6.0. HRSR 10-14-1996 (P.0
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
0 October 3, 1996 HRA Report 96-2
REQUEST CITY COUNCIL TO CALL PUBLIC HEARING ON TIF
DISTRICT NO 16
Proposed Action
Staff recommends adoption of the following motion: Move to request the City
Council to call a public hearing on January 27, 1997, for the establishment of
Tax Increment District No 16 (King and Main Project)
With approval of this action, staff will initiate a schedule which will outline
the necessary notification requirements and other actions as required by law
for the establishment of this TIF District and to prepare for the public
hearing on January 27, 1997.
Overview
In June, 1996, the HRA closed on its purchase of three separate properties at
• the corner of King and Main in downtown Elk River. Total cost of the subject
properties was $425,667.74.
The HRA is in receipt of a letter from the Chuba Companies indicating their
intent to purchase the site for $225,000 and construct a building with
minimum finished market value of$800,000.
The timing of purchase and demolition of the properties all related directly to
an effort to reduce the base value for tax increment purposes to zero dollars.
This was achieved by purchasing the properties prior to July 1, 1996,
demolishing the properties after January 1, 1997, and certifying the TIF
District and closing on the sale of the property to the developer after July 1,
1997.
Supporting Documents
• Sch ule establishment of Tax Increment District No 16
Paul T. Steinman, Director of Economic Development
• eda\hra\phtifl6.doc
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
AFT
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
AND THE
ELK RIVER CITY COUNCIL
FOR THE
ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 16
(a redevelopment district)
Schedule
October 14, 1996 HRA requests City Council to call for a public hearing
October 21, 1996 City Council calls for a public hearing to be held on
January 27, 1997 to establish Tax Increment Financing No.
16
October 28, 1996 Letter sent to County Commissioner of the area within
which the Tax Increment District No. 16 is to be created(at
least 30 days prior to publication of public hearing notice)
November 4, 1996 Complete draft of plans
November 26, 1996 Planning Commission finds tax increment plan to be in
• compliance with the comprehensive plan
November 26, 1996 Plan forwarded to School District and County Board(at
least 30 days prior to public hearing)
December 16, 1996 Send public hearing notice and map to local paper
January 1, 1997 Date of publication of hearing notice and map (at least 10
days but not more than 30 days prior to public hearing)
January 27, 1997 HRA approves plan
January 27, 1997 City Council holds public hearing on the establishment of
Tax Increment District No. 16 and passes resolution
approving plan
TI16sche
DRAFT
•