6.0. EDSR 12-08-1997 APPLICATION FOR TAX INCREMENT FINANCING
CITY OF ELK RIVER, MINNESOTA
• APPLICANT
Business Name: MORRELL TRANSFER INC. / MORRELL & MORRELL INC.
Address: _ 809 JACKSON AVE. ELK RIVER, YN. 55330
Telephone: 441-2011 441-9151
Officers: Larry V. Morrell
Arlyce Morrell
Terry Morrell
Contact Person:
Title: MGR.
Corporation
Business Form (Corporation, Partnership, Etc.):
Years In Operation: 35 + Years
11111 Sales/Revenues: $ 6 5million +
Brief Desraiiipoonr Riuoniness, Principal Products, etc:
Has applicant ever filed for bankruptcy? Yes No x
If yes, provide details on separate page(s).
Has applicant ever defaulted on any bond or mortgage
commitment? Yes No
If yes, provide details on separate page(s).
Does applicant have commitments for conventional financing for
the project? Yes x No
Please list three financing references:
(Name/Address/Contact/Phone)
Bank of Elk River 630 Main St. Elk River, MN. 55330
1ST National Bank 723 Main ST. Elk River, MN. 55330
Twin City Mack 2195 W. County Rd C St Paul, MN. 55164
1111 Name and Address of applicant's legal counsel and accountant:
CK & Co 6800 FraarA—Ave S- Minneapolis, MN
•
PROPOSED PROJECT
Describe Project: Transportation facility
• Office, Maintance, Distribution center
Location: 171st Ave. Elk River, MN.
Site Plan Attached: Yes x No
Type of Project:
Commercial x Industrial Residential
New Construction x Expansion Rehab
JOB CREATION
Current Number of Employees: 108
Current Payroll: 130,272.23 bi weekly
Number of Jobs Created: 15%
Number of Jobs Retained: all
Revised Payroll: 18% increase
PROJECT COSTS
/610, 671-0
Land Acquisition: $
Site Development: $ 35O GOO - bU .
Construction: $ /_ SO. OC2. 00
Machinery & Equipment: $ / S o,'COO •
Architectural and
Engineering Fees $ --�
Legal Fees $
Interest During Const. $
Debt Service Reserve $
Contingencies $
TOTAL $
SOURCE OF FINANCING 3 SO/ OC) (:) - 6 b
Conventional Loan $ / 950 air°
Equity $ j ®o, o00
SBA Loan $
Revenue Bond $
Tax Increment Financing $ 3 0 0, azo
Grant(s) $
Other $
TOTAL $ 2� 35v, v av , as
CONSTRUCTION AND DESIGN
Name and address of architect, engineer and contractor for project:
Christian / Kinghorn
21000 Rogers Dr.
Rogers, MN. 55374
Target Dates:
Start of Construction: March '98
Construction Completed July '98
Finished Market Value of Project: $ 2.5 million
STATEMENT OF PUBLIC PURPOSE
Describe why the proposed development or redevelopment would not
reasonably be expected to occur solely through private investment
within the foreseeable future and therefore the use of Tax Increment
Financing is deemed necessary:
See attached letter
•
The undersigned, (a) (the)
of applicant, hereby represents and warrants to the City that (he) (she) has
carefully reviewed this application, and that the statements and information
contained herein and submitted herewith are accurate and c mplete to the
best of the undersigned's knowledge and belief.
Dated: i `f q1
Applicant
By 1 iILAo 2OA-'
Its U1'1 2
The City reserves the right to require additional information and supporting
data from the applicant after the filing of this Application.
110
PLEASE ATTACH:
–.tSite P ant with Submittal Requirements of the Building and Zoning
• epartment.
cp(dCrt2. Audited Financial Statements or Tax Returns from the Past Two Years.
3. Current Financial Statement
�pa�k 4. 3-Year Pro Forma Analysis
�. Other Information Related to the Project
Application Fee pa -J55 27-75,9
r v' 3 h( per=t C.Li l
6/ 606 Oc1111 _ ''
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'RANFER, INC.
809 JACKSON AVENUE• ELK RIVER, MINNESOTA 55330
NOV. 3, 1997
TO:EDA/CITY OF ELK RIVER
FROM:MORRELL COMPANIES
RE: TIF APPLICATION
THE ISSUE THAT MORRELL COMPANIES WOULD LIKE TO BRING BEFORE THE EDA
BOARD IS THE CHALLENGE OUR COMPANIES HAVE BEEN PRESENTED WITH IN TRYING TO
BUILD A NEW FACILITY. THE SITE THAT WE HAVE SUBMITTED TO THE CITY AND HAVE
RECEIVED APPROVAL ON HAS MANY SOIL PROBLEMS.OUR COMPANIES LOYALTY TO ELK
RIVER IS BECOMING A DECISION OF ECONOMICS. THE OPTIONS ARE LIMITED FOR SITES
THAT WILL WORK FOR A COMPANY OF OUR SIZE. OUR COMPANY EMPLOYS 110 FULL
• TIME AND PART TIME EMPLOYEES AND THE TRANSPORTATION BUSINESS REQUIRES A
LARGE AREA TO MANEUVER OUR COMPANY HAS GROWN SIGNIFICANTLY IN THE LAST 5
YEARS AND WITH THE EXTENSIVE INTERNAL STRUCTURING AND OWNERSHIP
TRANSITION IN THE NEAR FUTURE WE ANTICIPATED EVEN MORE GROWTH.
THE REQUEST THAT WE ARE ASKING OF THE EDA BOARD IS THAT THEY WOULD BE
ABLE TO CLEARLY GIVE MORRELL COMPANIES INDICATORS THAT THE EDA WOULD BE
IN FAVOR OF THIS PROJECT RECEIVING TIF ASSISTANCE. THE NEXT REQUEST THAT WE
WOULD LIKE THE EDA TO DISCUSS WITH OR ADVISE US ON IS HOW DOES TIF ASSISTANCE
ON THIS PROJECT IMPACT THE PRESENT APPROVED SITE PLAN? THE BASIS FOR THIS
REQUEST IS THE SOIL CORRECTIONS. ADDITIONAL SITE IMPROVEMENTS WOULD
NULLIFY THE TIF ASSISTANCE THAT IS TO BE USED FOR THE SOIL CORRECTIONS. THE
ESTIMATED COST OF EXCAVATING THIS SITE HAS BEEN PROJECTED TO BE IN EXCESS OF
3 TIMES GREATER THAN A SITE THAT POSSIBLY COULD BE USED.I WE FEEL STRONGLY
THAT THIS IS A WIN/WIN SOLUTION TO A LONG AWAITED PROBLEM OF RELOCATING
AND VACATING PRESENT SITE. WE THANK YOU FOR YOUR TIME AND ATTENTION
CONCERNING THIS ISSUE.
SINCERELY,
61/1V.Q.s.
TERRY S.MORRELL
612-441-2011 DIRECT- DAILY-SERVICE 612-441-3395
•
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ORRELLzi
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RAvcr&R, INC.
809 JACKSON AVENUE•ELK RIVER, MINNESOTA 55330
TO:CITY OF ELK RIVER 9/08/97
RE:ADDITIONAL COSTS INCURRED IN BUILDING IN ELK RIVER
SITE RELATED- "THIS IS THE ONLY SITE AVAILABLE FOR MORRELL IN ELK RIVER."
A).EXCAVATION-THE ADDITIONAL COSTS FOR SITE PREPARATION BECAUSE OF
THE WETLAND ISSUES AND POND REQUIREMENTS. 180,000
B).SITE PLAN 10,000
C).SOIL TESTING 5,00
411 D).PAVING REQUIREMENTS(7 ACRES) 122,000
E).CONCRETE CURB AND GUTTER(ENTIRE PERIMETER) 13,000
F).CONCRETE DOLLY PADS(DUE TO PAVING) 50,000
*$380,000
*THE ADDITIONAL COSTS INCURRED NEEDED TO BUILD IN ELK RIVER WILL KEEP
MORRELL COMPANY'S FROM VACATING THE PRESENT SITE.THE ADDITIONAL
COSTS WILL FORCE US TO LOOK FOR ALTERNATIVES THAT WILL PROVIDE PARTIAL
HOUSING TO FULFILL OUR IMMEDIATELY NEEDS,WHICH WILL ALSO DELAY OR
POSSIBLY END OUR NEED TO BUILD.
:.4,
0
Adf �t ir �, ,
gliirLARRY V.MORRELL TODD A. ORRELL TERRY 8.MORRELL A. 0 LL
•
612-441-2011 DIRECT-DAILY-SERVICE 612-441-3395
3-
• THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AND
THE ELK RIVER CITY COUNCIL
FOR THE
ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 18 (Morrell)
(an economic development district)
Schedule
December 8, 1997 EDA requests City Council to call for a public hearing to be
held on April 6, 1998 to establish Tax Increment Financing
District No. 18.
December 15, 1997 City Council calls for a public hearing to be held on April
6, 1998 to establish Tax Increment Financing District No.
18.
February 2, 1998 Complete Plan.
February 9, 1998 EDA approves Plan. (Alternate: Mar. 9, 1998)
February 24, 1998 Planning Commission reviews Plan for compliance with
the comprehensive plan. (Alternate: Mar. 24, 1998)
41) March 2, 19988 Plan forwarded to School District and County Board(at
least 30 days prior to public hearing)
March 18, 1998 Send public hearing notice and map to local paper
March 25, 1998 Date of publication of hearing notice and map (at least 10
days but not more than 30 days prior to public hearing)
April 6, 1998 City Council holds public hearing on the establishment of
Tax Increment Financing District No. 18 and passes
resolution approving Plan.
April 7, 1998 Send Plan to County/State for certification
TI18sch
•