8.4. SR 06-20-1994
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ITEM 8.4.
MEMORANDUM
TO:
MAYOR & CITY COUNCIL
DATE:
WILLIAM RUBIN, ECONOMIC
DEVELOPMENT COORDINATOJ.J Vl-
JUNE 16, 1994
FROM:
SUBJECT: TIF REIMBURSEMENT REQUEST
FROM THE CHUBA COMPANY (MAIN
ST AND FREEPORT AVE PROJECT)
INTRODUCTION
Mr. Dennis Chuba of The Chuba Company requests a Tax Increment
Financing (TIF) reimbursement for eligible expenses incurred at the Main
Street and Freeport Avenue office/townhouse project. The amount of the
request is $25,838.18.
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BACKGROUND
In August, 1993, the Elk River City Council approved an amendment to Tax
Increment Financing Plans No. 1 and No.3. Although The Chuba Company
requested $60,000 in TIF assistance for this project, the City Council
approved a $50,000 amendment to Plans No.1 and No.3. The amendment
enabled The Chuba Company to receive up to $50,000 for certain
redevelopment costs such as demolition, foundation removal, soil boring and
analysis, compaction, site preparation, etc., associated with the above-
referenced project. The Elk River Housing and Redevelopment Authority
(HRA) subsequently agreed to fund up to 50 percent of the demolition and
site preparation costs - up to a maximum contribution of $25,000.
On February 17, 1994, the City Council approved an initial TIF
reimbursement payment to The Chuba Company in the amount of
$24,161.82. The latest request brings the City/HRA grant contribution up to
the maximum of $50,000.
The writer of this memo is in receipt of invoices exceeding $25,838.18 for
various eligible expenditures associated with this redevelopment project. In
fact, the total reimbursement sought is closer to the original request of
$60,000 than the approved $50,000 amendment. To support the
e reimbursement request, The Chuba Company has provided the writer with
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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lien waivers which provide evidence that the developer has paid the
subcontractors.
ACTION REQUESTED
The City Council is asked to authorized a TIF reimbursement payment to
The Chuba Company in the amount of $25,838.18.
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