4.9. SR 10-18-1993
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ITEM 4.9.
TO:
FROM:
MAYOR & CITY COUNCIL
WILLIAM RUBIN, ED COORDINATO~r.i-
OCTOBER 12, 1993
DATE:
SUBJECT: REQUEST FOR TAX INCREMENT
FINANCING ASSISTANCE (EDA MAIN
STREET REDEVELOPMENT PROJECT)
INTRODUCTION
On October 18, 1993, the Elk River City Council will be asked
to schedule a public hearing to consider a Tax Increment
Financing Plan for Tax Increment Financing District No. 12. A
public hearing to consider the Tax Increment Financing Plan is
requested for November 15, 1993.
BACKGROUND
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The request for tax increment assistance comes from Kjellberg's
Carpet and Interiors, 16862 Highway 10, Elk River, Minnesota.
The company seeks approximately $165,000 in Tax Increment
Financing assistance to support its proposed construction of a
12,000 square foot (6,000 square feet per floor) retail
building on the EDA Main Street Redevelopment site. If
approved, tax increment funds would be used to reimburse the
company for extraordinary site preparation costs associated
with this site.
This request was considered by the
Development Authority at its October 11th
authorized the following:
Elk River
meeting.
Economic
The EDA
- The preparation of a Tax Increment Financing Plan.
- The scheduling of a public hearing on November 15, to
consider the TIF Plan.
- A recommendation to the City Council for the scheduling of
a public hearing on the TIF Plan.
- A second EDA public hearing on November 15, regarding the
proposed sale of the redevelopment site to Kjellberg's
Carpet.
The EDA is
district".
would last
funds would
proposing the creation of a "redevelopment TIF
Staff estimates that the Kjellberg TIF district
12 to 13 years, during which time tax increment
be collected for a period of 10 to 11 years.
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To finance the estimated $165,000 in site preparation costs, a
privately-placed tax increment bond will be necessitated.
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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Increments collected over the 10 to 11 year period would be
used to retire the TIF bond.
The proposed timetable to complete Kjellberg's request for TIF
assistance is as follows:
October 18 - city Council sets public hearing to consider TIF
Plan; TIF Plan is sent to School District and
County Board.
October 26 - School Board meeting.
October 28 - Planning Commission reviews TIF Plan.
November 2 - County Board meeting.
November 3 - Public hearing notices published in the Star
News.
November 15 - EDA conducts public hearing and adopts TIF Plan;
EDA conducts public hearing on the sale of the
redevelopment site.
November 15 - City Council conducts public hearing on TIF Plan.
ACTION REQUESTED
The Elk River City Council is asked to schedule a public
hearing for November 15, 1993, to consider a Tax Increment
Financing Plan for Tax Increment District No. 12.
RECOMMENDATION
I recommend that the City Council schedule a public hearing for
November 15, 1993, to consider the above-referenced TIF Plan.