3.0. & 4.0. SR 06-10-1996~ity of
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Pat Klaers, City Adr~inistrator
June 17, 1996
TIF No. 15 Public Hearing and
Developer Contract
ITEM 3. & 4.
I made a mistake in the public hearing notice for this District. The public
hearing notice should have been published on May 29, 1996, but did not get
published until June 5, 1996. Prior to this public hearing notice getting in
the paper, the error was noticed and the public hearing date was changed to
June 17 in order to meet the ten day notice requirement. Accordingly, the
City Council public hearing cannot be held on June 10 and must be held on
June 17, 1996.
The background material distributed in the EDA packet on TIF No. 15, the
TIF application, and the TIF Plan should be brought to the June 17, 1996,
Council meeting. The Contract between the EDA/city and McChesney
Cabinets will be sent out prior to the June 17, 1996, meeting.
Recommendation
It is recommended that the City Council table the public hearing and
consideration of the developer contract until the June 17, 1996, meeting.
council\tif15hrg
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
ITEM 3.
.ity of
'Vel'
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
~ tn eKlla01 r~ 9C6i t Y~nistrat°r
Public Hearing on Tax Increment
Financing Plan for Tax Increment
Financing District No. 15 (McChesney
Cabinets)
Introduction
At its May 13, 1996, meeting, the City Council authorized a public hearing
for June 10, 1996, to consider a TIF Plan for TIF District No. 15 for
McChesney Cabinets.
Background
Please see the attached material that was provided to the EDA on TIF No. 15
for McChesney Cabinets. This material should provide the City Council with
all the background information necessary on this company and proposed
District.
Action Requested
After conducting the public hearing on the TIF Plan for TIF District No. 15,
the Council is requested to adopt the attached resolution. Approval of the
TIF Plan is subject to the execution of Contract for Private Development.
This Contract will be presented to the Council following the public hearing on
the TIF proposal.
If this TIF Plan is approved, it is also recommended that the City Council
approve the use of funds generated through the land transaction between the
City/EDA and the School District for the Industrial Park lot as the qualifying
local contribution of 10 percent. This contribution is recommended instead of
selecting the local government aid loss option.
councilXtifl5
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
RESOLUTION 96 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION FOR THE CITY OF ELK RIVER RELATING TO THE
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT
NO. 15 AND THE ADOPTION AND APPROVAL OF THE TAX
INCREMENT FINANCING PLAN RELATED THERETO, LOCATED
WITHIN DEVELOPMENT DISTRICT NO. 1
BE IT RESOLVED by the City Council (the Council) of the City of Elk
River, Minnesota (the City), as follows:
Section 1. - Recitals.
1.01. It has been proposed and adopted by the Economic Development
Authority for the City of Elk River, Minnesota (the EDA) that the EDA
establish Tax Increment Financing District No. 15 within Development
District No. 1 pursuant to and in accordance with Minnesota Statutes.
1.02. The EDA has caused to be prepared, and this Council has
investigated the facts with respect thereto, a proposed Tax Increment
Financing Plan for Tax Increment Financing District No. 15 (the Plan).
1.03. The EDA and the City have performed all actions required by
law to be performed prior to the establishment of Tax Increment Financing
District No. 15 and the adoption of the Plan relating thereto.
1.04. The Council hereby determines that it is necessary and in the
best interest of the City at this time to establish Tax Increment Financing
District No. 15 and the adoption of the Plan relating thereto.
Section 2. - Findings for the Establishment of Tax Increment
Financing District No. 15.
2.01. The Council hereby finds, determines, and declares that the
establishment of Tax Increment Financing District No. 15 located within
Development District No. I is intended and, in the judgement of this Council,
its effects will be, to provide an impetus for commercial and industrial
development, increase employment, and otherwise promote certain public
purposes and accomplish certain objectives as specified in the Plan for Tax
Increment Financing District No. 15.
2.02. The Council further finds, determines, and declares that Tax
Increment Financing District No. 15 qualifies as an Economic Development
District pursuant to Minnesota Statutes, Section 469.174, Subdivision 12.
2.03. The Council further finds, determines, and declares that the
proposed development, in the opinion of the Council, would not occur solely
through private investment within the reasonably foreseeable future and,
therefore, the use of Tax Increment Financing is deemed necessary.
2.04. The Council further finds, determines, and declares that the
proposed Plan for Tax Increment Financing District No. 15 conforms to the
Comprehensive Plan of the City.
2.05. The Council further finds, determines, and declares that the
proposed Plan for Tax Increment Financing District No. 15 will afford
maximum opportunity, consistent with the sound needs of the City as a
whole, for the development or redevelopment of Development District No. 1
by private enterprise.
2.06. The Council determines and declares that Tax Increment
Financing District No. 15 located within Development District No. I is
hereby established.
Section 3. - Adoption of the Plan.
3.01. The Plan presented to the Council on this date, is hereby
approved and adopted and shall be placed on file in the office of the City
Clerk.
Section 4. - Implementation of the Plan.
The City Administrator and Assistant City Administrator are authorized and
directed to proceed with the implementation of this Plan, and for this
purpose, to negotiate, draft, prepare, and present to the Council for its
consideration, all future plans, resolutions, documents, and contracts
necessary for this purpose.
Adopted by the City Council of the City of Elk River, Minnesota, this 17th
day of June, 1996.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk
~ity of
iver
ITEM 4.
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Pat Klaers, City A~nistrator
June 10, 1996 I/' '
Development Contract
Whenever a TIF project is approved, the city enters into a private
development contract between the applicant and the city. This contract
outlines the terms and conditions of the agreement. In general, this
agreement indicates that the city will pay back taxes up to the amount of
$35,000. In turn, Mr. McChesney of McChesney Cabinets will construct a
10,000 square foot facility valued at a minimum of $300,000 and will hire two
new employees over the next three years. Other legal language will be
incorporated into the document to protect both the city and Mr. McChesney.
The contract is not included in this packet and will be sent out next week. It
is anticipated that the City Council will hold a public hearing on the TIF
Plan on June 17th and consider the contract following that public hearing.
council\pdcontct
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425