RES 18-11v.City of Elk River
ver City Council
Resolution 18-11
A Resolution of the City Council of the City of Elk River Denying Tax
Increment Assistance for Elk Mv9err Lodge & Residential Suites, LLC
WHEREAS, the City of Elk River, Minnesota (the "Cite is authorized by Minnesota
Statutes, Sections 469.174 to 469.1794 (the "TIF Act's to grant a tax increment assistance in
accordance with the TIF Act;
WHEREAS, the City has reviewed a proposal by Elk River Lodge & Residential Suites, LLC
(the "Developer'D to utilize a portion of the tax increments to be generated by the proposed
construction of an approximately 40 -unit rental housing facility (the "Jackson Hills Project") to
finance interior and exterior renovations to the Elk River Lodge located within the City (the
"Lodge Improvements'D in connection with a conversion to residential rental units;
WHEREAS, (i) the Lodge Improvements do not generate tax increments sufficient to
finance the requested amount of assistance in the application as a portion of the Lodge
Improvements have previously commenced with permits pulled, thus negating incremental
value, and (ii) the proposed use of tax increments for the Lodge Improvements does not meet
the but -for test under the TIF Act because a portion of the proposed Lodge Improvements are
required to bring the Elk River Lodge into compliance with the City's zoning code and
construction on a portion of the Lodge Improvements has already commenced;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows:
The Council denies the Developer's application and declines to provide assistance for
the Lodge Improvements.
2. This resolution is effective on the date hereof and staff is directed to return any
unspent portion of the Developer's deposit for costs after applying such deposit to
costs incurred by the City through the date hereof.
Passed and adopted this 206 day of February 2018.
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Tina Allard, City Clerk
j J. Dietz, &Zyor
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