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

Home Browse Search

Elk River takes advantage of new legislation to drive development The Elk River leverages tax increment dollars to incentivize private development Media Contact: Catherine Mehelich- 763-635-1041 ELK RIVER, Minn. -The Elk River Housing and Redevelopment Authority (HRA) is out to boost local construction in the city next year. The agency is seeking proposals under a temporary incentive program enabled by a provision in the 2010 jobs Bill that allows cities to utilize their uncommitted tax increment financing (TIF) dollars to foster private construction or substantial rehabilitation in Elk River with the goals of growing employment and bolstering economic development. Currently, Elk River has at least $100,000 in uncommitted tax increment dollars that it can use by the end of 2011 toward providing grants, loans or subsidies to private companies forjob retention and growth plans or private business investment. Under this temporary law the City of Elk River's Housing Redevelopment Authority (HRA) intends to fund up to $100,000 for new construction or substantial rehabilitation projects. Projects can include Class 1 restaurants, outpatient medical facilities, green manufacturing or renewable energy facilities, and general light industrial or manufacturing. Elk River is located 35-miles northwest of the Twin Cities and in 1997 was designated as "Energy City" by the MN Environmental Initiative as a "host demonstration community for energy efficient and renewable energy technologies", making it a convenient location for green manufacturing and renewable energy facilities. Projects must commence construction byjuly 1, 2011 and result in the creation or retention of jobs. Cathy Mehelich, HRA Executive Director, said that the City hasn't received any specific proposals yet but is distributing the information to several developers to stir interest. Mehelich indicates "It may certainly be the difference between the project occurring now or never, and in Elk River." Selected projects will need approval by the HRA and Elk River City Council. Publicly funded land and buildings are not eligible. The new (temporary) law states the project can be completed anywhere within the City's boundaries, while the old (permanent) law requires the money to be spent within defined, pre-established TIF districts. The state flexibility provides cities an economic development tool to generate economic activity. City staff is exploring potential projects to stimulate job creation. Eligible project criteria can be obtained by contacting the Elk River Economic Development Division at City Hall 763-635-1 041 .