ~nd c~ r~ coati--fly ~k ~c
~sm6ve sub~xqsion, bufl~g site pl;n md p~t ~ppfi~on =v~ew proems.
04 03:~5~ ~RRIDIEMT TECHMO~LOGY
7G27929~72
p-3
Il.
Financing
A. Prm¢ct Co,cs
L~d
Con~u-uc6on
E~ment $ 0
Tomi U~ ~755,197
1.5 acr~ a~ $1.6I/SF
Es'dmxt¢ - 13,000 SF at $50.00/SF
Pzopo~¢d Buainess [:~mncm! $ouxc~s
Bank $ 574,924
Owne: Eqm~ i 75,076
T~x Rcba~ Finance ~ 105.~7
Tot~ Sources $ 755.197
90 % Building Cost
10% if using SBAS0~ via Bank
50/50 City and Coun .ty*
Total City, Assmtance Propoted: $ 52,598.50
Total Cotm~yAssistance P:opo~ed: $ 52,598.50
j~b & Wage Ooal~ (to be met witizim 2 years of building occupancy)
Job Creation 5 full-me it $15.00/hour (mir~um)
Job Retention 13 full-r.i~c at $13,00-75.00/hour
trinancing Applications
Tax Rebate Financing assistance, or 'I'~ Abatemev~t, is Woposcd ~o be provided Ln
thc for~ of "pay-as-you-go" basi~, b x~-hich the buyer (Gradient Technology) pays
improvement costs up front, and then is reimbursed annually with 100% of
abatement proce:ds upon receipt of anmaal re~[ eztaee taxes by dec City md County
£or a maximum teem/amount equal ~o the land cost or 7-years, ~he carE=r, Thc
buyer could con~ider an a~signment of the "pay-as-you-go" note ~o · batik for
"upiront equi9"' f-maneing.
Other.
Pro.~osa! is co. Zinge~t u'?on kt~er of approval from quahfied lendi'~ institution.
P:oposal ks contmgerzt upon approval~ £rom the Elk tLivex Economic Developmen~
Authozity, City Coundi and Shcrbume Coum~ Board of Commissioners.
Proposal m exclusive of oroject contractor/bualdar. Plo=,cvcr, Arncon Consri~ac=on
or ~c ~downez p~tae~h~P wo~d c~sidcz ~cc~nng ~n assi~men~ of the
abatement mote m ex~ge ff ~c buy~ b~ds wi~ Amcon Cons=ut=on.
Ad,mend acre, S, beyond buyers atonal ne~s, may also be c~sidered if bufl~g
x~ith Amcon.
p~epted:
B.~'"- -
t_ity of .~.~7,~
R2ver'
l;3065 Orono Parkway
~El~.9~r, kin 553302
Business
PROPOSaD NORTHSTAR CORRIDOR { ~,,~
COIvlMUTER RAIL DEPOT /i ,.,_._~,
ELK PATH BUSINESS CANTER
~illll 8° ACRES ~ ....
GAGN~ PROPERTY
18 ACRES /
ELK RIVER BUSINESS PARK
25 ACRES
ELK FIIVEF EDA PROPERTY
45 USEABLE ACRES OUT OF 90
CASCADE INDUSTRIAL PARK
46 ACRES
NEW INDUSTRIAL DEVELOPMENT
EXPANSIONS / RETENTION
For site specifics call Cathy Mehetich at 763-635-1041
?helle: '76¢.~-~-1,7420 Note This map does not show the entire
[::L,:: 76~.441.742¢ city limits of the City of Elk River
Sites
..... .....; , /--.,..: .,: -'--- ~
~ ~I ~ ","' // :%!: '
"x' ~'\ ' I
~ !:~ ..... ~..~",~'~ ~ ~1 ....
§ 30-1293 ELK RI%'IER CODE
(19) Ministorage.
(2011 All uses allowed as a conditional use in
the I-1 zone.
(e) ,4rcAi~,ec~sra[ s~andards. No provisions of
section 30-93S except subsection 30-938(2) per-
taining to exterior buildin=~ finish and subsection
~0-9oS/.o.) pertaining to roofing standards applies
to this district.
{Code 1982, ~ 900.12(15)i
Sec. 80-1294. BP business park district.
(a) P~rpo.se.
(t) The business park district is established
to encourage a planned, inte~orated envi-
ronment for certain industrial, office, and
commercial uses which are compatible
with and complement each other as well
as the surroundin~ land uses. The under-
lying land use desi=o-nation within the dis-
trict may vary and may be either light
industrial or highway business. Develop-
ment within the business park district
will correspond with the land use desig-
nation. Industrial and office .uses are al-
lowed where the land use designation is
light industrial, and commercial uses are
allowed where the land use desi~natlon is
highway business.
(2) It is the intent of this section that devel-
opment reflect common themes using com-
patible architectural design and consis-
tency in si=cringe, landscaping, smd lighting.
It is also the intent to encourage busi-
nesses which generate a high number of
jobs per square foot rather than predom-
inantly warehouse type uses.
(b) Per'mi~;~;ed ~ses. Permitted uses in the BP
district are as follows:
(1) Permitted uses allowed when the under*
l~dng land use is light industrial are as
follows:
a. Light manufacturing.
b. Research and development laborato-
ries.
c. Government, basiness, and profes-
sional offices.
d. Mail order operations.
e. Telecommunication operations.
f. Sherburne County fair.
g. Warehouse space not exceeding 50
percent of the entire building.
h. Showroom space.
i. Repair and maintenance, excluding
auto repair.
(2) Permitted uses allowed when the under-
lping land use is highway business are as
follows:
a. Health a:hletic clubs.
b. Personal service establishments.
c. Financial institutions.
(c) Accessory ~ses. Accessory uses in the BP
district are as follows:
(1) Off-street parking lots or facilities.
(2) Private recreational facilities.
(3) Public shelters and essential services.
(40 Retail sales, proxdded the following condi-
tions are met:
a. The retail sales activity shall not be
located in an administrative office
facility, but shall be located within a
business, the principal use of which
is not commercial sales.
b. The retail sales activity shall not
occupy more than 15 percent of the
gross floor area, or a maximum of
5,000 square feet of the occupied
quarters, whichever is less.
c. The retail sales activity shall be re-
lated and subordinate to the princi-
pal use.
d. No si~om identi$ing~ or promotin~ that
retail sales occur within the building
shall be ~dsible from outside the build-
lng.
e. Freestanding retail shops and stores
shall be limited to those which com-
plement other uses within the busi-
CD30:138
L--%t\rD DEVELOPP£EN'T Pd~GUL.&TIONS § 30-!294
ness park and provide a service to
those other businesses, and shall not
exceed 20,000 square feet in size.
P~etaib"wholesale sales incidental to
products manufac:ured, assembled.
or warehoused on the premises may
be permitted as an accessory use
provided no more than ten percent of
the building is used for retaiPwhole-
sale sales.
(5)
Therapeutic massage when offered within
the confines of a medical or chiropractic
clinic.
(6.) Temporary signs as permitted in section
30-851 et seq.
Permanent signs. Not withstanding the
provisions of section 30-$50 et seq., the
following requirements shall be met:
a. All freestanding signage shall be of a
monument style si=~m and have a
maximum size of 64 square feet and
height of eight feet.
One on-premise business wall
per occupancy, not to exceed two
square feet in sig-n area for each
linear foot of the building frontage
up to a maximum of 128 square feet
per occupancy is permitted.
(d) Co~zg£tfonat uses. Conditional uses in the
BP district are as follows:
(1)
Conditional uses allowed when the under-
1.ving land use is light industrial are as
follows:
a. Warehouse space exceeding 50 per-
cent of the total building floor area
up to a maximum of' 6,5 percent.
b. Vocational, technical and trade
schools.
c. Loading' areas/overhead doors when
located in front yards.
d. Aboveg~'oand storage tanks.
e. Government buildings and fk~ciiities.
(2) Conditional uses allowed when the under-
lying land use is highway business are as
follows:
a. Hotels and motels.
b. Licensed day care facilities.
c. Retail shops and stores which
plement and sem,e the business park.
subject to the standards set forth in
subsections (c)/4)e and f of this sec-
tion.
d. Motor vehicle specialty service sta-
tions.
e. Loading areas/overhead doors when
located in front yards.
f. Class I restaurants.
(e) Additional s~anda,-ds. The followin~o' addi-
tional standards apply in the BP district:
(1) Loadin~ spaces a~td ou~rhead doors.
a. Loading spaces/overhead doors shall
be located in desi~omated rear yards
and secondarily in designated side
yards. Loading' areas/overhead doors
shall not be located in designated
front yards unless approved as a
conditional use.
b. Loading spaces and overhead doors
shall be desi~o-aed to be compatible
with the principal building..~rchitec-
rural techniques and landscaping
shall be employed to reduce visual
impacts from adjacent properties and
roadways.
(2} Dumps~ers and re/u.s~ enclosures.
a. All dumpsters shall be completely
screened from public mew by using
enclosures constructed of similar ma-
terial as the principal building.
b. P~efuse enclosures shall include gates
and be located in designated rear or
side yards.
~ooft, op or g','oL~td cZec*~rma/
$~.~s.
a. ::3] utiliW equipment shall eRher be:
Screened fi'om the eye level view
of' adjoinm~- properties by use
of' exterior walls and/or land-
scaping;
~ 30-1294 ELK R1-VER CODE
(4)
2. Painted to match or comple-
ment the building structures:
or
3. Incorporated into an architec-
tural desi~m~, as approved by
the building and zoning admin-
istrator.
b. Notwithstanding the provisions of
subdivision II of division 5 of this
-article, the followin8 requirements
regarding si~o-aage shall be met:
1. ,~1 freestandin~ si~nage shall
be of a monument style sign
and have a maximum size of 64
square feet and height of eight
feet.
2. One on-premises business wall
sign per occupancy, not to ex-
c'eed two square feet in si~n
area for each linear foot of the
building frontage up to a max-
imum of 128 square feet per
occupancy, is permitted.
E~erfor bu~Idfng l~nfshes.
a. It is the intent of the city to promote
and encourage high standards of cre-
ative architectural desism in the busi-
ness park district.
b. In the business park zoning district
the following are acceptable building
materials and finishes:
1. Brick.
'2. Natural or cut stone.
8. Inte~ally colored split face (rock
face), burnished, or glazed con-
crete masonry unit/excluding
plain or painted).
4. Inte=o-ralty colored and exposed
aggre=~ate precast concrete pan-
els (excludin8 single-T or dou-
NeT panek plain, uncolored,
or raked finishi~ or specially de-
signed? cast-in-place concrete.
5. Glass, architectural metal, fi-
berglass and aluminum, pro-
vialed such panels are factory
fabricated and finished with a
durable nonfade surface and
their fasteners are of a cmvosion-
resistant desi=~n.
6. Stucco, Et.RS., and other
cementitious coating.
?. Wood, provided the surfaces are
-finished for exterior use or wood
of proven exterior durability is
used, such as cedar., redwood,
and/or c~vpress.
$. Other materials determined as
acceptable by the planning de-
partment.
c. Major ekterior surfaces that are ad-
jacent to any public street, public
trail/path, or adjacent residentially
zoned properties shall be of one of
the acceptable materials and shai]
be combined with at least $0 percent
of one or more acceptable materials,
or with 40 percent punched open-
in=~s, with or without glass (or as
much as allowed by the Llniform
]Building Code, whichever is less),
neither of which are to be concen-
trated in any one location, unless to
accentuate a desi~om feature. Major
exterior s%ufaces that are ~isibte from
but not adjacent to any public street,
public trail/path, or adjacent residen-
tially zoned properties shall be con-
sidered transition walls and may have
less than the $0 percent combination
or less than 40 percent punched open-
ings, but either shall not be reduced
to zero percent). Reductions below
20 percent shall require staff ap-
proval. Such walls shall be screened
fi'om view with additional landscap-
ing. The requirement to have at least
S0 percent of one or more acceptable
materials shall not apply to the load-
ing dock wall.
d. ~ajor exterior surfaces that are ad-
jacent to any public street, public
trail/path, or adjacent residentially
zoned properties shall not exceed
160 feet zero inches in length with-
out a n~mimum four-foot depth chan~e
$~,p~: No 2 CD30:140
LAND DE\,UELOPMENT REGULATIONS
9 30-1s10
(recesses, protrusions, or a combina-
zion thereof), with at least Two feet of
such change to be in the entire height
of :he facade.
e. AJternanvely, exterior wall surfaces
are zo be desi~zned with architectural
interest through muhiple desi~ tech-
niques such as. but not limited Go,
architectural forms, reveals, tex-
tures~ cornice detailing', changes in
surface planes, color, punched open-
in===~ andfor changes in parapet ele-
vations. The use of design tech-
niques alone or lower percentage of
addition~ acceptable mate.hals noted
in subsection (e/(4>c of this section
shall require site plan review and
approval by the city planning com-
mission.
£ The building shall be desigmed so as
to prevent the appearance of straight,
unbroken lines i~3 the horizontal and
vertical surfaces.
g. Main entrances shall be emphasized
~dth a comptementm-y material which
is different from the primary build-
ing material.
h. Garage doors shall have a color that
matches or coordinates with the
building's primary body color.
i. The building shall be desiyned to
screen equipment located on the roof
of the building. ~aAternativel~; such
equipment shall be located in such'a
manner so that it cannot be seen
fora the adjacent public street, pub-
lic patMtrail, or adjacent residen-
tially zoned properW at the same
elevation of ~he first floor of the
building.
<5) L~zr:dsc~gvzg Notwithstanding ~he provi-
sions of subdivision I-V of division 5 of this
article, the followin~ requirements shall
be met:
a. Of the total nmnber of oversto~-
trees required, a minimum of 25
percent shall be ornamental trees
and 25 percent shall be conifer trees.
b. A landscaping credit of up to 25
percent may be ~ven to a site plan
which contains exterior sculptures,
fountains, ponds beyond those re-
quired for storm drainage and other
site enhancements as approved by
the building and zoning administra-
tor.
c. UndergTound irrigation shall be in-
stalled within the front yard and all
landscaped araas adjacent to a pub-
lic right-of-way.
(Code 1982, § 900..12/16); Ord. No. 00-11: ~ 1,
6-19-2000; Ord. No. 00-16, ~ 1--.3, 9-15-2000;
Ord. No. 01-13, § 1, 8-20-2001: Ord. No. 02-01, § 1,
1-22-2002; Ord. No. 02-04, § 2, 4-15-2002)
Editor's note--A~ ~he ciW% request addinona] material
was added ~o subsection $0-1294(c)(?) which e×pamded this
subsection with a.. b.
Secs. 30-1fi95--30-1310. ~eser~ved.
~ 30°1811 ELK RfVER CODE
Sabd~v~sio~ II. 1Dimens£ona~ ReguZations
Sec. 30-1311. Principal structures.
Principal structures shall comply with the following dimensional regulations:
Lot
q~z~re-
znents
I-1 ~ t acre
100' width
I-2~ 1 acre
100' width
f>~ B P~ 1¥_~ acres
~ Must hook up to city sewer and water if within the city sewer district.
(Code 1982, § 900.1S(1))
Garage iYf a~imum i¥iaz~mum
Front S~de S~de Rear Lot Cover- He~gh~
(~ee~) (~ee~ ) (fee!) (fee~ age (feet9
S~ 25 2~ 40% 45
3~ 25 20 40% 60
35 20 30 40% 45
Sec. 30-1312. Accessory structure setbacks.
Accessory structures shall comply with the following dimensional reg-ulations:
'Front Set- Side Set- Rear Set- JYfa.zDn~tm
back back back Height ' Fences
District (feet) (feet) (feet) (feet) (feet)
I-1 30 t0 10 40 0
I-2 30 10 10 60 0
(Code 1982, § 900.15(2~)
Secs. 30-1313--30-1561. Reserved.
Agricultural
Buildirtgs
(feet)
DrVISION 9. OTHER NONO~ERLAY
DISTRICTS
Subdivision f. fn GeneraZ
Sec. 30-1562. A-1 agricultural conservation
district.
(ai Purpose. The agricultural conservation dis-
trict is established for the purpose of preserving,
promoting, maintaiaing~ and enhancing the use of
land for commercial a~icultural purposes, to pre-
vent scattered and leap-frog nonfarm ~o-rowth, and
to protect expenditures for such public services as
roads and road maintenance, and police and fire
protection.
'(b) Permitted uses. Permitted uses in the A-1
district are as follows:
(1) A~micultural uses (five-acre minimum tot
size).
(2) Public parks, playgrounds and open space.
(3) Facilities for flood and erosion control.
/4/ Horticultural uses.
(5) Golf courses and counm! clubs.
(6)' Single-family dwellings.
(7) Model homes in compliance with section
30-800.
(8) Licensed day care facilities for 12 or fewer
children.
Supp No. 2 CD30!!42
Design c Construction, Construction Management
.]anuar¥ 14, 2004
[firs. Catherine Mehelich
Director of Economic Development
City of_~lk River
13065 Orono ?arkway
Dk Fiver, Minnesota 55330
P,e' Gradient Technology Proposal
Dear Catherine:
We are pleased b3 learn of Gradient Technoloav's proposed facility plans. We
have prepared a site plan indicatina !.5 acres of prime prope~y a'¢ailabl~ for
~heir proposal.
The proposed purchase price, which is also the current listing price, is $!.25
per square foot, plus $.36 in special assessments. Thus, the property price is
as follows;
Wi~h ~he ~cal o~ achieving a l~nd cos~ fo~ Gradient T~nolo~y of one dollar
bot~ ~m~on ~onstruct~o~ Qom~ny o~ the land ~a~nersh~ will consider
.... a~ Finanmng (TP~F) note for ~mbursement of the
land ~ost. With this ty~e of transaction we can also ~o~ose, under a
contract, to delive~ the f~dlity "key" ready to G~adient T~chnology.
square foo~.
Technology and would emphes~s the built-in value of ~he
Sincerely,
Amcon Construction Compan'y
Kevin G. I,~aas
Director of Sales ane' !¥1arketing
- "2UL*'~'~'~' 'mwy i3 · Burnsville, Minnesola 55SS7
Phone: 952-890-1217 - FAX: 952-890-0064
4.9 ac,
6.4 ac.
4.1 ac.
4,4 ac.
200'
3.0 ac.
4646 --'~
CITY OF ELK RIVER
TAX REBATE FINANCING PROJECTION WORKSHEET
Project Name: Gradient Technology Expansion/Relocation
TRF Project: 13,000-sq.ft. light manufacturing facility, located on 1.5-acres
Assumption: Projection is based on estimated payable 2004 tax rates and estimated project market value.
The Project will be assessed upon actual tax rates and market value in the year following construction.
State Class Rate
Up to $150,000
Over $150,000
Tax Capacity Rate
City Portion
County Portion
School District Portion
State Portion
Other Jurisdictions*
Total Tax Capacity Rate
0.015
0.020
0.43734
O.44363
0.32709
0.54447
0.03559
1.78812
Land Value ,:::, ?; :
Building Value
Total Assessed Ma rket Value $ 0001:0O
MAX Years of TRF Project
Property's Total Tax Capacity $ 19,250.00
ASSUMPTIONS
Pay 2004
Pay 2004
Pay 2004 Est.
Pay 2004 Est.
Pay 2004 Est.
Pay 2004 Est.
Pay 2004 Est.
Pay 2004 Est.
City Portion $ 8,418.80
County Portion $ 8,539.88
School District Portion $ 6,296.48
State Portion $ 10,481.05
Other Jurisdictions $ 685.11
Total Estimated Real Estate Taxes $ 34,421.31
$52,598.50
Land Cost = 1.61/sf
*Amount of abatement will vaN depending on market vatue, tax rates, class rates, construction schedule and inflation on MV.
*includes City HRA, City EDA, County HRA, County RaiI Authority
*Does not include Market Value School Excess Levy Referendum 2003 rate of 0.07597%
FILE:gradtechTRF.xls 1/22/2004