5.1. SR 06-10-2002 - Laserfiche WebLink

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MEMOEANDUM Item # 5.1. TO: FROM: DATE: SUBJECT: Mayor & City Council Director of Economic Developmen~///L// Catherine Mehelich, June 10, 2002 Public Hearing & Consideration of Property Tax Abatement for Elk Path, LLC Professional Office Building Project Attachments · Tax Rebate Financing Application · Tax Rebate Financing Proposal Review Worksheet · Tax Rebate Financing Projection Worksheet · City of Elk River Tax Rebate Financing Policy · DRAFT Abatement Agreement · Abatement Resolution Issue At its May 13, 2002 meeting the Economic Development Authority recommended that the City Council consider the Elk Path, LLC application request of up to $200,000 in tax abatement (tax rebate financing) for the construction of a 42,000square-foot speculative professional office building located in the West Business Park. The statutory public hearing is on two questions, namely, granting the abatement and granting this business subsidy exceeding the amount of $100,000. Background J.L.T. Partnership, L.L.P. and John C. Weicht & Associates, L.L.P. will be forming a partnership by the name of Elk Path, L.L.C. in order to construct a 42,000 square-foot multi-tenant office building in the West Business Park. The building will be designed for lease to professional, medical, and legal related businesses. Local company, John Oliver & Associates, Inc. will occupy 7,000 square-feet of the building. The building will include amenities such as fiber optics, a T-1 [me, heated underground parking and environmentally efficient geothermal heating and cooling system. The total cost of the project is estimated to be $4,720,000. Sources of financing include a $3,456,000 loan from First National Bank of Elk River, and a $864,000 equity contribution by the partners.