7.1. SR 09-03-2013 - Laserfiche WebLink

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City of Elk - Request for Action River TO ITEM NUMBER Mayor and City Council 7.1 AGENDA SECTION MEETING DATE PREPARED BY Public Hearings September 3, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Tax Increment Finance: Preferred Powder LLC. Brain Beeman,EDA Director and Jeremy Barnhart, CODD Deputy Director REVIEWED BY Cal Portner, City Administrator Action Requested 1) Open a Public Hearing to consider Tax Increment Financing District Number 23 (TIF 23) in the City of Elk River as requested by Preferred Powder Coating,LLC. 2) Approve by motion the following: • Interfund Loan Resolution • Resolution Approving TIF • Forgivable Loan Agreement • Forgivable Loan Mortgage • Forgivable Loan Security Agreement • Wetland Credit Purchase Agreement • TIF Agreement • Land Purchase Agreement • Development Agreement Background/Discussion Preferred Powder,LLC submitted an application for TIF for$1,153,878 for the construction of a 100,000 sq. ft. manufacturing facility in the city-owned Nature's Edge Business Center. At its August 19 meeting,the Council called for a public hearing for tonight's meeting. Both the school district and the county waived the 30-day comment period so the city could consider approval at an earlier date. Preferred Powder requested TIF of$1,153,878 over 9 years. With a 1.5%interest rate,the city amount of TIF would be $404,082, the school district portion would be $401,556, and the county would be $436,547. Staff has evaluated Preferred Powder's application and has scored it as a 36 out of a possible 45 points, which qualifies it as a "moderately desirable"project based on the city's project priorities. The Planning Commission has reviewed the site plan as part of a variance application. The Commission determined that the plan is consistent with the city's comprehensive plan. A Business Subsidy Agreement is required by statute because the proposed assistance exceeds $150,000. The agreement will require the applicant to create a minimum of 8 jobs and retain their existing 24 jobs. They P O w E R E U a r NaA f RE]