3.11. SR 10-21-1996**ITEM 3.11.**
r~ity of
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Paul T. Steinman, Director of Economic
Development
October 21, 1996
TIF District No. 16 - King and Main
Introduction
At its meeting on Monday, October 14, 1996, the HRA approved a motion
requesting the City Council to call for a public hearing to be held on January
27, 1997, to establish Tax Increment Financing District No. 16. Attached for
your information is a schedule for the establishment of TIF District No. 16.
Background
As you are aware, the HRA purchased the King and Main properties in June,
1996. The HRA has received a Letter of Intent to redevelop this site from
The Chuba Companies. Dennis Chuba intends to redevelop the site into an
office type building and has offered the HRA $225,000 for purchase of the
property after the site has been cleared. Mr. Chuba indicated in his Letter of
Intent that the finished market value of the project will be between $800 and
$1 million.
The HRA intends to utilize tax increment dollars to recoup the costs involved
with purchase and demolition of buildings on the site. The total cost of
purchase of the property was approximately $425,000. After closing with the
developer next July, 1997, and receiving payment of $225,000, the HRA will
have invested in this site approximately $200,000 plus demolition costs. It is
expected the HRA will recoup these costs through tax increment dollars
generated from the increased market value of the properties.
Action Requested
Staff recommends that the City Council call for a public hearing to be held at
6 p.m. on January 27, 1997, to establish Tax Increment Financing District
No. 16 in the City of Elk River.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
DRAFT
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
AND THE
ELK RIVER CITY COUNCIL
FOR THE
ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 16
(a redevelopment district)
Schedule
October 14, 1996
HRA requests City Council to call for a public hearing
October 21, 1996
City Council calls for a public hearing to be held on
January 27, 1997 to establish Tax Increment Financing
District No. 16
October 28, 1996
Letter sent to County Commissioner of the area within
which the Tax Increment Financing District No. 16 is to be
created (at least 30 days prior to publication of public
hearing notice)
November 4, 1996
Complete draft of plans
November 26, 1996
Planning Commission finds tax increment plan to be in
compliance with the comprehensive plan
November 26, 1996
Plan forwarded to School District and County Board (at
least 30 days prior to public hearing)
December 16, 1996
Send public hearing notice and map to local paper
January 1, 1997
Date of publication of hearing notice and map (at least 10
days but not more than 30 days prior to public hearing)
January 27, 1997
HRA approves plan
January 27, 1997
City Council holds public hearing on the establishment of
Tax Increment District No. 16 and passes resolution
approving plan
July 2, 1997
Send plan to County for certification
TI16sche
DRAFT