Loading...
EDSR MEMORANDUM 11-15-1993 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATOj DATE: NOVEMBER 8, 1993 �II SUBJECT: AGENDA MEMO FOR NOVEMBER 15, 1993, SPECIAL EDA MEETING 2 . Public Hearing on KjellbergTIF Plan (TIF District No. 12) At its October EDA meeting, Commissioners authorized the preparation of a Tax Increment Financing Plan for the Kjellberg redevelopment project in the 600 block of Main Street. An EDA public hearing on this matter was scheduled for November 15, 1993 . The request for tax increment financing assistance comes from Kurt Kjellberg/Kjellberg's Carpet and Interiors, 16862 Highway 10, Elk River, Minnesota. The developer seeks $165,000 in tax increment financing assistance to support its proposed construction of a 12,000 square foot • retail facility. The developer proposes to occupy approximately 6,000 square feet on the main floor, and, the remaining 6,000 square feet will be leased space. The $165, 000 in TIF assistance will be used for site preparation costs associated with the redevelopment site. As with past TIF requests, the developer is basing the request on estimates only; it is incumbent upon the developer to furnish the EDA with paid receipts to subcontractors performing the site preparation work. Actual payment of the TIF subsidy is based on those receipts and is subject to a "not to exceed" basis . TIF District No. 12 will be a "redevelopment TIF District". TIF District No. 12 would exist for a period of twelve to thirteen years, during which time tax increment funds will be collected by the EDA/City for ten to eleven years. To support this request for TIF assistance, the EDA will likely privately place a tax increment note through a lending institution. The note will fund the site preparation costs along with capitalized interest, cost of issuance fees, etc. , which are outlined in greater detail in the TIF Plan budget. The privately placed note would total approximately $195,000, and, would be recovered with interest over the ten to eleven year period during which • time the EDA/City collects the new property taxes from the retail project. The TIF collection is scheduled to begin 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 in 1996 and will run up to and including the year 2006 . This cash flow is outlined in greater detail in Exhibit D. To help you understand this illustration, please refer Sto the column with the year "1996" . Because the property is tax-exempt, there is no original net tax capacity so it is marked $0 . The total net tax capacity of $27, 150 is achieved by taking the finished market value of the commercial project (that is $625,000) and applying the Assessor' s commercial formula. Because of the tax exempt status of the land, the $27 , 150 also becomes the "captured net tax capacity" . This figure is multiplied by the tax rate of 103 .025 to achieve an estimated captured tax increment of $27, 971 . The additional heading marked "cumulative increment" represents the amount of tax increments collected in subsequent years . Please note that in the year 2006, the cumulative increment is $307,681 . This total is sufficient to retire a $195, 000 "note" with an interest rate of, say, 7 . 5% . Below are the following elements that will affect the collection of tax increments : - Assessor' s commercial formula, - Finished market value, - Tax rate. The TIF Plan for TIF District No. 12 is included in the agenda packet. • Action Requested After conducting the public hearing on TIF Plan for TIF District No. 12, the EDA is asked to adopt Resolution 93-5, which is found in the agenda packet. 3 . Public Hearing on EDA Land Sale State law requires that an Economic Development Authority conduct a public hearing on the proposed sale of property owned by an EDA. The November 15th public hearing relates to the proposed sale of the EDA Main Street Redevelopment Site to Kurt Kjellberg/Kjellberg' s Carpet and Interiors . This public hearing was authorized at the October 11th EDA meeting. Conveyance of the land, however, is subject to: City Council approval of the TIF Plan for TIF District No. 12; - Execution of a Contract for Private Development by and between the EDA and Kurt Kjellberg/Kjellberg' s Carpet and Interiors; - Execution by Kjellberg of an Assessment Agreement which establishes the minimum market value for tax purposes on the land and the building. As TIF District No. 12 is currently proposed, the City/EDA collects new property taxes from the Kjellberg facility beginning in 1996 and ending in the year 2006 . This allows the City/EDA to repay a privately placed noted totalling $195,000, with interest. The $195,000 covers the site preparation reimbursements up to $165,000, and, covers capitalized interest, cost of issuance fees, and miscellaneous expenses, etc. The current TIF Plan does not include the collection of additional tax increments to recover the value of the land which was acquired by the City in July, 1991, at a price of $109,540 . Prevailing opinion here is that in order for a redevelopment project to move forward, EDA Commissioners would likely have to convey the property by virtue of a complete write down of its cost. In order to recover the additional, say, $110, 000, District No. 12 would have to be extended an additional four years to the year 2010 . The inherent problem with extending the District is that of four additional years of state aid losses by the City. As a result of the last Legislative Session, developer reimbursement of state aid losses is prohibited. Staff and the City Attorney are currently working on other mechanisms to address this prohibition. The issue of extending the District' s life is that of where and when to cut the City/EDA losses in order for redevelopment to be achieved. In addressing this issue, • EDA Commissioners should keep in mind: - The current TIF Plan calls for TIF collections during eleven years; - State law allows a City/EDA to collect tax increments from a "Redevelopment District" for twenty-five years; - In order to recover the City' s acquisition price, District No. 12 would have to be extended four more years (that is, collecting tax increments for fifteen years) . A final element for consideration is that of the developer benefitting from the TIF assistance during the time tax increments are being collected. That is, the developer, in one form or another, realizes significant incentives from this project. To prevent the developer from "building and bolting" (that is, obtaining the land free of charge and then selling the project to an investor two or three years down the line with the land value being factored into the sale) , the City/EDA should consider a mechanism by which it is reimbursed, in whole or in part, for the land value if a transaction occurs during the TIF collection timeframe. For example, if the developer sells the project within the first five years of TIF repayments, perhaps 100% of the site's value is paid to the City/EDA. In subsequent years (years six through eleven) , the land repayment scenario is 85% (year six) , 70% (year seven) , 55% (year eight) , 40% (year nine) , 25% (year ten) , and 10% (year eleven). • Action Requested After conducting the public hearing, the EDA is asked to approve the sale of the Main Street Redevelopment Site to Kurt Kjellberg/Kjellberg' s Carpet and Interiors subject to the terms and conditions of a Contract for Private Development and execution of an Assessment Agreement. This action is further subject to the City Council approval of the Kjellberg TIF request. it • • • DRAFT TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 CITY OF ELK RIVER, MINNESOTA DECEMBER 13, 1993 TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 SUMMARY Kjellberg' s Carpet and Interiors, 16862 Highway 10, Elk River, Minnesota, seeks $165,000 in tax increment financing assistance to support its proposed construction of a 12,000 square foot retail facility in the Elk River Central Business District. Kjellberg' s Carpet will occupy approximately 6 ,000 square feet on the main floor of the retail facility. The remaining 6,000 square feet will be leased space. The new facility will have a finished market value estimated at approximately $625,000 . Construction may begin during the fall of 1993 and will be completed by the spring of 1994 . The Economic Development Authority for the City of Elk River, Minnesota, is proposing the creation of a Redevelopment District pursuant to the Tax Increment Financing Act. Tax increment funds will be used for site preparation costs associated with the redevelopment site. The site is currently owned by the Economic Development Authority and will be conveyed to Kjellberg's Carpet and Interiors subject to the terms and conditions of a Development Agreement. The property taxes produced by the retail facility will be 411 "captured" by the Economic Development Authority so that the City of Elk River can recover the $165,000 in tax increment assistance as well as the other costs outlined in the tax increment budget. After recapturing the project debt, Tax Increment Financing District No. 12 will be decertified, thereby enabling all local taxing jurisdictions (county, school, city, etc. ) to share in the project' s property taxes. The Economic Development Authority for the City of Elk River, Minnesota, anticipates that Tax Increment Financing District No. 12 will exist for approximately twelve ( 12) to thirteen ( 13) years; during which time tax increment funds will be collected for ten (10) to eleven ( 11) years . TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 A. STATEMENT OF OBJECTIVES Tax Increment Financing District No. 12 is located entirely within the City's Development District No. 1, a Municipal Development District created and established pursuant to the Development District Act. The Development Program for Development District No. 1, was adopted by the City Council on April 1, 1985, and was amended on January 27 , 1986, and November 30, 1987 . The objectives of the Development District, as amended, and as set forth in the Development Program, are hereby incorporated into this Tax Increment Financing Plan. Attached as Exhibit A is a map of Development District No. 1 . The specific objectives of the Tax Increment Financing Plan for Tax Increment Financing District No. 12 are: 1 . To provide opportunities for the redevelopment of land within Development District No. 1; 2 . To eliminate a blighted area within the Elk River Central Business District; 3 . To preserve and enhance the tax base of the City; and, 4 . To provide maximum opportunity, consistent with the needs of the City, for development by private enterprise. B. CLASSIFICATION OF THE DISTRICT The City Council of the City of Elk River, Minnesota determines that it is necessary, desirable, and in the public interest to designate, establish, develop, and administer a Redevelopment Tax Increment Financing District in the City of Elk River pursuant to the provisions of the Tax Increment Financing Act, Minnesota Statutes 469 . 174, Subdivision 10 . The purpose of Tax Increment Financing District No. 12 is to encourage the redevelopment of a blighted area in the Elk River Central Business District, thereby increasing local employment opportunities and preserving and enhancing the local tax base and the tax base of the State of Minnesota. The City Council of the City of Elk River finds that 100% of the parcels included in proposed Tax Increment Financing District No. 12 are occupied by improvements which are structurally substandard to a degree requiring clearance before the parcels can be built upon. These improvements include structurally substandard walls, floors, and footings which do not comply with the Building Code applicable to new buildings and cannot be modified to comply with the Building Code. Attached to this Plan as Exhibit F is a report from the City Building Official to this effect. For this reason, the City Council finds that proposed Tax Increment Financing District No. 12 meets the criteria of Minnesota Statutes Section 169 . 174, Subd. 10(A) and qualifies as a Redevelopment District under the Minnesota Tax Increment Financing Act. C. DEVELOPMENT PROGRAM 1 . Overview Kjellberg' s Carpet and Interiors, 16862 Highway 10, Elk River, Minnesota, seeks Tax Increment Financing assistance to support its proposed construction of a 12,000 square foot retail facility in the Elk River Central Business District. The Tax Increment funds will be used for site preparation costs including clearance of the substandard improvements currently occupying the site. 411 2 . Property Included in Tax Increment Financing District No. 12 The legal description of the property included in TIF District No. 12 is as follows: The West 71.7 feet of Lot 15, Auditor' s Subdivision No. 4 (PID No 75-404-0150 and No. 75-404-0151) Attached as Exhibits B-1 and B-2 are maps showing the exact location of the property included in Tax Increment Financing District No. 12 . 3. Property to be Acquired by the Authority No property is scheduled for acquisition by the Economic Development Authority for the City of Elk River, Minnesota. The redevelopment site is currently owned by the Economic Development Authority and will be conveyed to Kjellberg's Carpet and Interiors subject to the terms and conditions of a Contract for Private Development. r aD. DEVELOPMENT ACTIVITIES 1. Development Overview Kjellberg' s Carpet and Interiors proposes to construct a new retail facility containing approximately 12,000 square feet on the redevelopment site. The new facility will have a finished market value estimated at approximately $625,000. Construction may begin during the fall of 1993 and will be completed by the spring of 1994 . Kjellberg's Carpet will occupy approximately 6,000 square feet in the retail facility. The remaining 6 ,000 square feet will be leased space. 2 . Contracts No contracts have been entered into at the time of the preparation of this Tax Increment Financing Plan. Proposed contracts for services associated with Tax Increment Financing No. 12 include: - Contract for Private Development • - Contract for construction of a 12,000 square foot retail facility (by Kjellberg' s Carpet and Interiors) E. FINANCIAL ANALYSIS OF TAX INCREMENT FINANCING DISTRICT NO. 12 1 . Tax Increment Financing District No. 12 Cost Estimates Budget Amount Site Preparation $165,000 Administration -0- Legal $ 5,000 Cost of Issuance Fees $ 6,000 Bond Discount -0- Capitalized Interest $ 19,000 Miscellaneous 5,000 Total $200,000 Total Project Costs $200,000 Less Application Fee 5,000 Net Project Costs $195,000 • • 2 . Bonded Indebtedness The Elk River Economic Development Authority is proposing to privately place a tax increment note through a lending institution to finance the costs associated with Tax Increment Financing District No. 12 . 3 . Sources of Revenue to Pay Public Costs Tax Increments collected from the Kjellberg retail facility will be used to pay the public costs associated with Tax Increment Financing District No. 12 . 4 . Original Tax Capacity The original net tax capacity, based on the January 2, 1992, valuation, for the real property in Tax Increment District No. 12 is estimated to be $0 . 00 . The County Auditor Certification attributable to this value is attached as Exhibit C. 5 . Estimated Captured Tax Capacity 411 The finished market value upon completion of the improvements in Tax Increment Financing District No. 12 is estimated at $625,000 . This value translates into a completed net tax capacity estimated at $27 , 150 . The captured net tax capacity is estimated as follows : Completed Net Tax Capacity $27, 150 Less Original Net Tax Capacity -0- Equals Captured Net Tax Capacity $27 , 150 One hundred percent of the captured net tax capacity of Tax Increment Financing District No. 12 will be required to finance the public redevelopment costs associated with District No. 12 . As a result, the City of Elk River elects, pursuant to Minnesota Statute 469 . 177 Subdivision 2 (a) ( 1) , to retain the full captured net tax capacity of Tax Increment Financing District No. 12 . 6 . Duration of the Tax Increment Financing District No. 12 The City of Elk River expects that the first increment it will receive from Tax Increment Financing District No. 12 will be for taxes payable in 1996, and will be based on a completed value as of January 2, 1995 . The City expects to continue to receive tax increment from Tax Increment District No. 411 11 up to and including 2006 , or until the project debt of $195,000 has been repaid. Thereafter, no further increments may be received and Tax Increment District No. 12 will terminate. F. CASH FLOW ANALYSIS Attached as Exhibit D is the Cash Flow Analysis for Tax Increment District No. 12 . G. IMPACT ON OTHER LOCAL TAXING JURISDICTIONS 1 . Estimated Impact of District No. 12 on the Taxing Jurisdictions Assuming the Captured Net Tax Capacity is Available to the Taxing Jurisdictions Without Creation of District No. 12 : Pursuant to Minnesota law, tax increment generated by development within the Tax Increment Financing District may be captured by the City for a period of up to twenty-five years . Because of the current tax-exempt status of the redevelopment site, no property tax benefit is attributable to the local taxing jurisdictions . . 2 . Estimated Impact of District No. 12 on the Taxing Jurisdictions Assuming None of the Captured Net Tax Capacity is Available to Taxing Jurisdictions Without Creation of District No. 12 : The Economic Development Authority of the City of Elk River has determined that the Kjellberg' s Carpet and Interiors redevelopment project would not reasonably be expected to occur without the creation of TIF District No. 12 and the use of tax increment financing. Therefore, none of the net tax capacity captured during the term of this TIF District would be available to other taxing jurisdictions without the creation of this district. The local taxing jurisdictions will receive positive benefits after TIF District No. 12 is decertified. 3 . Additional information on the impact of Tax Increment Financing District No. 12 on the other local taxing jurisdictions can be found in Exhibit E. H. STUDIES AND ANALYSIS USED TO DETERMINE THE NEED FOR TAX INCREMENT FINANCING The Elk River EDA and City Council have determined that • the Kjellberg' s Carpet and Interiors redevelopment project cannot reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of Tax Increment Financing • assistance is deemed necessary. This determination has been made based on the following: - The extraordinary site preparation costs associated with this redevelopment project, due to the existing substandard improvements currently occupying the site, prohibits private investment from occurring on its own initiative. By virtue of its ownership since July, 1991, the Elk River EDA has without success attempted to attract private investment at the redevelopment site. Therefore, public participation, in the form of tax increment assistance, is required in order for this redevelopment project to occur. I . PARCELS INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 12 Tax Increment Financing District No. 12 is comprised of two land parcels . They are listed below: 1993 Original Parcel 1992 EMV Pay 1993 Net Tax Capacity 75-404-0150 $ 59 ,200 $0 (Tax Exempt) 75-404-0151 $ 59 ,200 $0 (Tax Exempt) • Please refer to Exhibit C for the County Auditor Certification of this parcel in Tax Increment Financing District No. 12 . • • 10- 4Jd14 •1411 , , • .I . , : ' 4 .I.i - iia Ida a : ' 4 .. 4 i i • • 4 I I -=.1t �� • If t • LT - - . ._ . . .. w" —- l • rjt. .1 r f{. 'F . I I : r\ - 1 1. 1- , ' I ` { l � . , .k--?:' y1I II s : a • • t g.c I ' 0, r ro_ 4_ ff -ry ;;; •r -� _ _-c-..,--- � _;I lil 41 11 _=;�� a .11 • —2-- BOUNDARY OF • °I DEVELOPMENT DISTRICT NO. 1 ---' i (CITY LIMITS) `- . , ,, _,_. , .......,.._ .... . Elk River. • , _ . ..... . ,.._ i i II �%. _ / ..s 4 # 11i•• � tli - EXHIBIT A DEVELOPMENT DISTRICT NO. 1 1 HiVHLNDilio /93.. - ' a • 1",: J LtA9 *I Pilaf .SAVES. eigir 193RD AVE 1' 192 w ®i . rr /..,, .:i, -7- lip tit 11111 . 10 „fra A 1 V 0 , 11; fj-w „ RisiO Ill Allgi ti, 4"-etio I 14,,NI —T-- ,___ lilt'4. 2 r3Arieritit 191 Mk - 41/45kiil*,,,„„igtia —11 MI - '- i 111 . trff An • :®Ita® jimilla 1330* ` '�. 190 V2 tk. wiegetirsmniarg 144 4%, .Vik aa PPM OUT IOT 4SIi =- ,fitv _AI 1111011/MIMI NMI o ; p �►V 1 1 6 I 0 .0 IP Wilt 11 Mil II III WMILS, 154' Alr IP1P ,, glidAtAL ti inigim -,''' El . . ' '8 al ret I 4 tit 3E7 qink Millirlfigl PA 7 grIP NS - ha ems`• ---1-. . ► �®!RPW itisin_.____....,...sr__j 1 647AQIIIIM ill »det... saw.' Ebm.scTW vAilili ■ ra 'se. \ 11 tICV1 rE3 ?in,'" iiiiil Si1111 ll ,Coy 111r1 •, WOO Oil 715 OCAS . - �_ D..ttA,iz: AZA - „ �� ui o n r�d�:,14111 ��� to PL 4 1:11-14 51 74 ° ii :IES MO m+" QIw E0 rel .. -114So, ?� moi_ R/VER O l, al ."- 90' 1 51. Q�F � N • ►i1 cin ����Q �'�y3;� �°LA24 ND ® 3 G° f \ lialug u i RNall 'd1�1R•�'Ma Mai r���S RI E 3R9 ` J. ki -arRLaV� N 4 0 ®1111 111111111 J i_�..:- R IV ftj� 141,� 9 646-- 3 we i'"■—,� lip =DITOR S I rN 3L WPMS 3 0101111111 J „NT=/meq Mai �•� ' flIii. odic t 11 t ira iid" ag. ast -iimist PI ng 0, ;L.." 'ii I1� �ow 71 ® Ei_ ID--, "pi mr.- wara ••---a cira z hwita, \ gm ain 1111311.1 , --. \ . ir,„ ir -.,...„.. II. _ _ _ .sva. Iligun Ea 0 cr, I I , ...). ?.14 ' - 1�' A lio,... ‘ , , 7 c, t,-.t g 1 ii 47/ 1.t ril /ti 1 -, .,---. \ 4 - i / / II (I ,\,, f t� l � �, EXHIB ; .. i*i( 0 9 /30 ,� ' AXI ` !°F,- EMENT .1 ,.. d'T 6 2 � � w Qom` / c ' / 7 'ede d' ,fr, 4, is, ... „, 0 I 1$, 41 : .:: 4,4/ if .\<'cL 0-.40 00 * ''' . ' m S n ^ 4.4 : ?..111:4)8' 4 _ >,.... ,..._ .-e, . 1 „..ammelaw.., ......., ., ___, ,,,,, :.: • M ,8 0 8 ♦ � $ U 8 1 Z +• 0 s ,, 4 g .... w' W c. N ,..„. ., A (0) . ,z.. ••.:...: -.....1 gin I w 8 : :, k: •4 S . :::::...,: 1. .: *it ..“8. eS - air f- ''. 44,1”: , .: .. -Cr"al.: ... ii*zio . HIBIT B-2., ., . • w, "z*, 'g � TAX INRE ENT DISTRICT RICT NO.12 • PeCI•ribSer, =1111.0104, ua J J • 0 h 0 h 05-0 N.,, 0 AseoALT 1\1 Po q�,4� Z 1-1041 'csa,••• Z'FA dbfrL7 PAeKcr IJ 4,1 c y, 4.-t) t-I ��. RE7A1gsg IBIT B-3 X NT DISTRICT NO.12 TAINCRE �xlsrlrl5 naavEwA f -lo NwFE 1©IIAL 3w,. I b V) -, W =! n • 4 .r ti J 7 �1 J r..1- ;"iii ..nnnr.ii . • • I- • U . • • . .4 . . • 0 • df , ' i JP! < • . .• • • • `� t 17 _ -Y - • W 0 • �I� • L' w . . w EXHIBIT B-4 TAX INCREMENT DISTRICT NO. 12 EXHIBIT C COUNTY AUDITOR CERTIFICATION TAX INCREMENT FINANCING DISTRICT NO. 12 The original net tax capacity of the following listed parcel (s) as of January 2, 1993, is certified to be: $0 . 00. The parcel(s) contained in Tax Increment District No. 12 are listed below: Parcel 1993 EMV 1993 Original Number Pay 1994 Net Tax Capacity 75-404-1500 $ 59,200 $0 (Tax Exempt) 75-404-0151 $ 59,200 $0 (Tax Exempt) TOTAL $118,400 $0 • E. Dale Palmer SHERBURNE Sherburne County Auditor COUNTY SEAL December , 1993 • 4 4 nl I 0 0 In I N O 0 an In N0 0 O I N .4 0 I 10 N . . n n el n N N 0 0 N P1 M M M M • I O 0 In N N 10I O 4n N N n C4 O 1 N N p ON h 10 O N n n N n n N N O N O M 44 M 44 0) O .n .-I 0 .0 O In N N N 4.1 OI 1 Man .-4 0 T N• C O 0 n T'1 n 01 .1 NUI n N 0 N n N N N 0) M 44 M 0• M C 0 U U .1 I 10n I Ion N n n 0) . O 1 N N 0 Cl n 01 O O C C N N 1 N N 0 N 10 ..1 ^'1 N N L. N 44 44 M M N U 001 41V Z 0) co H 44 0 0 u1 N m N 0 Hy 0I 110 ..4 N 0 CCll n M i"1 40i H N 1 n n M N en 3 001 C 0 )i N N 0 N N i..4 ..-1 N X 0 O M M M M .0 10 1 ` Y H-:N N CM) r^LI r^>.. N .. a NOI I 1Nn .In-1 ON Cl Cl 0 .0 0 el 't ii4G1 1-1 W 0 0 ),' 44. N 1 n n 4.1 n 1n W 0) 0 N N 0 N Cl 11 1') 0 et el _ 44 M 44 M CO W 0 0 A 11) U 0 0 - In N 10 A 01 I-I 01 1 .4 N 0 Cl CO 0) 0 U Xj N OI h N 4.1 n h O (0 N F N N 0 N .i > .-1 0 44 *4 M M V L1 U 0 0) • 4 40 O 0 In .� In Cl N O10 .�-. .�-, O Ont m .O./ @ 3 N I h n t1 n O1 0 .0 N N 0 N el m .i 60 1.4 N O M • 4R 44 M 0) C 0 s--1 .-1 N .0 8.e 0 0 >4 0 44 10 0 0 In N v 0. C V O1 I In 1n N n 00 Cl I .-i N0 Cl m c0 0 4)) 01 0 . N I n n el h N W V V 4 N N 0 N N N .4 y1 U .0 C M 44 44 M 0 .0 01 H .i 0, 0 N 0 4.. 0 N CO CO 0 0 In .-i el U 0) ClCo Nil s el al I .4 N 0 -4Cl Cl 0) 01 K �( .i 0 . 1.) 10 I h n en n 4.1 A A 11 N N 0 N 0) .0 )4 N 10 V 4, . U 1.1 .-4 0) C M - 4.4 M N .i Co .0 N U 3 N N .. - N 0) a1 01 10 N ..1 Ion N N N 3 N C0 o _ I0 'N N 0 Cl Cl 4. >4 0 01 N •iI 1 n n P1 n In 0.1 .0 H 11 N' N 0 N In H U U N 44 M M• 11 .i H C U 0 0 0 0 0 in N El al,-. C U . I ..41 .1n-1 0 Ont • 0 7 41) 0Cl ON I I n N el h 4.11 U .0 .i A N N N 0MN H C 01 N C M 44 44 0 01 3 0 X E .i p 411 H C C 01 cc 10 in U .i 0I +1 in V IC N e1 C 6 II+ 01 I m e 0 Cl +/ 0) .i o ea Cl 4 4. f-11' I m n 0 N iX0 ..00 0 0 N al J 4 el 44 .i 0) M 43 0 0 0 .0 0 )1 OI 0) N CO .0 1.1 4 .-1 • m ° 0 $ m u ee 0o >4 ?I ?. 0) U of 44 .i >4 .0 N N +1 X H 0 0 10 .i u H y] M +i 11 .iii, 0) U U 0) U F C ~ 0 N 3 4 10 Z 0 10 Z 01 r. M 0) V 100 +I .i . .i •0 0 e0 V t0 .- V .-1 01 i1 0 W1 0 00 U Z U 0) U N 0 4.1 0 U X O) 03 C.i N 0 0 i01 44 c0 01 01 .0 .0 0g F F F W F 0 F .0 F 0 4' y n• x < 4 1�, 0 F U In U U 4 m C C C O 0 0) Or .I N N W O -1 - 1) CO1 01 r 0 > x0nninn r +1 L ro 0 U it U F ..i .i en en AD r ID ro '0 .i .i N W E E .-1 V ~ w zH .0 W L 7 • O h 4) O O O O 'O 'O •• in N N N W W C)U .- .-i .1 .i it u 0 W U 7 0. 7 0 r r r r W it ro .-I .-I N N N N -n 0.1 C) row- N O ro > 4 C.) X 0. 0 • H >. L 1) o ye •.1 W U C)1 N 0 .-I X et ro 0101 CO 0 I ao w F• ci.CC E �- • 0 w C.) • ro ta Cr, W C '0 11 '0 .0 C C -.1 W U en op Y 4.1 E 0 'C >. '-I .-1 CD r) v .0 X N 14 0. W 1.1 O en O r e7 4 b .0 1.0 00 U •E .-1 0 m 0 m O Cr. Cr) .-+ •y N C 7 ••4 4 •4.1 n 0 0 .•moi -nH 01 C0 -- .i .-i � 0 0) 0 3 040 N C W 'C 0 rl co 3 •.+v M y N Q O 0 .-1 C. CO m • 1 •/3.1 E O 0 0 •-4 E •i r N 0 W 7 7 'C N W W X Or) 4 '0 r O h b ami F A O� W '0 d 4) Z '..-4 01 W -4 .-. N O) r) W ai W .0 1) 01 X M 4 0 0 4 H m > F W7 o o. Or 1) • m W 'O 1) m 11 NIz +� w ro 01 CO ro 0 Ci C co O U o+ c X > 4 0 E I m E-1N W - .-i -O4 F A >. 3 0 U m• 4 CO E•1 •n r) N ON H U 4 >4 en in N m -1 W W U r) > m ro 4 Q H Of X 11 C9 01 .0 F U 7 ON r N U m o 4) W O• •0 14 4 m HZ J-1 0 ro .. e0 0, 1b M 9 7 -1 ro N '7 >. C '.4 3 C). ro 411 4 0 0 •r.L . 0 U 3 W Id > r .1 v) 0 7 C O .i W -1 .i W Z ,-D Z U 4 N � 01 0 CO u 114 y 01 ) W C ro .0 w x ro 4 R7 Z U 0 d X W 14 v 4.) 4) U ml H (y H 11) C X .0 W W W an snn ul in all a >.W 14 0 0 40 7 or! Q U 4 W 7 •+ .i .i .1 .i >. m 11 7 7 .0 11 -n E W 7 ro .i en • -1 U W O '0 4.1a C W -in U row- rrrr Z R: O 4l. > N N N N U ro .0 ro ro -.1 > W O CO W O a 0I X w 04 ro O W U C W 01 4 C JJ .0 Z h H U.2 .no O ro X U 0 Z r1 .0 O X W '70 40 10.) U A W E C) H 41 C4 n 1 0 0 0 .0 0. rn 44 C 1Oi 0 m CO 0) -1 W N in O \ X 0 0 O• CON a+ Mbtm'l7 W W FE N all m -i v 0 .11 W W • .i 1 • • .•1 0 rn H ro> V r� .. \i N > 0 001 0 t) .0 W .0 .i U 4 ro3 UroQO Go w 0 m •.i ...4i 0 .i m O 0 r m 4 i 44 0• -1 3CNW0m > 40E-1 • W .i W ..1 U >, sn op .0 -4 .0 -A ro W 0 (1 1) r1 01 eh in 1.1 W t r ro 0 W b .0 C (. Cl --i W e0 0 0 r N 0 3 N Am L Z•. N , X U L .+ in O N 01 0 m .i •••1. L 11• L -i m ... H y N )a 40 .a en Or E• a CK - 0 0) .-I .i N E ro .1 ro 0 -1 • eO-1 0 N .•) e0 0 --E4 > N W >. 7 L E 7 C 01 1) >. 4 0 .0 E C W .i 1a C Z W -44 >, ' i) Wm U > O '0 -4i 0b4U .4 +4 0 0 W -I >,-1 C 41 UU E 0 .-1 01 ro w U -i 0 0 01 1) > •-1 O 4 n 1.1 U '0 r) N 0 > 0 0 0 'C -i W X •-1 W '0 0 0.1 > 0 0 14 0 U .1 CO ate) 0 \ .4 03 W4 r0 in 3.1 U 14 > 1.1.0 P. W 1.4 •-1 CL 03 0 X > 03 .0 ON .0 -1 X '0 W >. U ro ro 4 0 O C .0 0, F ...1 en . 04.11 40 4A ax C Uw •" C 0 70 .I 'O ., 0 01` 01 11 7 '0 0 3 •4 X 0 0, '.4 1J .c R .4'" U 'C 'O w 0 0, . C 1))01 0 '-4 • C U 4 0 0 0 0 0 0) 0 4•1 -A X 0 U E 'u U > ro ro 'O 3 mrrn ro 7 m i1 C co -0 .0 0 01 X 0 0 L .-) 0 ..i .-4 m .0 en v 0 4 W•n W C al C .1 0 01 4 m C.. 4 T --4 W11 - U 1) 0 SA r) 0 '0 0 01 W X W 0 \ X 0 0 -• 0 0.-1 Cr. O 0 -4 C 0, x .0 0 C .0 h N 0 0 .-I .-1 N 1n O ••C4 C Or C' F roW; •- 01 0 en N 4 C 0 'd C 0 u 0 N 0 04 �E C r1 U .i ) 01 .0 .1 'O E 7 O W C .•1E )t) . It U b 44 .IJ im 7 W 0 J ) 0 C .0 o ro W +4 O 4 . 11 4 W C F L .0 W O '0 7 alC ••i W C U > „> 1.1 4 E 1-1 r/ 1a •n 0 •-1 3 H 0 ro 0 C0 X 0 C O. 0 -xF •1 . . 4 0 .- N 1) 1 .. .. i 4) Ca w 0Z W • 0 4 ••>.+ C C C F 44 ro w W 111 a 4 0 W W O 11 .0E >.1Ua 0 0 x d n 4 -401C)EN .. > 11 0. ..-4 4 W ro 3) 1) w E. •'1 E C -1 w .0 V)) 11) 0 f 4.1 ro) 1%) 0 U I-+ 0 U 0 ti 0 H 0 C) Z EDA RESOLUTION 93 - 5 A RESOLUTION FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA, RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 12 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO, LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1 BE IT RESOLVED by the Economic Development Authority for the City of Elk River, Minnesota (EDA) , as follows : Section 1 . - Recitals . 1 . 01 . It has been proposed that the EDA establish Tax Increment Financing District No. 12 within Development District No. 1 . 1 . 02 . The EDA has caused to be prepared a proposed Tax Increment Financing Plan (the Plan) for Tax Increment Financing District No. 12 . 1 . 03 . The EDA has performed all actions by Minnesota Statutes to be performed prior to the establishment of Tax Increment Financing District No. 12 and the adoption of the Plan relating thereto. 411 1 . 04 . The EDA hereby determines that it is necessary and in the best interest of the City at this time to establish Tax Increment Financing District No. 12 and to approve the Plan relating thereto. Section 2 . - Findings for the Establishment of Tax Increment Financing District No. 12 2 . 01 . The EDA hereby finds, determines and declares that the establishment of Tax Increment Financing District No. 12 within Development District No. 1 is intended and, in the judgement of this EDA, its effects will be, to provide an impetus for commercial redevelopment, increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Plan for Tax Increment Financing District No. 12 . 2 . 02 . The EDA further finds, determines and declares that Tax Increment Financing District No. 12 qualifies as an Redevelopment District pursuant to Minnesota Statutes, Section 469 . 174, Subdivision 10. This finding is supported by a report from the City Building Official which is included as an Exhibit to the Plan. 2 . 03 . The EDA further finds that 100% of the parcels in Tax Increment District No. 12 are occupied by improvements which are structurally substandard to a degree requiring 411 clearance before the parcels can be built upon; thereby meeting the standards in Minnesota Statutes, Section 469 . 174, Subdivision 10, paragraph (a) , clause ( 1) . 2 . 04 . The EDA further finds, determines and declares that the proposed development, in the opinion of the EDA, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of Tax Increment Financing is deemed necessary. 2 . 05 . The EDA further finds, determines and declares that the proposed Plan for Tax Increment Financing District No. 12 conforms to the Comprehensive Plan of the City. 2 . 06 . The EDA further finds, determines and declares that the proposed Plan for Tax Increment Financing District No. 12 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 1 by private enterprise. 2 . 07 . The EDA determines and declares that Tax Increment Financing District No. 12 located within Development District No. 1 is hereby established. Section 3. -Adoption of the Plan. • 3 . 01 . The Plan for Tax Increment Financing District No. 12 presented to the EDA on this date, is hereby approved and adopted and shall be placed on file in the office of the City Clerk. Section 4 . - Implementation of the Plan. The Executive Director of the EDA, the City Administrator, and the Finance Director are authorized and directed to proceed with implementation of the Plan, and for this purpose, to negotiate, draft, and prepare and present to the EDA for its consideration all future plans, resolutions, documents and contracts necessary for this purpose. Adopted this 15th day of November, 1993 . Jeffrey A. Gongoll, President ATTEST: Elk River EDA Patrick D. Klaers, Executive Director Elk River EDA