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3.0. EDSR 05-13-1996 iv ty of MEMORANDUM 1t( TO: River Economic Development Authority FROM: Pat Klaers, City Ad • istrator DATE: May 13, 1996 SUBJECT: Worksession Meeting A special meeting of the EDA is scheduled for 5:15 p.m. on 5/13/96 in the Training Room. The purpose of the special meeting is to discuss a couple of development prospects. The first prospect is Med Link Medical, Inc., a small company that is located in the Columbia Heights business incubator. This company is looking to relocate out of the Columbia Heights site sometime in late summer or early fall. Harlan has suggested that a number of EDA representatives and staff meet with this firm to discuss the Elk River opportunities and programs. A 7:30 a.m. meeting is suggested so that Med Link Medical, Inc. • representatives could visit some buildings if any are appropriate or available. Much of the meeting may relate to the financial role that the city can play with the company (i.e. revolving loan, CMIF loan, etc.) and any other type of investment opportunities that there may be from the community into the company. The Scott Abernethy client has been discussed with the EDA at a number of meetings and correspondence regarding this prospect has been previously distributed. Attached for your consideration and review is my most recent letter to Mr. Abernethy in response to his most recent letters to the city. The Abernethy letters are also attached for your review. The final attachment on this issue is my letter to Mr. Wilson regarding a Business Park zoning district assessment agreement which will eventually need to be put together and approved by the city. The Scott Abernethy response from the city reviews electric and water quality and the city TIF policy. The final worksession topic is the Gagne property north of Sandpiper Estates, east of the Government Center, and west of the existing Business Park. The city has requested a purchase option for 30 days from Mr. Gagne to work out the details of a possible acquisition and public improvement project. The 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 • reason the city has requested this purchase option is so that we can be assured that if things do not work out with TL Feeding and the existing Business Park owners, we will have a site available for this company. Additionally, another new possibility is the relocation of E & 0 Tool out of the Industrial Park to the Gagne property. At this time we understand that E & 0 Tool is looking to expand and that their preferred option is to construct new and relocate in the Business Park. One of the benefits for the city to move forward with this proposal if we can get a commitment out of E & 0 Tool, is that Mr. Gagne would then also deed the city a 48 acre parcel of property north of Highway 10, north of the Elk River that is mostly in the flood plain. As the EDA or City Council may recall, this property was once looked at as the Waco bridge area in our long range transportation plan. Regardless that the bridge is now proposed to be at Zebulon, this Waco property is very well suited for park development. ` �er_,� MED LINK MEDICAL INC • 3989 Central Avenue N.E.♦ Columbia Heights♦ Minnesota♦55421 G S.r 1-800-762-7921 ♦612-781-6943 ♦FAX:612-781-7286 • \O' April 26, 1996 Pat Klaers, Executive Director EDA of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 Dear Mr. Klaers: Harlan Jacobs indicated that your community may have a facility consisting of office, production, and warehouse space that may be suitable for growing companies such as ours. We are a woman owned, highly technical, medical manufacturing and sales company. As a growing company we would be an asset to the right community. We job shop many of our 1,000 and some parts. We could offer employment opportunities within our company as well as growth ira potential for machine shops and ecetera. We are interested in exploring a possible relocation to Elk River. It would be greatly appreciated if you coordinate a time that you and the key members of your task force would be willing to visit us at our present facility in Columbia Heights, MN.. I will call you next week to arrange a time that is convenient for all. ,, Sincerely, Lynn C. Kellen President/CEO Med Link Medical, Inc. LCK/rmb ,. ,. •,. . . . .,..,. . ,,,' .... (....) - , .' -o'''•.''d4;,. . -,....._ . . ., __..„.„.. „......,„:„... • ,......,..,„..i., ,...,.„...., .. . . ,,,, • , J -s.§:-Iic..::.--.7, . ,f,,.-_-.4--, • ''-' '' , . •-''------z` -.-"CiA -,,-;•' • CI ' / .., 7•',.*,• .:.w•- P . -47..-•,, I/ :!.• --- i ' • 4,-', .-?:4:-•- , / \( :\-- \••;,,,-- „: - - t., ,.. ._ -• .,-- _,.....--- , . ,--„- . ,........ , • , ) , ..-.. . , . v / 1 i ,.. r ( • '• . . , . K--.40 - .i.i... .. — .., ...___ , . eh" ...-,.• ' - 2° IS lL - ; ".",- M•; ' 7. .1; ... . , g'•••_..:7., ::..,..--•.*.„,„4.„ ' .-7:4---.----- r . .-- -.z ...." ,-- - - .. '.,. 110!:;C-4,--'''•-,,.;;-,7'.t-Z.,?....,,,,c.,,...-,-..:. ",,:',;,: i . I. ' ''.'''''''.'=17:;•,:;---'4i'.*:-1 .=,t4=Tirl:-., :2•':..1,1'a-.-74,X47,,,,,W.n.•-•.'44.4:M::: . •.,- .-•--- • . ._ 1 IVIED LIMON.I ,.. RECONSTRUCTIVE MICROSCOPE _ . DZI 811 DUAL ZOOM RECONSTRUCTIVE MICROSCOPE IMEO LINK RECONSTRUCTIVE MICROSCOPE mTheoo ated DZI 877 result in stet with op color,clarity, r of field,higl lotion an ,, C3 101 ot ,t Pi fll • The power control unit... accessible and simple to operate. amp 20"of fingertip DUAL ZOI controlled height 1:t adjustment accommodates ASSIST FINE F0( , V either the ;; sitting or standing TEAMWO F-' surgeon. INDEPENDENT 140° HEAD ROTATI EXCLUSIVE FEATUI f The DZI 811 composts to MOTORI2 i only 64 inchesrsfor stor aGROSS FO(;i> litir, convenience. SSd'r) 11 miff TRUE 4"X 12") L, f`, LARGEST AMOUNT OF TRA) UNLIMITED FLEXIBILI 9 1 r- 1.... STATE OF THE G OPTICAL SYST The DZI 811 Speed controls UNSURPASS for X-Y,focus and zoom OPTIMAL ILLUMINATI' facilitates precise, adjustable control of x THE DZI 8 all microscope functions. ill • Detiftpoitel e iittet i Dual-foot controls provide precise control for surgeon and assistant The dual microscope travels 140°Independent Head Rotation True 4"x 12"X-Y The DZI 811 movement has has independent more travel range magnification and than all other X-Y's ._, assistant-controlled I available and provides x a _ /" fine focus for complete hands-free, f optimum teamwork. precise movement ► 7:11 of the microscope. '--A '., - - 1 - 1 wk A ../0) „or 11 101° H i ter. _-... , Med Link DZ! 811 Reconstructive Microscope Vertical Tilt Twin fiberoptics •Dual Zoom and independently-controlled assist fine focus enhances the quality delivers optimal illumination, of teamwork between the surgeon and assistant.Each user can independently choose , decreases reflections and the magnification for a wider,all inclusive view. results in a bright, shadow-free field. • Independent 140° head rotation with inclinable binoculars is an exclusive ± ' feature available only on the DZI 811.Many of today's microsurgical procedures make beingforced into workingdirectlyacross from one another undesirable. Med Link's exclusive head rotation frees the surgeon and assistant to work either side by side, 90° apart or at any other convenient point within 180°. •Mo d column control allows 20"of fingertip-controlled travel for speedily achielss focus. Horizontal Tilt • True 4" x 12" X-Y movement is the largest amount of travel available Vertical and today.Med Link offers a true X Y movement along a singular plane,nota pendulum II horizontal tilt for the ease movement which tilts the microscope and can effect the focus. The X Y is repositioned I of positioning necessary for entirely hands free by the full-function foot control and includes a self-centering feature. t your specialty. •Horizontal and vertical tilt permits the microscope heads unlimited flexibility of '-�. k positioning at the various angles generated by today's complex microsurgical procedures. /03 , •Hands-free control,3"of fine focus with self-centering for ease and convenience. ,,40, •Microsurgeon have declared this state of the art,computer designed,multicoat- ed, ulticoated, high-resolution optical system provides unsurpassed depth of field, clarity, stereopsis and the field width necessary for your speciality. •Speed controls for kV, focus and zoom facilitate precise, adjustable control of all Heads rotate 140°for viewing in various angles microscope function. \ Independent 140° head rotation with •Twin fiberoptics deliver optimal illumination,decreases reflections and results in a inclinable binoculars bright,shadow-free field. is available�iy f on the DZI 811. • The 35mm and video systems on the DZI 811 operate with independent zoom f - controls and since they require no beamsplitter, there is no loss of illumination to 1 -'► either summon. usio, ,..-. •c • SPECIFICATIONS Med Link DI!811 Surgical Microscope Eyepieces 10X Wide field high point, 15X—20X Wide field Binoculars Inclinable 90° • P.D.adjustment Optics Computer designed,Multilayer coatings High-Resolution Carrier Manual horizontal and vertical tilt 140° Independent Head Rotation Fine Focus Motorized;3"+self center;speed control Independent assistant focus Zoom Motorized; 1:5 ratio;speed control Illumination High intensity dual beam fiber optic 12V 100W Halogen X-Y Transfer Arm Motorized;4"x 12"planar travel; Self center;speed control Column 500mm(20")motorized travel; handswitch control Documentation Video and 35mm adaptation and complete line of • cameras and accessories available WD 225mm Eyepiece Zoom Field 10X 3.5X—18X 70mm—14mm 15X 5.25X—27X 53mm—11 mm 20X 7X—36X 35mm—7mm (Numbers rounded off) Med Link Medical, Inc. Med Link Medical,Inc. 3989 Central Avenue Northeast Columbia Heights, MN 55421 PRO MY MADE IN THE USA ©1993,Med link Medical,Inc. Subject to change. .a�.Ke:.c.+.xlzr9 a:r+�,�.«�v ..w-,i., .; ,f .�.-��� `+x."� .*F,.�.`. >�.*i_::c.. ..r.,Q... 'r#w+x.3,�.,++w1, iss. '+s' .a,..ati;^sf�.r'P,• _.;w'v:.>,4;'_r.*:ti� F. aw K+e < a:a�A a _. .-- / A( ( x ity of lk • River May 8, 1996 Scott Abernethy The Keewaydin Group, Inc. 1922 IDS Center Minneapolis, MN 55402 Dear Mr. Abernethy, The city recently received three pieces of written correspondence from you regarding your polycarbonate optical lens manufacturer client. These three pieces of correspondence related to the water quality at the proposed site, electrical service information based on revised projections, and city economic development incentives to encourage your client to locate in Elk River. • Regarding water quality and supply information, please see the attached material from the city engineer, Terry Maurer. Regarding electric service information, it should be noted that the city electric utility purchases its electric power from Anoka Electric Cooperative (AEC). Part of the Elk River community is serviced directly by AEC and part of the community is serviced by the Elk River Municipal Utilities (ERMU) through its purchase agreement with AEC. The sites that we have reviewed with you for your client are on the Wilson property in the western part of Elk River, generally described as along Waco Street, north of County Road 30 and south of Highway 10. Both AEC and ERMU service part of this area. The exact preferred site for your client in this Wilson property has not been finalized by Mr. Wilson, but it is safe to say that the area that is preferred has moved from the County Road 30/Waco Street intersection north along the east side of Waco Street to the area where the AEC and ERMU boundary line exists. It is approximately 2,680 feet between Highway 10 and County Road 30 along Waco and the boundary split between AEC and ERMU is at mid- point. Please see the attached map for a better understanding of this situation. In light of the information in the above paragraph, the city is comfortable in 11 indicating that it can match the AEC offer for two different rate options as identified in my March 22, 1996, letter to you, and if this cannot be accomplished in the ERMU service territory, then the city will prefer to have 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 your client locate in the AEC service territory that is slightly closer to Highway 10 along Waco Street. The exact costs for ERMU electric service will depend on your client's electric usage pattern. Regarding your request for economic development incentives, as outlined in your April 30, 1996 correspondence, I would like to reiterate that the city is very comfortable using tax increment financing (TIF) and is prepared to use this economic development tool for your client. The city policy regarding tax increment subsidy states that the subsidy shall not exceed 15% of the project's finished market value as determined by the county assessor. As this percentage relates to item number 6 of your 4/30/96 letter, we are therefore talking 15% of 5.25 million dollars or $787,500 to cover items 1,2 and 3 of your letter. Based on estimates for the purchase price of land from Mr. Wilson, the assessments to this parcel for the extension of trunk and lateral utilities, building permit fees, SAC and WAC fees, surface water management expenses, site preparation expenses, etc.; it appears that there should be sufficient TIF funds available to meet the needs of your client for 40 locating in our community. The exact level of assistance cannot be determined until more details are known about your proposal. This project obviously needs EDA review and approval and before approval is given, much more information is needed about your client - the livable wages paid to the employees, the type of structure your client is planning to construct, etc. All of this exchange of information and discussions can take place simultaneously while the items listed in number 7 of your 4/30/96 letter are being reviewed by the Planning Commission and City Council. Above and beyond the high quality electric and water supply and all of the economic development incentives that are available in Elk River, I would like to again state that I believe Elk River would be an excellent community for your client and your client's employees. The city's low tax rate, quality of life, available housing stock, commercial base, park and recreation opportunities, high quality school system, and overall location along Highway 10 in the northwest fringe of the metropolitan area are very positive factors that help support Elk River's position as being the best community for your client. The City of Elk River appreciates your continued consideration of our community for your client and we look forward to further discussing this project with you. If there is additional information we can provide you, please feel free to contact me. Very truly yours, wAdp eg-e44-- • Patrick D. Klaers City Administrator �_ . W Oa0�N0� 2 o i / i!Irol ✓ ,, \:\ . 6 1 ... r II or a3AN3O .a= • ♦ b " iii\.\ um g ir NNW\ - 11 . Y'fNIoNs3a� i , Ik\\ 111, ; I irilt :111:1741 ,11179.! 'owl: Ili1:147,4 ,1711,q1111 ,�avO ir � r wir7ri,. dr sAli o' ion p o �� ilia • zir minium Ilk �c ♦ mom NosanH c i *WOG b AIL : OA: iiii.s...,..., r ria :II mi MOOR IIIIMIL a imam .`1 ...- D(6 Ilk ''` �k• 1' .2 Eh EN NOINOSI NIIdOP I 111•111111111F 1: 1 „�LIIIIIO`-amt 1l, r Dirlb ft � DON (a - . ' Iroil IV . I IIP Iliiri °-. r' '''..'• 1 MILAN illriiiiiiiiiggl Noovn Mr:`` , H 11;1911111;.. .f MI !rJ;J;Ly$, II 1,,,,,,r LIM k I MIL IIIM�111/N N3Q90 i ' 1► L r I• • 1►n. nil 1.1111111171117 j . § z o i;'i .It IU N33110 i /�/� a ! ! Mr • (CC j •1!1ij I S it , __ 1 1�LS AMUii 3 VOWS 1 •■ i (00•.iilh Iii U ( i\tialloill,1;111 ' ! ' t.-.'"i V ■ ```` AQ2L h /if:// 0 NMNn (oo 111U! Uu VIa01�tA - .:,.%, irr _ I 0 , 6 (\ ;°%' U (ooz ri � � �2 106::4 _._ 2___ , ° t IT 00VM s3xa3x (oos , ..!fi ...„0.,4 dr ...... ii.Ab ; -=�`\4amilikc • .� NOlHNv�l _ Noine3z S to- o m43 CONSULTING ENGINEERS May 9, 1996 1326 Energy Park Drive File: 230-000-00 St.Paul,MN 55108 612-644-4389 Mr. Scott Abernethy 1-800-888-2923 Keewaydin Group, Inc. Fax:612.644.9446 1922 IDS Center Minneapolis, MN 55402 RE: ELK RIVER WATER SYSTEM Dear Mr. Abernethy: In response to your memorandum dated May 7, 1996, I have accumulated information regarding the Elk River water system. Your memorandum asked seven questions. The answers to these are as follows: CVL ENGINEERING ENVIRONMENTAL 1. Size of water line? MUNICIPAL •PLANNING There are no water lines currently constructed in the extreme Western Area of Elk SOLID WASTE River. The design calls for a main trunk line centered between County Road 30 STRUCTURAL and TH 10, which would be 12" to 16" diameter, and then a loop back along the SURVEYING Trunk Highway 10 frontage with a slightly smaller watermain, which would be 10" TRAFFIC to 12" diameter. TRANSPORTATION 2. Is the water line looped? ELECTRICAL/MECHANICAL ENGINEERING: Yes, the design of the future system calls for all watermain in the Western Area S RBUTION to be looped. ;:DA SYSTEM CONTROLS 3. Water supply storage capacity? The City has two 1,000,000 gallon storage tanks in the water system which would serve the Western Area. One is located near TH 10 on Gary Street in the Western Area. The other is located along TH 169 north of School Street. The water system also has four wells, two which were built within the last four years with a pumping capacity of 1,000 gallons per minute each, and two older wells, one located along Highway 10 near the Chamber of Commerce Building and the other on the Cretex property. These have a capacity of 650 gallons per minute and 800 OFFICES IN: gallons per minute. • MINNEAPOLIS PRIOR LAKE ST.PAUL WASECA An Equal Opportunity Employer Mr. Scott Abernethy • May 9, 1996 Page Two 4. As a percentage of storage capacity, what is the average level maintained? The two 1,000,000 gallon water towers have a design depth of 40 feet for water storage. The one located in the Western Area currently fluctuates between 39 and 40 feet. However, this area does not have a very high water demand at this time. To give you an idea of how it may fluctuate in the future, the tower located along TH 169 has a fluctuation of approximately four or five feet. 5. Gallons per minute? The design of the water distribution system in the Western Area of Elk River will have a minimum delivery rate of 3,500 gallons per minute. It is possible that this delivery rate could be even higher. 6. Static psi? The static pressure predicted for the Western Area is in the low 50's, approximately 53 to 55 psi. 7. Residual psi? The answer to question 5 regarding delivery rate of 3,500 gallons per minute assumes a minimum residual pressure of 20 psi. I hope this provides adequate information about the water system in the City of Elk River. Should you have any other questions or need further clarification of any of this information, please call. Sincerely, MSA, CONSULTING ENGINEERS • C/-_ ' Terry J.-Maurer, P.E. TJM:tw cc: Mr. Pat Klaers, City of Elk River 000-0607.may { 'ity of r. lk River May 9, 1996 Mr. Stewart Wilson P.O. Box 277 Elk River, Minnesota 55330 Dear Stewart: Attached for your review is a letter to Mr. Scott Abernethy regarding his client that we hope will locate in the City of Elk River. As we have discussed and as Mr. Abernethy has discussed with you, the preferred location for this client in Elk River is on the Wilson family property between County Road 30 and Highway 10 east of Waco Street. • One of the concerns related to this request is the assessments of trunk sewer and water to the balance of the Wilson family property. If this client were to locate along Waco Street, and if this trunk improvement project was to be constructed, then the city and the Wilson family will have to enter into some type of assessment agreement for the property that is in the Business Park zone. As a city, we do not want to force assessments upon this area of the city and prematurely force development that does not meet the Business Park standards or be requested to consider having the property removed from the Business Park zone. This area is viewed as the long term employment and tax base future of the community and we need to work together to make this happen. As you know, with the second phase of the Elk River Industrial Park that was owned by the Elk River Associated Investors, Inc., the city installed the trunk sewer and water and constructed the street in 1987, and did not assess the benefited property owners at the time of construction. Rather, the city obtained $5,000 per acre from the Elk River Associated Investors when the property was sold. Eventually, the city actually purchased the remaining lots in the Industrial Park from the Associated Investors and, in effect, became owners of the Industrial Park. While at this time no one envisions the city • owning property that is currently owned by the Wilson family, we do, as a city, envision some type of relationship with the Wilson family similar to 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 what existing with the Elk River Associated Investors with the second phase • of the Industrial Park. It is very possible that the Scott Abernethy client will locate in another community and not in Elk River. Nonetheless, we do need to begin thinking about the trunk assessment issue and, ultimately, a plat or subdivision and street design scheme for your property that is in the Business Park zone. If the Scott Abernethy client does not happen, we are sure to see other prospects in the near future evaluating your property. In this regard, the city is planning to authorize the Western Area Phase III feasibility study for trunk utilities in order to help ascertain the costs and benefits for extending the trunk utilities to the western part of the city. I hope the above information gives you some sense of security that the city is willing to work with you in the development of the Business Park and that we are ready to move forward with our planning efforts. If you have any questions or concerns regarding the content of this letter or the Scott Abernethy letter, please feel free to contact me. Vtruly yours, e , e4e•IP 1 -.-- • Patrick D. Klaers City Administrator PDK:akh cc: Mayor Hank Duitsman Jeff Gongoll 0 t4. m. 1 • E KEEWAYDIN GROUP. . . Real Estate Advisors to Business April 30, 1996 Mr. Patrick D. Klaers City Administrator City of Elk River P.O. Box 490 13065 Orono Parkway Elk River, MN 55330 RE: Polycarbonate Lens Manufacturer Dear Mr. Klaers: We represent a Polycarbonate manufacturer of prescription lenses and have been commissioned to seek out a site location within the conterminous United States and develop a new manufacturing/distribution facility. • The primary consideration for location of this facility will be the "cost of doing business". Costs are measured on a net present value basis and consist of all costs/fees associated with development of the facility plus recurrent costs. Final locations under consideration consist of; Tarboro,North Carolina, Cedar Falls, Iowa, Rogers, Minnesota, Elk River, Minnesota and Ramsey, Minnesota. The initial building will be approximately 159,000 square feet in size which consists of warehouse/manufacturing and office areas with 139,000 and 20,000 square feet respectively. The final site selected must provide for expansion •f the facility up to a total of 270,000 square feet. This building will be insured by Factory Mutual as a "HPR" (highly protected risk)type facility and most probably will have an ESFR(early suppr-ssion, fast response)type fire protection system in the warehouse portion of the building. :ased on this, adequacy of water supply and system reliability will be a critical issue in the fin.1 selection of a site. We anticipate that the exterior of the facility will b- constructed of"High Tech" architectural metal sandwich panel with an eave height of appm imately 23' 0". The office portion of the building will be an appendage to the warehouse/m, ufacturing area but with a lower eave height. • 1922 IDS Center 80 South Eighth Street Minneapolis,MN 55402 612-341-4422 Fax.612-349-6439 4110 Mr. Patrick Klaers April 30, 1996 Page 2 Milestones for construction of the new facility are as follows: October, 1996 - Start Construction April, 1997 - Start Installation of Manufacturing Equipment July, 1997 - Substantial Completion of the Building July, 1997 - Commence employee hiring and training April, 1998 -Fully Operational When the facility is fully operational in 1998 current projections suggest that total employment may reach a level between 200 to 250. If business conditions continue to be favorable and growth projections are realized the employee population could possibly grow to the 300 to 350 level in 2001. Because of the precision required in the manufacturing of optical lenses access to a"skilled" labor pool will be a consideration. Lens production is continuous and the facility will run twenty four hours per day with three shifts, seven days per week. The manufacturing process consumes a relatively large amount of electrical power and as such reliability and cost of service will be a decisive issue. Given the magnitude of investment associated with the development of this project we seek the following economic assistance and development agreement conditions: 1. Deed title to a 14.6 acre building site at the intersection of County Road 30 and Waco Street(see enclosed site plan)which will accommodate the initial construction and a warranty that no fees, assessments, permit costs and/or special charges will ever be levied against the property or the project. 2. Reimburse developer for all costs (hard and soft) associated with the development of the site and preparation of a building pad upon substantial completion of the facility. These 1111 costs are estimated to range between$2.50 and$3.50 per square foot of building. i Mr. Patrick Klaers April 30, 1996 Page 3 3. Provide option to purchase agreement for expansion land(approximately four plus acres) • for a period of five years from the date of the development agreement with the same conditions as items 1 and 2. 4. Provide water supply to the facility with sufficient capacity and pressure for an ESFR Fire Suppression system. 5. Agreement on electrical service rates and conditions. 6. Development agreement with a minimum market value not to exceed 75% of the actual cost of construction(estimated at$7,000,000.00)plus the value of raw land exclusive of special fees and assessments. 7. Agreement on building exterior finish material, site plan and landscaping which shall not be subject to further review or interpretation after execution of the development agreement. But for this assistance the project would not be economically feasible. We look forward to your response. Very/ ly Yours, Or / Scott Abernethy Principal cc: H. Duitsman IP to o el o a u o V, N o cr.• I I I o II [Y C' n I 1 OD 1Q CU O ! 1 1 ; z �--�— i 1 j g el II �_ . CL ` �� riV 1III � . a W l i i 1II - I II ii Q. 1 ) . Z r-. .--. r-• I. l 11 1 1 II IIulLl W I •.:1 1 o 1-1I A! Jot I ONALEICOMI . I I O .• (di rii u� ` ••••=1•••• I — A a 1 ! I I 1 1 G . I Fol 3 I !I I w d I I I i ,) I � I -,1 I ,1 , a 41 1 I J N 1 I � _Nb I , :I I Or Ove I I' et 07� ` i 1 g ‘I.: ; W 1 I I: I I I I I' moo w g ti aQm Ugraog`c �3 0 igi ril . , A05 90011 a SQNI'l RNV AwVq'T I ,TJ.AS O68178CC7.T9 WA 9T:oT gin 96/0C/170 05/07/96 TUE 10:44 FAX 6123496439 KEEL AY'DIN GROUP C2)002 • MEMORANDUM TO: Terry Maurer, City Engineer, City of Elk River FROM: Scott Abernethy, The Keewaydin Group,Inc`1564 RE: Projected Water Supply Characteristic - • • intersection of County Road 30 and Waco Street CC: Pat Klaers, City of Elk River DATE: May 7, 1996 Confirming our telecommunication this date, our client is a Factory Mutual insured and we anticipate they will require an Early Suppression Fast Response(ESFR) fire suppression system for a portion of the building. Therefore,we request the following information for their. evaluation: 1. Size of water line. 2. Is water line looped? 3. Water supply storage capacity. 4. As a percentage of storage capacity,what is the average level maintained? 5. Gallons per minute. 6. Static PSI. 7. Residual PSI. • J.iLs:�,'•-.•�J �;,,1 ' „ 1[X) .St ...Etc Real&tate Solutions fur Business 05/08/96 WED 10:27 FAX 6123496439 KEEWAYDIN GROUP el 002 BCC: B. Arnold, VEL P. Klaers , Elk River_. • G. Eitel, Rogers D. Uhrhammer, AEC THE KEEWAYDIN GROUP. . . Real Estate Advisors to easiness R. Schroeder, Ramsey May 8, 1996 Ms. Patty Neuman Health Care Specialist MN Department of Trade and Economic Development 500 Metro Square 121 7th Place East St. Paul, MN 55101-2146 RE: Employee Availability and Wage Rate Evaluation Dear Ms. Neuman: The client's Human Resource Manager,Jim Brazil,will be evaluating employee availability and wage rates in the candidate sites. We request your assistance in arranging meetings in each city with: • 1. Existing employers,and; 2. others resources knowledgeable about the local employee situation. Secondly, we would like a list of employers in each community that includes the number of employees, company contact and telephone numbers. Mr. Brazil will be available for interviews on May 15, 16 and possibly May 17, 1996. Please call me at your earliest convenience to discuss the schedule. VI Truly Yours, 44, 'Aril' . 40er 7910r Principal JSA/eb cc: J. Brazil, VEL 1922 IDS Center Ro South Eighth Street Minneapolis,MN 55402 612.341-4472 Fax:612.319.6439 We anticipate that the exterior of the facility will be constructed of"High Tech" architectural metal sandwich panel with an eave height of approximately 23'0". The office portion of the building will be an appendage to the warehouse/manufacturing area but with a lower cave height. 1922105 Centtr i South Eighth Silva aacopuli,.MN 5540 2,.,t41.4422 Fac;612..149.647g. v!s O►r -w• ��-�� -.�. ___- _- _.. Ike°• ..i- ill Ms. Patty Neuman May 2, 1996 Page 2 Milestones for construction of the new facility are as follows: October, 1996 -Start Construction April, 1997 • -Start Installation of Manufacturing Equipment • July, 1997 -Substantial Completion of the Building July, 1997 - Commence employee hiring and training April, 1998 - Fully Operational When the facility is fully operational in 1998,current projections suggest that total employment may reach a level between 225 to 250,compared to the current level of 170. If business conditions continue to be favorable and growth projections are realized the employee population could possibly grow to the 325 to 350 level in 2001. Currently the manufacturing wage average is in the high 59.00 range plus a benefit package of approximately 40%. Because of the precision required in the manufacturing of optical lenses,access to a"skilled" labor pool will be a consideration. Lens production is continuous and the facility will run twenty-four hours per day with three shifts, seven days per week. The manufacturing process consumes a relatively large amount of electrical power and as such reliability and cost of service will be a decisive issue. AS we discussed earlier today, we currently have proposals from Iowa and North Carolina for 0 economic assistance and state training aid which are attractive. We think it would be an excellent investment for Minnesota to keep this type of industry and jobs in Minnesota,thus we seek Minnesota's proposal for assistance. We look forward to your response. .t ' • THE KEEWAYDINI GROUP. . . Real Estate Advisors to Business April 29, 1996 Mr. Patrick D. Klaers City Administrator City of Elk River P.O. Box 490 13065 Orono Parkway Elk River, MN 55330 RE: Polycarbonate Optical Lens Manufacturer Dear Mr. Klaers: As a partial response to your letter of March 22, 1996, enclosed is a revised electrical consumption estimate and projection of costs relative to a power interruption. I wish to further the discussion on an electric service agreement based on our revised projection • and reliability of electric service. I will call you later today. Ve Truly Yours, . cott Aberne y Principal Enclosures JSA/eb cc: Mayor Henry Duitsman • 1922 IDS Center 80 South Eighth Street Minneapolis,MN 55402 612-341-4422 Fax 612-349-6439 ELECTRICAL CONSUMPTION ESTIMATE April 29, 1996 . NEW FACILITY EXISTING FACILITY DEMAND USAGE MACHINE DEMAND USAGE MACHINE YEAR MONTH KW KWH TOTAL KW KWH TOTAL 1995 Jan 966 658,222 13 Feb 1,030 622,086 14 Mar 1,035 579,562 15 Apr 1,120 655,234 15 May 1,137 670,682 16 Jun 1,217 776,118 16 Jul 1,315 706,356 16 Aug 1,367 752,520 17 Sep 1,370 812,298 17 Oct 1,351 776,992 18 Nov 1,380 822,170 18 Dec 1,299 873,752 18 1996 Jan 1,480 1,012,640 20 Feb 1,480 888,700 20 Mar 1,380 772,740 20 Apr 1,500 873,640 20 May 1,420 838,360 20 Jun 1,520 970,140 20 Jul 1,640 882,940 20 Aug 1,600 885,320 20 Sep 1,620 955,640 20 Oct 1,500 863,320 20 Nov 1,540 913,520 20 Dec 1,440 970,840 20 1997 Jan 1,480 1,012,640 20 Feb 1,480 888,700 20 Mar 1,380 772,740 20 Apr 1,500 873,640 20 May 1,420 838,360 20 Jun 304 194,028 4 1,520 970,140 20 Jul 328 176,588 4 1,640 882,940 20 Aug 320 177,064 4 1,600 885,320 20 Sep 729 430,038 9 1,134 668,948 14 Oct 675 388,494 9 1,050 604,324 14 Nov 693 411,084 9 1,078 639,464 14 Dec 648 436,878 9 1,008 679,588 14 1998 Jan 1,184 810,112 16 740 506,320 10 Feb 1,184 710,960 16 740 444,350 10 Mar 1,104 618,192 16 690 386,370 10 Apr 1,575 917,322 21 375 218,410 5 May 1,491 880,278 21 355 209,590 5 Jun 1,596 1,018,647 21 380 242,535 5 Jul 2,132 1,147,822 26 Aug 2,080 1,150,916 26 Sep 2,106 1,242,332 26 Oct 1,950 1,122,316 26 Nov 2,002 1,187,576 26 Dec 1,872 1,262,092 26 ELECTRICAL CONSUMPTION ESTIMATE April 29, 1996 • NEW FACILITY EXISTING FACILITY DEMAND USAGE MACHINE DEMAND USAGE MACHINE YEAR MONTH KW KWH TOTAL KW KWH TOTAL 1999 Jan 2,294 1,569,592 31 Feb 2,294 1,377,485 31 Mar 2,139 1,197,747 31 Apr 2,325 1,354,142 31 May 2,201 1,299,458 31 Jun 2,356 1,503,717 31 Jul 2,542 1,368,557 31 Aug 2,480 1,372,246 31 Sep 2,511 1,481,242 31 Oct 2,325 1,338,146 31 Nov 2,387 1,415,956 31 Dec 2,232 1,504,802 31 2000 Jan 2,664 1,822,752 36 Feb 2,664 1,599,660 36 Mar 2,484 1,390,932 36 Apr 2,700 1,572,552 36 May 2,556 1,509,048 36 Jun 2,736 1,746,252 36 Jul 2,952 1,589,292 36 Aug 2,880 1,593,576 36 • Sep 2,916 1,720,152 36 Oct 2,700 1,553,976 36 Nov 2,772 1,644,336 36 Dec 2,592 1,747,512 36 2001 Jan 3,108 2,126,544 42 Feb 3,108 1,866,270 42 Mar 2,898 1,622,754 42 Apr 3,150 1,834,644 42 May 2,982 1,760,556 42 Jun 3,192 2,037,294 42 Jul 3,444 1,854,174 42 Aug 3,360 1,859,172 42 Sep 3,402 2,006,844 42 Oct 3,150 1,812,972 42 Nov 3,234 1,918,392 42 Dec 3,024 2,038,764 42 • O O O O O O O O O O O O O O O O O 0001 N L 0 O O 0 O O O O O O O O O O O O 4n 4n 0 0 0 N 00 M en M M M M M M M en M - - 000000 N t` t`N N N N N N N N N N N N N O N et d DD - �--i 69 N 64 64 64 64 64 64 64 64 64 64 64 64 64 N 00 01 O N � VD 69 69 ..i-- 69 64 .-. • 69 69 69 64 O O O O O O O O O O O O O O 0 0 7 7 41 0 VO N O O O O O O O O O O O O O O I M VO 'r O en N O �--� �O M M M M M M M M en en on .--� 00 'A �--� N - N N N N N N N N N N N N D\t D;O O D\ - •-� 69 N 64 64 64 64 69 64 64 64 64 64 64 69 'O N 00 O N_ en VD 64 64 -- 69 64 444.44.4E" O O O O O O O O O O O O O O O 00 00N en �!- 7 M OOOOOOOOOOOOO - 'i O NM - 00eO O --i vO M M M en en M M M M M •-� �!1 O\ N 7 �--� DD M C t` t` N N N N N N N N N N l� �O l��O et- 69 F r- - �-• 69 N 64 64 64 69 64 64 64 64 64 64 64 \O N 00 01 ,--� M 'r 69 69 69 64 64 - 69 69 64 0 0 0 0 0 0 0 0 0 0 0 O O O 00N N O O M 0 0 0 0 0 0 0 0 0 O O O O - N N N N N un N 0 �--� VO M M M M en M M en M --� N 7 N � � N O - 4 N N N N N N N N N N �O N M 0 N O N 4 bR N 64 69 64 69 69 69 69 69 69 69 �O l4 00 01 �-• M - 69 44 69 69 69 rr r• .-� 64 64 64 00000000000 00 N 'ON eO N l� 00000000000 - 0kr) CD M 'O7 �--� �O M M M en M M M en .-• 01 00 M 00 N VO \O -'-' 64 N 664 68 669 669 64 669 6 48 64 X60 'C 000 C\i O_ N_ �_ 64 64 '- 64 64 64 64 64 64 8 LA 0000000000 OO N 0 �--� •�"' 0 0 0 0 0 0 0 0 0 0 v1 N N 00 00 N 00 00 Q-I O '--� 'O M M en M M M M - 'C en d' N O N U N N -• NNNNNNN 7 64 N 69 64 69 69 64 69 64 69 10 �O l� 00 O_ N_ 64 69 -' 64 64 64 49.49 H 0 0 0 0 0 0 0 0 0 O O 01 d' N N O' .- 0.) 0 0 0 0 0 0 0 0 0 vl V) �p 00 �0 N l� M U ST., \O M M en M M M ,-. 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CityIk of Ri• ver March 22, 1996 j Mr. Scott Abernethy The Keewaydin Group, Inc. 1922 IDS Center Minneapolis, Minnesota 55402 Dear Mr. Abernethy: As a follow up to my March 8, 1996, letter to you and as a follow up to our most recent phone conversations regarding your client, I would like to respectfully offer the following comments. • The Mayor, Utilities President, and I have had a meeting with the Anoka Electric Cooperative General Manager Rick Newland, and Manager Customer Services Division Mike Rajala. As a result of this meeting, Elk River is prepared to offer the identical electrical package that was offered by Anoka Electric Cooperative (AEC). This is consistent with the comment in my March 8 letter whereby the City and Elk River Municipal Utilities (ERMU) believed that it could match the AEC rates identified in its rate book provided that you locate at County Road 30 and Waco Street. As I understand the situation, the rates being offered by AEC which ERMU can match are 4.2G on a straight buy and 4.07 on a five year contract offer. The attempt to offer identical rates for the high quality power in this area is being done in order to help ensure that, if the best site for your client is not in the AEC district, then it is in the City of Elk River regardless of the electrical power rates. Regarding the IRB and DTED loan program mentioned in my 3/8/96 letter, the Finance Director has contacted the state regarding these programs. Unfortunately I have to advise you that all of the Department of Trade and Economic Development loan funds have been spoken for and allocated. • 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 Mr Abernethy Page 2 March 22, 1996 • Additionally,y, all of the State allotment of IRB funds have been dispersed and there are no more funds available for 1996. Regarding other fees that you inquired about in our phone conversations, I would.like to advise you that the City follows the Metropolitan Waste Control Commission (MWCC) standards for sewer availability units and water availability units. The city sewer availability charge (SAC) is $1,300 per unit. The ERMU water availability charge (WAC), some of which is collected at the time of hook up and some of which is collected at the time of building permit issuance, is $1,000 per unit. Using the formula from the MWCC, the 150,000 square foot warehouse, assembly, and office facility would be charged 33.75 units. Using a more liberal interpretation of the facility, which means that we would not strictly follow the formula but would follow an outline for the building according to its planned uses, we arrive at 26.9 units. In your case in Elk River, we would favor a more liberal and flexible approach in determining SAC and WAC units. • Other charges that come to mind regarding this project include the surface water management fee of$741.60 per acre. This is for the trunk storm water system and does not include the on-site ponding or water retention requirements. The trunk sanitary sewer and trunk water expenses are estimated to be $3,800 per acre and this does not include the lateral lines into the building site. There is no estimate being offered for street costs as this facility is assumed to locate along a County Road or a local street that can handle the traffic volumes for this company. Any other streets would be internal to the property. Until we know more about your client and your proposal, the above mentioned expenses are the ones that immediately come to mind. If the project moves forward in the very near future, the City has put together a timetable that ensures that municipal utilities will be available before the end of the year. This is provided that an application for utilities for the public improvements takes place in the near future and that there are no public hearings for assessments involved in this request for sewer and water. The details of the public improvement project still need to be worked out. Additionally, I have received verbal assurances from ERMU that electrical power would be available provided that adequate notice of the construction of the building is offered. • Mr Abernethy Page 3 March 22, 1996 • Thank you for your continued consideration of Elk River as a location for your client. I hope to have the opportunity to further discuss our community with you. Very truly yours, Patrick D. Klaers City Administrator PDK:akh cc: Mayor Henry Duitsman Utilities President James Tralle • • • el Gagne Property - Finances It is difficult for the city to move too quickly with this project without firm commitments from TL Feeding (they need 3 - 31/2 acres) and E & 0 Tool. On the other hand, E & 0 Tool (they need 9 acres) also cannot move too quickly until they get some commitments on selling their existing facility. Mr. Gagne wants $20,000 per acre plus the balance of the assessments (trunk sewer and water) for his property. This request amounts to approximately $453,000 and the public improvements are a similar amount in order to extend the street and public utilities to the Government Center. A $900,000 project is a substantial expense for the EDA and it needs some commitments if it is to purchase and improve the entire 19.6 acre parcel (net 17 after the road is constructed). Excluding interest expenses which the city will recapture through a TIF project, the cost of the project is about a $53,000 per acre. This is less than the $58,800 per acre that TL Feeding agreed to in the Business Park. The commitment that the city needs for this proposal to work financially is from E & 0 Tool. If this commitment cannot be obtained from E & 0 Tool, then the city will be suggesting that Mr. Gagne sells a smaller parcel on the eastern side of his property to only accommodate TL Feeding. Actually, the city may then be suggesting that TL Feeding work directly with Mr. Gagne and that the city function like it was planning to function with the TIF in the Business Park and do a pay-as-you-go TIF project to assist TL Feeding. It should be noted that if E & 0 constructs 70,000 square feet for a value of $2.5 million and TL Feeding constructs 43,000 square feet with a value of $1.2 million, then the city believes it can recapture its $900,000 investment (plus interest) over an eight year TIF District. The balance of the property (about five acres) may then be available at a very low cost for a future Business Park prospect. eda:meetings/wkss nmm liv,, .4A ' ��' r- /Pr --__ 7 1 I Ai"' '' O ''.„,41111Ithil tir.• Ar glim ro ... 14A , : .. .. aVO r i: 11 fil %. IOW% .4.010 ,, 7 Aur ergs `•i, `�.1.r �W• on- • do 1:1 T ./I = / ! �� z dr doll .0 dig s �i;op Al O I orAlvAr.,- ,,,co. : is „„. ;,..,,...— NME 4 MI i hiNr- Apigellf,11. 411 IL,s- it �a.- ! • 111 441' MIMI , .-.-. Ilite.„ 411"ii . 114° .1( ) EtIr B ,l;ii_�14P `; 11110 al �� �11111M k ** 4?"01.011 -1,..... /,� i NII! mom !' _.. 11, _ _:_.. ��i t ma !I . 'N'''''...\ Y 1 Ala Wm IP " , 11 i :, me ;117111:1111i4 all::1141PL ;raga ! 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