3.1. SR 02-14-1994
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Ilk River
ITEM 3. 1.
MEMORANDUM
TO: MAYOR AND CITY COUNCIL
FROM: WILLIAM RUBIN, ECONOMIC
DEVELOPMENT COORDINAT~Y1-
DATE: FEBRUARY 9, 1994
SUBJECT: TIF REIMBURSEMENT REQUEST
(MAIN STREET & FREEPORT
AVENUE PROJECT)
INTRODUCTION
Mr. Dennis Chuba of the the Chuba Company requests a tax increment financing (TIF)
reimbursement for the eligible expenses incurred at the Main Street and Freeport Avenue
office townhouse project. The amount of the request is $24,161.82.
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BACKGROUND
On August 16, 1993, the Elk River City Council approved an amendment to Tax
Increment Financing Plans No.1 and No.3. The plan amendment enabled the City to pay
for certain redevelopment costs such as demolition, foundation removal, soil boring and
analysis, compaction, site preparation, and utility extensions, etc. associated with the
office redevelopment project at Main Street and Freeport Avenue.
To support this project, Mr. Chuba requested TIF assistance in the amount of $60,000.
The Council approved a budgetary amendment to Plans No.1 and No.3 in the amount of
$50,000 for Mr. Chuba's project. Subsequently, the Elk River Housing and
Redevelopment Authority (lIRA) agreed to fund up to 50% of the demolition and site
preparation costs - up to maximum contribution of$25,000.
Staff is in receipt of invoices totaling $24,161. 82 for various eligible expenditures
associated with this redevelopment project. In addition, the developer has provided staff
with lien waivers which provides evidence that the developer has paid the subcontractors.
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The City Council can also expect another TIF reimbursement request for costs associated
with the foundation removal of the second residence-office and its detached garage at 317
Main Street.
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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ACTION REQUESTED
The City C01IDCil is asked to authorize a TIF reimbursement payment to the Chuba
Company in the amount of$24,161.82.
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