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EDSR INFORMATION #3 02-08-1999 ifWbi ty of � River February 3, 1999 Mr. David Loch Sherburne County Board of Commissioners 13880 Highway 10 Elk River, Minnesota 55330 Dr. David Flannery Independent School District No. 728 Board 327 King Avenue Elk River, Minnesota 55330 Dear Mr. Loch/Dr. Flannery and County Board/School Board Members: • Subject: Tax Increment Financing District No. 19 in the city of Elk River The purpose of this letter is to provide an update to the county commissioners and school board regarding TIF District No. 19 in the city of Elk River. This TIF District is located at the southeast corner of the intersection of Highway 169 and Main Street - Earl Hohlen property and mobile home park. The Economic Development Authority is currently working with the developer on a concept which will provide tax increment dollars for redevelopment of the mobile home park site in exchange for the developer agreeing to construct a 40 acre business park adjacent to the south side of the tax increment district. The current concept being negotiated is for the business park to lie outside of the boundaries of the tax increment district, thereby generating tax revenues for the benefit of all the local taxing jurisdictions. The business park is planned to have a five to seven year build out schedule for approximately 350,000 square feet of industrial space. In this case, tax increment dollars are being used to leverage the construction of a 40 acre business park south of the proposed commercial redevelopment. • 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone: (612)441-7420 • Fax: (612) 441-7425 • Dave Loch/Dr. Flannery February 3, 1999 Page Two If you have any questions or comments regarding this or any other economic development issue, please feel free to call me at 441-4905. Sincere' , �•�2 c - @aul T. teinman Director of Economic Development PTS:akh c: Economic Development Authority Pat Klaers, City Administrator • •