4.2. SR 08-19-2002MEMORANDUM
Item 4.2.
TO:
CC:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Economic Development Authority
Catherine Mehelich, Director of Economic Developme~,~/~/
August 19, 2002
Consider Property Tax Abatement for Elk Path, LLC
Professional Office Building Project
Background
The City Council held a public hearing on June 10, 2002 regarding the Tax Rebate Financing
(tax abatement) application by Elk Path, LLC for the construction of a professional office
building.
Following the public heating the City Council held a joint meeting on June 24, 2002 with the
Economic Development Authority to discuss policy issues related to the use of tax rebate
financing for office developments. It was the consensus of the Council and EDA that the
Elk Path, LLC project be evaluated based on the city's amended Tax Rebate Financing
policy.
Analysis & Recommendation
The proposed Elk Path, LLC professional office building project does not meet the city's
new minimtan requirement for 50% of the available office space to be pre-leased.
Since the Elk Path TJ,C project, as proposed, does not meet the minimum requirement staff
recommends the application be denied. The project may be reconsidered once 50% of the
space is pre-leased, or the project scope is revised.
S:\Eda\TAXABATE\ElkPathLLC\ 8-19-02.doc