7.6. SR 08-21-1995*IiEM 7.6.**
ELK RIVER ECONOlV~~~~YT~PMENT AUTHORITY
TO: Mavor& City,Council
FROM:. William Rubin
EDA Executive Directa~ l~
DATE; August Zl, t995 ®~
SUBJECT: ` Consider a Request for a Public Hearing to
Establish a New Tax Increment Financing
District
('TL Feeding Systems Project).
Introduction
At its August 21_meeting, the- Elk River City Council will be asked to schedule a public
hearing. to consider a Tax Increment Financing Plan for the creation of a. new Tax
Increment Financing District. Apublic-hearing to consider the Tax Increment Financing
Plan is requested for September 18, 1995::
• Background
The request for tax increment assistance. comes from 'IZ: Feeding Systems, Inc., 8720
Wyoming ..Avenue North, Brooklyn Park, MIN. TL Feeding Systems designs and
manufactures vibratory and centrifugal feeding equipment .and .systems that orient various
products .for assembly and packaging: Primary customers are associated with the food
:.sector, high technology, medical sector, industrial sector, and original equipment
manufacturers: (OEM). '
TL Feeding seeks $150,000 in`tax increment financing assistance to support its. proposed
15,000 square foot office and production facility on a three (3) .acre site in the. Country
Crossing Business- Center (Business Park). Tax increment funds would be used to "write
down" the cost of the`site and for general site development and site. preparation costs,
associated: with this project. The 15,000 square foot facility will likely be constructed of
pre-cast tip-up panels, consistent with -the .design tandards -of the 19944 Business .Park
Ordinance. In addition, the 3 acre parcel will. readily accommodate future expansions. It
is estimated that the project will have a finished market value (land and building) of
$62`,000.
The T7 Feeding 'I'IF request was considered by the Elk River Economic Development
Authority. at its August ,8 meeting. The E17A voted to authorize the preparation of a Tax
• Increment Financing Plan and has scheduled a public hearing. on this matter;for September
11,.1995. In the same motion, the EDA also. voted to recommend that the City Council
also schedule a public hearing on this matter.
P.O. Box 490 • .13065 Orono Parkway ~ Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (6I2) 44t-7425
Equal Opportunity Housing and -Equal Opportunity Employment
The EDA is proposing the creation. of an "Eeonomia Development TIF District": Initial
projections indicate that the City/EDA will .collect its first increment (new property tax)
-from -TL's :finished building in 1998. Increments .will be collected from .1,998 through
2003, inclusive to -repay the costs associated with.the TIF grant for land write-down and
site preparation costs.....
Another consequence of a 'new TIF district is that' of a local government -..aid and
homestead and agricultural credit assistance (LGA/HACA) reduction: As with the recent
Neos/Mowry TIF request, it is to the advantage of the CtyBDA to provide fora
"qualifyinglocal contribution." of 10 percent per year-from 1998 through 2003, inclusive.
,Below is a proposed time table o complete TL Feeding's request for TIF assistance:
August 21- City Council sets Public. Hearing to .Consider TIF Plan
August 22- School Board Meeting; Review and Comment`
August 22 - Planning Commission Reviews TIF Plan
August 30 - EDA' TIF Hearing Notice Published in the Star News
September 5/6 - County Board Meeting; Review and Comment
• S tember 6 - C•
ep n3' Council. TIF Hearuig Notice Published in the Star News.
September 11 - EDA Conducts Public Hearing on TIF Plan
.September 18 - City:Council Conducts Public Hearing on TIF Plan
Action Requested
The Elk River City Council is asked to schedule a public hearing for September l8, 1995
to consider. a Tax .Increment Financing Plain for a new Tax .Increment Financing ..District
(District No. 1.3 ).
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