2.0.-3.0. EDSR 10-25-1993 OCT 21 ' 93 13 : 18 FROM AIRPORT COMMISSION PAGE . 002
10/21/93 13:37 ':4417423 CIIY/ELK RIVF X002
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• . ELK R •
IVER,ECONOMIC DEVELOPMENT AUTHORITY ' •
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• •SPECIAL MEETING OF THE ELE •RIVER• •• • •
' E• CONOMIC, DEVELOPiSNT ATTIMORIT7 .
• I, • JEFFREY.A. .GOiidOLL, Fra&Ldent of the .Economic Development •
' . • .•Authority for the City of Elk' River, am reque.eting:. a:•spacial .
zaeetins of••the Authority for Monday,• October 25, 1993 .at
5:45. p.mr , to:be'held .at..the •Elk River •City Hall,••13065 Orono • .
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Parkway,:.Elk River, 'Minnes.bta'. • •
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The purpose of the special •meeting is to: • .• -
• a•..- Consider a' request' from •the• Bruce Company 'for an. exclusive .,
option on the'.EDA' Main' Street Redevelopment site, legally . •
. described As the West' 71.7 feet•;of'Lot 15,. Auditor's .
Subdivision No.. ••4• (PID• No. 75:-40.4-,0150 and 7'5-404-0151) ; .
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' : •b. Consider a •staff 'recommendation to refund Tax Increment .
Finaiice: appiicatioit. fees (less' expenses)• on a ease •by case .
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.;Dated this..• -2.%'7.— '.day 'of, Octoob'er,. 1993 ' • •
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Elk 'iv_ conomic i evetopment Autho• rity •
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P.O.•Boz 490 13065 Orono Parkway 0, Elk River,•MN 55330-1743 • (612)441-7420 •'Fax (612)441=7425
• • . Equal,O Ortunity'Hqusing and Equal Opportunity Employment .
•OCT 21 '93 12:38 4417425 PAGE.002
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
TO: ECONOMIC DEVELOPMENT AUTHORITY
FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMEMT COORDINATOfI( f�1
DATE: OCTOBER 21 , 1993
SUBJECT: AGENDA MEMO FOR OCTOBER 25 , 1993 SPECIAL MEETING
2. REQUEST FOR EXCLUSIVE OPTION
At its meeting on October 18th, City Councilmembers heard at
presentation by Ms . Linda Fredrickson, Marketing Images , 15185
197th Avenue N.W. , Elk River. Ms . Fredrickson made a presentation
to the Council regarding her dream for a dinner theater on the
EDA Main Street redevelopment site. Following this presentation,
the City Council scheduled a public hearing for December 13,
1993 , to consider the Tax Increment Financing Plan for Tax
Increment District No. 12 (the Kjellberg retail facility
project) .
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Following additional discussion on the. Kjellberg request and
the Fredrickson presentation, it was stated by the City Council
that the Bruce Company, the developer of the Kjellberg project,
did not possess exclusive control on the EDA property. As a
result, it would be possible for the EDA City to hear other
development proposals on the EDA site . To remedy this , Mr.
Chris Bulow of the Bruce Company, has requested an exclusive
option on the EDA site . This will allow the developer to
control the property as the redevelopment project makes its way
through the review process , etc .
ACTION REQUESTED
The Elk River EDA is asked to grant an exclusive option on the
EDA Main Street Redevelopment site to the Bruce Company; provided
that the Bruce Company agrees to give up said option if, say,
the TIF request for District No . 12 is denied.
4 . REFUND OF TIF APPLICATION FEES
In 1991 , the Elk River City Council , its EDA, and its HRA
approved a tax increment financing policy for the City of Elk
River (preamble attached) . The policy requires a $5 , 000 non-
refundable application fee. The fee was subsequently revised
in 1992 to equal ten percent of the tax increment requested up
• to a maximum fee of $5 , 000 .
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
• Given the circumstances' surrounding request for TIF District
No . 12, staff (that is , the EDA Executive Director and ED
Coordinator) are recommending that in event the upcoming TIF
request is denied, the application fee (less expenses) be
refunded.
Prior to 1991 , TIF projects required a high level of out of
pocket expenses . This is due in large part to the TIF plan
being prepared externally. Recently, the City staff has taken
on this function, and generally, no involvement by consultants .
is required. Out of pocket expenses are limited to public
hearing notices . The bulk of the administrative expenses
revolve around the preparation of a contract for private
development. With TIF Plan No. 12, this activity will likely
not occur until Council approval of the TIF request.
ACTION REQUESTED
The EDA is asked to refund Tax Increment Financing application
fee (less expenses) on the TIF No. 12 in the event the request
is denied. If TIF No. 12 is approved, the fee would be usedto
cover additional expenses .
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KJELLBERG•S ELK RIVER 612 441 8002 P. 01
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TAX INCREMENT FINANCING POLICY
CITY OF ELK RIVER, MINNESOTA
WHEREAS, Minnesota Statutes authorizes the use of Tax .
Increment Financing to assist communities with its
development or redevelopment efforts; and,
WHEREAS, Tax Increment Financing is a financing tool that
enables communities to use the increase in property
taxes from a completed development or redevelopment
project to pay for certain qualifying improvements;
and, .
WHEREAS, qualifying improvements may include site
acquisition costs, land write down, demolition, site
preparation, soil correction, relocation costs,
. interest reduction costs, housing to low and moderate
income persons and families, housing for the elderly,
or the construction of public infrastructure; and,
WHEREAS, there is a decline of Federal and State programs
available to cities for urban renewal and economic
development.
• NOW, THEREFORE, the City of Elk River, its Economic Development
Authority and its Housing and Redevelopment Authority
do hereby resolve:
1 . That Tax Increment Financing is a necessary tool
• to encourage private sector investment to
stimulate economic growth and redevelopment
initiatives in the community.
2 . That there exists a need to develop a general
Policy Statement to review requests for Tax
Increment Financing.
3 . That the attached Policy Statement will serve as
a guideline for reviewing requests for Tax
Increment Financing.
CITY OF ELK RIVER•
BY: / �.
Its Mayor
ELK RIVER EDA
BY: -,
I . - � - :ent
ELK 1,U3. R HRA
B /
c
Its Chairman