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City of <br /> Elk - Request for Action <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 8.6 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> General Business August 19, 2013 Clay Wilfahrt,Assistant Director of Economic <br /> Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Call for Public Hearing For Establishment of a TIF Brain Beeman,EDA Director and Jeremy <br /> District Barnhart, CODD Deputy Director <br /> REVIEWED BY <br /> Cal Portner, City Administrator <br /> Action Requested <br /> Call for a public hearing regarding the creation of a TIF district in the Nature's Edge Business Center, <br /> Lot 1 Block 3. <br /> Background/Discussion <br /> Preferred Powder,LLC submitted an application for tax abatement for$576,939 to the city and the <br /> county for the construction of a 100,000 square foot manufacturing facility in the city-owned Nature's <br /> Edge Business Center. The city approved abatement in the amount of$576,939 on July 1. The county <br /> held a public hearing on August 7, 2013, to consider the abatement,but tabled the issue to August 13 due <br /> to a concern over the city's park dedication fee policy as it applied to another project. <br /> On August 13, the county approved a reduced abatement of$400,000. The Board indicated that the full <br /> amount of abatement was unnecessary for the project to proceed. The Board did not identify <br /> documentation supporting the claim. The original amount was requested as a result of an independent <br /> financial analysis conducted by Springsted,Inc.,in accordance with city abatement policies. <br /> Since August 13, the developer,his banker,and builder have approached the city with concerns about the <br /> viability of the project with the reduced subsidy amount. The developer is also working under restrictive <br /> timelines. Both the developer and banker stated that the project wouldn't happen without the full <br /> amount of assistance. Our financial advisor indicated that creating a Tax Increment Finance district <br /> would provide the necessary amount funding to support the project. <br /> Staff requests the Council call for a public hearing to create a new TIF district. Calling for a public <br /> hearing is not necessary per state statute,but it will indicate the Council's support for the financing. State <br /> statute requires a 30-day notice to the school district and the county in advance of the public hearing, <br /> unless they waive the notice. Both entities were sent letters and draft resolutions requesting they waive <br /> the 30-day notice period to enhance the chances the project is complete before the end of the <br /> construction season. With the waivers, the city could hold the public hearing on September 3. <br /> Financial Impact <br /> Details on the financial impact of the TIF district will be provided at the public hearing. <br /> P O W E R E D BY <br /> NaA f RE] <br />