EDSR INFORMATION #1 11-13-2012 - Laserfiche WebLink

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"I think cities got some projects lined up that were slow to develop in a tough economy," said Phillips, whose departure as DEED commissioner was announced Oct. 18. Brian Hanson, president and CEO of Duluth-area economic development group Apex, summed it up: "What this represents is a hell of a lot of activity that wouldn't have happened." A hunger for development A project that might seem foolish at first may have made sense at the local level. Take the Pizza Ranch at 19141 Freeport St. NW in Elk River. Sauk Rapids-based �� `- P y�'r� �" '� � � T °fit �, � Alliance Building Corp. renovated a former Movie Gallery video-rental store for$1.87 million. iff4iik, 4 The city economic development director, rs Annie Deckert, says it's hard for a ° � restaurant to start in Elk River because Ff water and sewer access charges can run St. Paul beneficiaries of TIF financing also include in the tens of thousands of dollars. the Schmidt Brewery. (Staff photo: Bill Klotz) "It's something our community has wanted forever," Deckert said of restaurants. A$90,000 loan with a 2 percent interest rate made the difference for the local Pizza Ranch franchisee. Elk River wanted something done with the old video store site because it detracted from the nearby Elk Park Center at 19112-19216 Freeport St. NW, which includes a Cub Foods, OfficeMax and Furniture Mart among its tenants. The Pizza Ranch is also providing four full-time jobs paying $25,000 to $70,000 a year, and 70 part-time jobs paying $7 to $11 per hour, Deckert said. Elk River was not alone when it came to funneling money toward shopping and dining options. Nearly 40 percent of the $35.9 million in TIF spent statewide appears to have gone to retail,food and hospitality projects. Shoreview officials were more Asian-Latin fusion in their tastes when they decided to grant $845,000 for Minnetonka-based Stonehenge USA's $7.2 million, 24,034-square-foot Shoreview Retail Center, which includes a Leeann Chin and Chipotle among its tenants. Stonehenge could get an additional $700,000 in a grant if it lands a high-end grocery retailer. Shoreview assistant city manager Tom Simonson argues that it was about community"values and desires."The desire was for"more dining and retail services options" (egg rolls and burritos, for example), which then added to the tax base and provided some jobs. Shoreview is indirectly giving up to $214,000 to the $17.9 billion-asset TCF Financial, which is building a $2 million, 3,000-square-foot bank branch nearby. Simonson says the money — i which helped pay for the owner of an old Sinclair gas station at the site to demolish it for redevelopment — was worth it because site redevelopment made way for road improvements and a sign next to the branch that promotes the Shoreview Retail Center. Jobs were not the focus in Shoreview. The city did not ask developers for construction or permanent jobs numbers. Stories behind the numbers 1 The largest single tax dollars award under the program involved Indianapolis-based Flaherty & Collins'$28 million, 230-unit Residence at the COR project in Ramsey. The luxury apartment complex is among a number of projects occurring in the more than 400-acre COR area. The city used $3.8 million in TIF property taxes as part of an overall $7 million grant and loan package to support the project, said Darren Lazan, development manager for the COR project.