4.2. SR 04-06-1998 - Laserfiche WebLink

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Final Steps in Process It is important for the Council to be aware of the following issues with regard to this TIF District No. 18: The City Council is only being asked to approve the Tax Increment Plan at this time. Such Plan as attached to this report, details the budget for this TIF District which includes a line item amount for the Morrell request. The TIF Plan DOES NOT lay out the mechanics of providing the assistance or EVEN GUARANTEE THAT SUCH ASSISTANCE WILL BE PROVIDED to the Morrells. This is accomplished within the Development Agreement. The primary purpose of the TIF Plan is to establish the District which will then allow the EDA the "option" of providing tax increment assistance to the business. For the purposes of this public hearing the Council is taking public input and passing a resolution making certain findings of fact that are required by state statute to identify and establish a tax increment district. · The EDA will consider a Development Agreement with the Morrells at either its April or May meeting. This Development Agreement establishes the mechanics of providing assistance to the project. The City Council always has the option of denying approval of the TIF Plan if they are not in agreement with how the tax increment assistance is to be provided. This may not be necessary however, since 4 of 5 Councilmembers are represented on the EDA. In this case the major issue is not so much the amount of assistance, as it is how much is to be provided up front versus over time. The draft Development Agreement between the Morrells and the Economic Development Authority currently has included the details of the final offer which was made and approved by the EDA at one of its past meetings late last year. This "final offer" is for the provision of $300,000 of tax increment assistance, $150,000 of this amount up front and the other $150,000 over time. In addition, the Development Agreement details that the current Morrell site at the corner of Jackson and School Street will be cleared of all buildings (demolished) and prepared for new development by June 2000. These are the two major issues that are laid out within the Development Agreement. · One final significant issue which will be included in the Development Agreement relates to the estimated final market value of the new Morrell project. The Morrell's latest discussion with the building department has been that they are attempting to significantly reduce the cost of construction of the facility. Should