5.12. & 5.13. SR 12-18-1995 - Laserfiche WebLink

Home Browse Search

ITEM 5.12 . ity of MEMORANDUM lk TO: Mayor & City Council River FROM: William Rubin, ED Coordinatop DATE: December 18, 1995 SUBJECT: A: Modification to Resolution 95 -32 AND 5.13. (TIF District No. 12) B: Contract for Private Development (TIF District No. 12) C: Tax Increment Revenue Note Introduction At its meeting on December 18, 1995, the Elk River City Council will be asked to adopt a resolution which modifies and expands upon the above - referenced resolution. In addition, the City Council will be asked to execute a development agreement by and among the City of Elk River, its EDA, • Breagan Corporation, and Neos, Inc. An integral component of the development agreement is a Tax Increment Revenue Note and the final requested action is to authorize this Note as of December 18, 1995. Background Following a public hearing on June 19, the Elk River City Council approved a tax increment financing request relating to the construction of a 12,000 square foot precision machining facility in the McChesney Industrial Park. All parties agree that it is beneficial to execute a contract for private development under the existing TIF rules and regulations. Execution of a development agreement also enables the county auditor to certify the legal description as being in a TIF District. In approving the TIF Plan, the City Council adopted Resolution 95 -32 which now requires some modifications. The modifications relate to an additional finding that is necessary for new districts seeking certification after the last legislative session. In addition, the modification eludes to the election by the city/EDA to make a qualifying local contribution in lieu of a local government aid/HACA reduction associated with the establishment of TIF District No. 12. This election is consistent with previous discussion at the City Council and EDA level. 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425