6.4. SR 03-01-1993
ITEM 6.4.
TO:
SUBJECT:
MAYOR AND CITY COUNCIL
WILLIAM RUBIN, ED COORDINATO~~
FEBRUARY 26, 1993
TIF GRANT REQUEST FROM PERF-FORM
PRODUCTS, INC.
FROM:
DATE:
INTRODUCTION
At the January 25, 1993, City Council meeting, a request for
TIF assistance from Perf-form Products was discussed. At that
meeting, additional information on the Company was suggested,
and therefore, the Council decided to postpone a decision on
this matter until a later date.
BACKGROUND
Sometime after the January meeting, the Company was unable to
secure a Purchase Agreement on the site it identified in the
Elk River Industrial Park. As a result, the project was
delayed as the Company evaluated other sites in the community
and in the area.
~ Mr. Doug Koelfgen, President of Perf-form, has now identified a
site in the McChesney Industrial Park and he is prepared to
move forward with his expansion project based on the ability to
obtain a TIF Grant. The basic structure of the TIF Grant
remains the same. That is, TIF funds from Districts No. 1 and
No. 3 would be used to assist the Company with certain
"eligible expenditures" authorized by Minnesota Statutes.
Perf-form has identified specific costs which are eligible for
this assistance:
- On-site utility extensions
- Site preparation
- Land Acquisition
ACTION REQUESTED
Concurrence from the City Council is sought regarding the
availability of TIF funds from Districts No. 1 and No. 3 to
fund the costs outlined above. As with the previous request,
final action on a TIF Grant to Perf-form is subject to:
,
~
- The filing of a TIF application
- Payment of a TIF application fee
- Execution of a Development Agreement
TIF payments made only after a Certificate of Occupancy is
issued
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
.
.
.
I would suggest that the City not use TIF for
writedown unless the City is in the chain of
Mr. Koelfgen may identify other eligible costs
land writedown grant.
acquisition/land
title. However,
in lieu of a
An attachment to this memo includes a January 7, 1993, and a
February 25, 1993, letter from Perf-form.
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Perf-f!!!!"
February 25, 1993
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
Mr. William Rubin
Elk River, Minnesota
Dear Bill,
Having now located an acceptable lot to build on in the
McCHESNEY Industrial Park, (lot #3) I would again request your
board consider the following Tax and Financing proposal.
.
The proposed building would be a 75' X 80" (6,000 sq. ft.)
Varco-Pruden Building with rock faced block walls to 7'2"
then steel to 16'. The back wall would be all steel for future
expansion. There would be approximately 5,000 sq. ft. of Black
Top drive way and parking area.
The building and lot preparation costs would be approximately
$150,081. with the lot price of $30,000 for a total project
cost of $180,081.
The site is low and would require fill and compacting at a
cost of approximately $8,300.
Sewer & water extensions to the building was bid at $4,700.
This includes teeing into the main water line with a 6" T
located in the middle of York Street.
I would request the City of Elk River provide tax and
financing help in the amount of $13,000 for site improvements
and $15,000 in lot acquisition money.
.
21595 Cty. Rd. 83 N., Big Lake, MN 55309 · Phone (612) 263-6615
.
Perl.f!J.!!!'
Page 2.
Perf-form Products is a small but growing company with 25% or
more growth per year and total revenues of $258,361 in
1992. We employ 2 full time and 2 part time employes including
myself, and will add at least 1 more fill time employee in the
next year. We have not been able to meet market demand this
past year as lack of space is limiting our production
capabilities.
The acquisition and building of new production equipment has
the company poised for a substantial production increase if
the equipment can be set up in a larger facility with enough
space for a continues manufacturing processl versus our
current batch process. This/combined with new products such as
a patent pending replaceable element Spin-On filte~ should
continue our growth well into the future.
.
I am hopeful that the City of Elk River would consider
Perf-form Products an asset to the community and grant
the requested tax and financing help.
SincerelYI
y~rf<:
Douglas F. Koelfgen
Presidentl Perf-form Products I Inc.
.
21595 Cty. Rd. 83 N., Big Lake, MN 55309 · Phone (612) 263-6615
.
Perf-f!!!!"
-eAC~OUND ON CoW\fANI(-
January 7, 1993
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
Elk River, Minnesota
he purpose of this letter is to give a brief description of
our company, provide cost estimates for proposed site
acquisition, and utility improvements. Doing so in the hope
that some financial help can be obtained to make it possible
for us to construct a new building on the 1.4 acre lot
bordering Hwy. 1 in the Elk River Industrial park.
/The company started as Douglas Filter Company in 1981.
Working out of my basement in Delano, MN. in my spare time,
. I manufactured small quantities of a Motorcycle Oil Filter I
~.rujh~P designed and patented. Sales grew as more people became
~.o aware of Perf-form Oil Filters. I purchased a home in Big
Lake township in June of 1985 and obtained a conditional use
O~ permit to operate the business on the property.
I incorporated and changed the company name to PERF-FORM
PRODUCTS, INC. in September of 1991. Presently we have
13 products, manufactured from tin-plated steel, filter
paper, Plastisol glue, and assorted gaskets or O-Rings
to make the different filters. The filters are packaged and
shipped to our 27 distributors in the USA, Canada, The
Netherlands, Sweden, and Germany. I am to the point that in
order to operate efficiently or to grow any further it is
imperative that we have more space. We have grown more than
30% a year in the past and I expect this to continue.
NO VO~~
tcI,v\~
continued on page 2.
.
21595 Cty. Rd. 83 N., Big Lake, MN 55309 · Phone (612) 263-6615
.
PerJ-h'!!1!"
Page 2.
/T.he quote obtained from Aho Construction, Inc. (the building
~~^ ~ contractor) to put in the required extension of Service
~ Drive, 60' on the adjoining lot, and 169' on the proposed
~~~ d lot carne in at $13,000. Sewer & water extensions to the
kldC~~~ building would cost $5,000. and another $7,385. for a drive
~O p. way & parking lot. These costs along with the purchase price
~~~ of the property itself ($20 to $26 K) would bring the site
-;. \ acquisition and improvement cost conservatively to
$47,385., that's not including the landscaping that would be
necessary.
.
It would be nice to locate in the Elk River Industrial Park
and keep our school tax dollars in the same district, but
with out substantial assistance in some form to offset the
site costs I don't believe it will be possible.
Sincerely,
5h~;<:/~
Douglas F. Koelfgen
President, Perf-form Products, Inc.
.
21595 Cty. Rd. 83 N., Big Lake, MN 55309 · Phone (612) 263.6615