3.3. SR 12-14-1998ity of
River
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Item
Mayor & City Council
Paul Steinman, Director of Economic
Development
December 14, 1998
Consider Resolution 98- Requesting
a Public Hearing for TIF District No. 21
Consider Resolution 98- Requesting the Council to Call a Public
Hearing for TIF District No. 21
Issue
The City Council is being requested at this time to consider calling a pubhc
hearing for the estabhshment of a new economic development tax increment
district in the West Business Park. This would be Tax Increment Financing
District No. 21.
Background
Several months ago the EDA discussed a concept for a West Business Park
project with a company planning to expand out of Minneapolis. That project
did not proceed. Since that time, however, staff has discussed a similar
concept with a company looking at Elk River to expand its business
operations. This company has now made formal application to the city/EDA
for tax increment financing and a micro loan to aid in their planned
expansion project in the Elk River West Business Park.
The purpose of this agenda item is to start the tax increment schedule and to
authorize staff to begin to prepare the necessary documents and plans to put
a tax increment district in place. The EDA will plan several future
opportunities to discuss the specific tax increment plan and details of the
development agreement with the business prospect. The incentive package
concept being discussed at this time is as follows:
· 6 acres of land provided by the EDA up-front to the project
· Allowance for site improvements/grading/fill
$280,000 (app.)
25,000
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
· Allowance for construction of a berm along the south/southwest
lot lines of the site 35,000
· Incentive loan at interest rate of 6.5% & term of 10 years 50,000
Project Assumptions
· Phase I - Minimum building size of 50,000 s.f.
· Phase II - Future expansion - minimum building size of 20-35,000 s.f.
· Business Park standards for construction
· Specific standards to be met for creating new jobs vs relocation of existing jobs
Other issues/activities to be completed as part of this project include:
· execute purchase agreement with Tony Emmerich
· Tony Emmerich to complete plat of property
· negotiate details of Development Agreement
· coordinate a developer/EDA worksession to discuss details of
project
· EDA to consider Developer Agreement at February meeting
· determine funding sources for up-front dollars
· review micro loan application with EDA Finance Committee
· EDA to consider micro loan at February meeting
· close deal in March 1999
Attachments
· Resolution 98-
· Tax Increment District No. 21 Schedule
Recommendation
St~W recommends approval of Resolution 98- calling for a public hearing
to be scheduled for establishment of TIF District No. 21.
RESOLUTION 98 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION CALLING FOR A PUBLIC HEARING
BY THE CITY COUNCIL ON THE MODIFICATION OF
DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX
INCREMENT FINANCING DISTRICT NO. 21
BE IT RESOLVED by the City Council (the "Council") for the City of Elk River,
Minnesota (the "City"), as follows:
Section 1. Public Hearing. This Council shall meet on Monday, February 8,
1999, at approximately 6:30 p.m., to hold a public hearing on the proposed
modification of Development District No. i and the establishment of Tax
Increment Financing District No. 21 (an Economic Development Tax
Increment Financing District), all pursuant to and in accordance with
Minnesota Statutes, Sections 469.090 through 469.1081, inclusive, as
amended, and Minnesota Statutes, Section 469.174 through 469.179,
inclusive, as amended, in an effort to encourage the development and
redevelopment of certain designated areas within the City; and,
Section 2. Notice of Public Hearing, Filing of Program and Plan. Staff is
authorized and directed to prepare the Modification to the Development
Program and the Tax Increment Financing Plan (the "Program and Plan")
and to forward documents to the appropriate taxing jurisdictions including
Sherburne County and Independent School District No. 728. The City
Administrator is authorized and directed to cause notice of the hearing,
together with an appropriate map as required by law, to be published at least
once in the official newspaper of the City not later than 10 nor more than 30
days prior to January 8, 1999, and to place a copy of the Program and Plan
on file in the City Administrator's office at City Hall and to make such copy
available for inspection by the public.
Passed and adopted by the City Council of the City of Elk River this 14th day of
December, 1998.
ATTEST:
Henry A. Duitsman, Mayor
Sandra A. Peine, City Clerk
THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AND
THE ELK RIVER CITY COUNCIL
FOR THE
ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 21
(an economic development district)
Schedule
December 14, 1998
December 14, 1998
December 18, 1998
December 22, 1998
January 4, 1999
January 11, 1999
January 20, 1999
January 27, 1999
February8,1999
February9,1999
EDA requests City Council to call for a public hearing to be
held on February 8, 1999 to establish Tax Increment
Financing District No. 21.
City Council calls for a public hearing to be held on
February 8, 1999 to establish Tax Increment Financing
District No. 21.
Complete Tax Increment Plan.
Planning Commission reviews Plan for compliance with
the comprehensive plan. (altemate January 26, 1999)
Plan forwarded to School District and County Board (at
least 30 days prior to public hearing)
EDA approves Plan.
Send public hearing notice and map to local paper
Date of publication of hearing notice and map (at least 10
days but not more than 30 days prior to public hearing)
City Council holds public hearing on the establishment of
Tax Increment Financing District No. 21 and passes
resolution approving Plan.
Send Plan to County/State for certification
TI21 sch