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T ll� <br />ITEM 4.3. <br />MEMORANDUM <br />TO: Mayor & City Council <br />Ver <br />FROM: William Rubin, ED Coordinat�Ja' <br />DATE: December 21, 1995 <br />SUBJECT: Public Hearing on Modification to Tax <br />Increment Financing Plan No. 3 <br />Introduction <br />At its November 20 meeting, the Elk River City Council authorized a public <br />hearing for December 21, 1995, to consider a modification to Tax Increment <br />Financing Plan No. 3. The proposed modification will amend TIF Plan No. 3 <br />to authorize tax increment expenditures that are not currently referenced in <br />the Plan. <br />Back - 'round <br />Tax Increment Financing District No. 3 is considered an economic <br />development district that was created in 1986 by City Council action. The <br />geographic boundaries of District No. 3 reflect the southerly portion (or the <br />second phase) of the Elk River Mall area, including the low- to moderate - <br />income apartments located in the southwest corner of Freeport Avenue and <br />School Street. District No. 3 will be decertified by the City Council prior to <br />the end of 1995. As a result, property taxes paid in 1996 will go to the county <br />for redistribution pursuant to the respective levies of the local taxing <br />jurisdictions. <br />Although debt service obligations still exist on the water tower project, it is <br />estimated that approximately $550,000 will be available from the District <br />No. 1 and District No. 3 account for other projects. Hence, a modification to <br />Plan No. 3 was initiated. The proposed modification identifies numerous <br />eligible expenditures that are authorized by the Tax Increment Statute. <br />These proposed expenditures are inherently tied to two of the three broad <br />categories that resulted from workshops in June and in August of this year. <br />The workshops were conducted by the Elk River EDA; the lone <br />Councilmember that is not an EDA Commissioner also attended and <br />participated in the workshops. These two categories are: a) Business Park <br />and Industrial Park Activities, and b) Downtown Redevelopment. <br />13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425 <br />