EDSR MEMORANDUM 07-10-1995 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
• MEMORANDUM
TO: Economic Development Authority
FROM: William Rubin, Executive Directo I
DATE: July 10, 1995
SUBJECT: Agenda Memo for July 10, 1995
EDA Meeting
6. July Financial Update
Please refer to the financial summary prepared by Assistant City Administrator,
Lori Johnson.
• Action Requested
The July financial update is an informational item and no action is requested.
8. "Qualifying Local Contribution"Illowrey/Neos, Inc TIF Project
At its June 19 meeting, the Elk River City Council approved a tax increment
financing request from Mr. Jack Mowrey/Neos, Inc. to support the proposed
construction of a 12,000 square foot manufacturing facility in the McChesney
Industrial Park. In accordance with the TIF policy guidelines, the maximum TIE
grant cannot exceed 15 percent of a project's finished market value. Therefore,
the TIF grant will likely range from$56,250 (based on a finished market value of
$375,000)to$67,500 (based on a finished market value of$450,000).
In approving the 1,1k grant, the City Council also agreed to explore the
opportunity to opt out of the Local Government Aid - Homestead and Agricultural
Aids (LGA/HACA) reduction by making a "qualifying local contribution" in an
amount equal to a percentage of the tax increment. For an economic development
TIF district, the contribution is 10 percent.
•
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