7. EDSR HANDOUT 12-13-2010 - Laserfiche WebLink

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EDA/HRA Executive Director's Report December 13, 2010 Page 3 of 4 Business Updates New Businesses/Ownexships - Relocations/Expansions - Cymbet Corporation anticipates an announcement this week on an expansion of contract manufacturing with a semiconductor foundry located in Texas. The company indicated their intentions to maintain and grow Theo research & development and corporate offices in Elk River. Elk Rivet Axea Arts Alliance The E&~A has recently indicated interest in expanding their pxogxaxxuxung with a larger facility. ERAAA is currently exploring the acquisition of the First National Bank of Elk Ricer property. Staff will be attending a discussion about a regional arts center concept on December 14`''. Refnindex of New Temporary Funding Resources Attached is a copy of a recent press release intended to stimulate interest in the City's set- aside TIF program. In June 2010 the HRA and Council authorized setting aside approximately X100,000 of available tax increments from an existing TIF district to provide financing assistance that consists of new private new construction ox substantial renovation for one of the following uses: an outpatient medical clinic, Class I restaurant, green manufacturing ox other renewable energy facilities, ox general light industrial ox manufacturing. The legislation includes a condition that the project cotmnences before July 1, 2011. Staff has been monitoring potential opportunities as a result of 2010 State Stunulus-Jobs Law that added some flexibility to the use of Tax Increment Financing fox a limited period of tune in order to stunulate consruction and job creation. If Coimxussionexs have any ideas please contact staff to discuss. The Jobs Law included provisions to temporarily expand the use of TIF economic development districts fox any use (previously luxrited to manufacttuing), including retail, single family housing, market rate apartments, medical facilities and office buildings. This provision is also temporary fox projects that begin by July 1, 2011. The Jobs Law also created a temporary Compact Development TIF District that provides some greater flexibility than the traditional Redevelopment District and stringent blight standards. This authority to approve this tool expires June 30, 2012. Transit Improvement Axea Application In April staff submitted an application to DEED to designate the 2-mile radius of Northstar Commuter Rail Station and 171" Focused Axea as a Transit Improvement Axea. While no funding currently exists fox TIAs, the designation allows fox greater positioning fox future funding opportunities and marketing leverage. In tnid-November 2010 the Ciry received notice that its application was approved by DEED. This TIA designation provides the opportunity to apply fox loan fmancing for eligible projects in the TIA, if and when funding becomes available. In the interim the TIA designation provides a unique marketing advantage for the 171st Focused Axea. N:\Departments\Community Developmen[\Eeonomic Development\EDA to move\Agenda\Year2010\Esec Dir report 12.13.1Qdoc