7.4. SR 07-19-1993
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ITEM 7.4.
TO:
River
FROM:
MAYOR & CITY COUNCIL
WILLIAM RUBIN, ED COORDINATOfJ~
JULY 13, 1993
DATE:
SUBJECT: PROPOSED AMENDMENT TO TIF PLANS
NO. 1 AND NO. 3
INTRODUCTION
On July 19, 1993, the Elk River City Council will be asked to
schedule a public hearing to consider a modification to Tax
Increment Financing (TIF) Plans No. 1 and No.3.
BACKGROUND
.
At its July 12 meeting, the Elk River EDA Commissioners
reviewed a proposal from Mr. Dennis Chuba, The Chuba Company,
regarding his redevelopment proposal at East Main Street
between Evans and Freeport Avenues. This proposal is a
continuation of the phased redevelopment project that was
initiated by Mr. Chuba at Evans Avenue and Main Street in
1992. With that project, the Elk River City Council authorized
the use of TIF funds to reimburse the developer for eligible
redevelopment costs as authorized by Minnesota Statutes. TIF
assistance is again being requested for the 1993 redevelopment
project.
As City Councilmembers will recall, TIF funds from Districts
No. 1 and No. 3 were authorized by the City to reimburse Mr.
Chuba for his costs associated with demolition and site
preparation expenses in 1992. The TIF funds were used as a
grant in lieu of creating a new TIF District, and thereby
enabling the EDA-City the ability to "recapture" its investment
into the project. TIF assistance for the 1993 redevelopment
project is estimated at $60,000. Again, the City Council would
access these funds from TIF Districts No. 1 and No.3.
Mr. Chuba is proposing the construction of an initial 10,000
square foot townhouse-condo office building. The project would
be constructed in two phases containing 5,000 square feet
respectively. By way of comparison, the 1992 project contained
6,400 square feet and had a finished market value of $440,000.
Presumably, TIF funds for the 1993 project would be used to pay
for certain redevelopment costs such as the removal of existing
wells, trees, foundations, buildings, and soil corrections,
etc. All of these expenses are authorized by Minnesota
Statutes.
.
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
.
At the EDA meeting, Commissioners voted to recommend that the
City Council conduct a public hearing on this matter. To
initiate this request for TIF assistance, the following
timetable is offered:
July 19 - City Council considers office redevelopment
proposal; sets public hearing to consider TIF Plan
amendment
July 27 - Planning Commission reviews amendment
August 3-10 - Sherburne County Commissioners meeting
August 4 - The hearing notice is published in the Elk River
Star News
August 10 - School District Board meeting
August 16 - City Council conducts public hearing to consider
the amendment to the TIF Plans
August 17 - Amendment to the TIF Plans is filed with the State
Department of Revenue
. ACTION REQUESTED
The City Council is asked
August 16, 1993, to consider
Plans No. 1 and No.3.
to schedule a public hearing for
the proposed amendment to TIF
RECOMMENDATION
I recommend that the City Council schedule a public hearing for
August 16, 1993, to consider the above-referenced amendment.
.
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