6.1.A. SR 07-10-2000Item ~ 6.1.A
~ ,City of
iYer
FROM:
DATE:
City Council
Marc Nevinski, Assistant Director of
Economic Development
July 10, 2000
SUBJECT: ANC/Opus Proposal
Issue
A proposal has been submitted by Opus Northwest, in conjunction with
Advanced Nutrionals Corporation / PouchPac Industries (ANC) to
develop the 14.97 acre Emmerich property in the West Business Park.
Opus and ANC are requesting that pay-as-you-go Tax Increment
Financing be used to write down the land costs.
Background
ANC intends to build a state of the art plant in Elk River that will
produce, package, and distribute beverage products in stand-up
flexible pouches. The facility will be built by Opus Northwest and will
consist of a premium fabcon concrete structure of approximately
75,000 square feet in Phase I and may approach 200,000 square feet in
subsequent expansions. Six thirty-seven foot storage tanks will be
included in the design of the building and will require a conditional use
permit. ANC plans to employ approximately 50 people with the initial
phase and up to 200 with subsequent expansions. Many of the jobs
will be technically oriented and will command higher wages.
Staff has proposed the following financial package for the project:
· Refund 100% of land costs over a 4-5 year period (interest rate to
be negotiated).
· $100,000 micro-loan at four (4) points below prime
· 20% reduction in water rates for a three-year period of all water
usage in excess of 2,000,000 gallons per month.
As is often the case, this project is on a very tight schedule and staff is
doing its best to accommodate the timeframe where possible. Opus
and ANC are in the process of completing the necessary paperwork,
including the TIF application, and submitting site plans. Although the
TIF application was not available for inclusion in this packet, it is
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 * TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
staffs intention to provide a copy of the application and a rating sheet
at the council meeting.
Action Requested
Attached is a resolution (anticipated to be) passed July 10, 2000 by the
EDA recommending that the Council consider taking steps to establish
Tax Increment Financing District No. 21. Staff requests that the
council consider the attached resolutions:
· Calling for a public hearing on August 21, 2000 on the
modification to Development District Number 1 and the
establishment of TIF District 21.
· Calling for a public hearing on August 21, 2000 to establish the
business assistance criteria for TIF District 21.
Attachments · Site Map
· Resolution calling for a public hearing on August 21, 2000 on the
modification to Development District Number 1 and the
establishment of TIF District 21.
· Resolution calling for a public hearing on August 21, 2000 to
establish the business assistance criteria for TIF District 21.
· Resolution from the EDA recommending that the Council take
action to establish TIF District 21.
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John Otiver & Associates
SHEET 2 OF 2 SHEETS
CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO. 00-
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY OF
ELK RIVER ON THE PROPOSED ADOPTION OF THE
MODIFICATION TO DEVELOPMENT DISTRICT NO. 1 AND THE
PROPOSED ADOPTION OF THE TAX INCREMENT FINANCING
PLANS FOR TAX INCREMENT FINANCING DISTRICTS 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, August 21, 2000, at
approximately 6:00pm, to hold a public hearing on the proposed adoption of the Modification to
Development District No. 1 and the proposed adoption of the Tax Increment Financing Plans for Tax
Increment Financing District No. 21, all pursuant to and accordance with Minnesota Statutes, Sections
469.090 through 469.1081 and 469.011 through 469.047, inclusive, as amended, and Minnesota Statutes,
Sections 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 Modifications. City staff is authorized and
directed to prepare the Modification to Development District No. 1 and the to Tax Increment Financing
Plans for Tax Increment Financing District No. 21 ("the plans") and to forward documents to the
appropriate taxing jurisdictions including Sherburne County and Independent School District No. 728.
The City Clerk 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 Monday August 21, 2000, and to place a copy of the plans on file in
the City Administrator's office at City Hall and to make such copy available for inspection by the public.
Dated: July 10, 2000
Adopted:
ATTEST:
Mayor, Stephanie Klinzing
City Clerk, Sandra Peine
s:\eda\tif~tif2 l\ccres 1.doc
CITY OF ELK RIVER, MINNESOTA
RESOULTION CALLING FOR A PUBLIC HEARING ON THE PROPOSED
ADOPTION OF A BUSINESS ASSISTANCE CRITERIA FOR TAX
INCREMENT FINANCING DISTRICT NO. 21
RESOULTION NO. 00
WHEREAS, the State Legislature has adopted Minnesota Statutes, Section
116J.993 to 116J.995 ("the Statutes") governing business subsidies granted by unties of
government; and
WHEREAS, the City of Elk River, a municipality, fits the definition of "grantor"
in the Statutes; and
WHEREAS, a grantor is required to adopt a set of criteria for awarding business
assistance.
NOW, THEREFORE, BE IT RESOLVED by the City Council ("the Council") of
the City of Elk River, Minnesota, as follows:
Section 1. Public Hearing The Council shall meet on August 21, 2000 at approximately
6:00pm to hold a public heating on the proposed adoption of criteria for awarding a
business assistance in accordance with the Statutes; and
Section 2. Notice of Public Hearing City staff is authorized and directed to prepare the
criteria. The City Clerk is authorized and directed to cause notice of the hearing to be
published at least once in the official newspaper of the City of Elk River not later than 10
days prior August 21, 2000 and to place a copy of the proposed criteria on file and to
make such a copy available for inspection by the public.
Dated: July 10, 2000
ATTEST:
Mayor Stephanie Klinzing
City Clerk, Sandra Peine
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THE ECONOMIC DEVELOPMENT AUTHORITY OF
THE CITY OF ELK RIVER, MINNESOTA
RESOLUTION #00 -
RESOLUTION RECOMMENDING THAT THE CITY COUNCIL OF THE CITY
OF ELK RIVER CALL FOR A PUBLIC HEARING ON THE ADOPTION OF A
MODIFICATION TO DEVELOPMENT DISTRICT NO. 1 AND THE
ESTABLISHMENT OF TAX INCREMENT FINANCING PLANS FOR TAX
INCREMENT FINANCING DISTRICTS NO. 21
BE IT RESOLVED, by the Economic Development Authority of the City of Elk River, Minnesota (the
"EDA") as follows:
WHEREAS, the City Council ("the Council") of the City of Elk River, Minnesota (the "City")
established Development District No. 1 pursuant to Minnesota Statutes, Sections 469.090 through 469.1081
and 469.011 through 469.047, inclusive, as amended, in an effort to encourage the development and
redevelopment of certain designated areas within the City; and
WHEREAS, the City is proposing the Modification of Development District No. 1 and the
establishment of Tax Increment Financing Plans for Tax Increment Financing District No. 21, pursuant to
and in accordance with Minnesota Statutes, Sections 469.090 through 469.1081 and 469.011 through
469.047 and Sections 469.174 through 469.179, inclusive, as amended;
NOW, THEREFORE BE IT RESOLVED by the EDA as follows:
The EDA hereby recommends that the Elk River City Council call for a public hearing on August 21,
2000 to consider the proposed adoption of the Modification to the Development District No. 1 and the
proposed adoption of the Tax Increment Financing Plans for Tax Increment Financing District No. 21
and cause notice of said public hearing to be given as required by law.
The EDA directs the Executive Director to transmit copies of the Modification to the Planning
Commission of the City and requests the Planning Commission's written opinion indicating whether the
proposed Modifications are in accordance with the Comprehensive Plan of the City, prior to the date of
the public hearing.
3. The Executive Director of the EDA is hereby directed to submit a copy of the Modifications to the
Council for its approval.
The EDA directs the Executive Director to transmit the Modifications to the county and the school
district(s) in which Tax Increment Financing District No. 21 is proposed to be established no later than
July 19, 2000.
Approved by the EDA July 10, 2000.
President, Pat Dwyer
ATTEST:
Catherine Mehelich, Executive Director
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