5.1. EDSR 08-09-2004 ITEM # 5.1.
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City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
Catherine Mehelich, Director of Economic Development
DATE: August 9, 2004
SUBJECT: Gradient Technology & Orluck Industries Project Update
Gradient Technology
Background
On July 7, 2004,Badger Ventures,LLC began constructing a 13,000 square foot light
industrial/business park building on a 2.05-acre lot in Elk River Business Park. The building
• will be leased to Gradient Technology who demilitarizes munitions for various branches of
the military. The building will be used for the company's office,research& development,
and equipment fabrication operation.
In June 2004,the City and Sherburne County approved Badger Ventures'request for Tax
Abatement (Tax Rebate Financing) to write down the land acquisition. In addition, the
EDA provided Badger Ventures with a$100,000 Industrial Incentive Program Micro Loan
to assist in financing construction costs.
The company currently employs 13 full-time staff,including 7 based in Blaine,Minnesota
and 6 in Indiana and elsewhere. The positions have a wage range of$16-$75.00 per hour.
The company anticipates creating up to 5 new full-time jobs in Elk River with estimated
wages ranging from$10-$75.00 within 2-years.
Project Status
According to Gradient Technology CFO Eric Haehn, the construction is on schedule. The
company anticipates occupancy in November/December this year.
Orluck Industries
Background
In March 2004 the City approved Orluck,LLC's request for the purchase of the city-owned
2.97-acre lot located at Joplin Street and Business Center Drive. Sherburne County
• participated with the City to approve Tax Abatement (Tax Rebate Financing) to write down
the land acquisition.
Gradient Technology&Orluck Industries Project Update
August 9,2004
Page 2 of 2
• Orluck Industries, Inc. will occupy half of the 20,000-square foot facility for its precision
machining operation. The balance of the space will be leased to other eligible business park
uses. The Orluck Industries currently employs 13 full-time and 3 part-time staff at wages
between $15-22.00 per hour at its Dayton,Minnesota facility.
Project Status
Mark Orluck, the President of Orluck Industries has recently met with staff to review a
preliminary site plan. The site plan includes room for up to a 15,500-square foot future
expansion to the initial building. The exterior of the building will be constructed with rock-
faced concrete block and glass materials. Staff anticipates that construction will commence
in September, for occupancy by early next year.
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