7.1. SR 09-03-2013 - Laserfiche WebLink

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City of Elk River, Minnesota Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District; however, the City does not anticipate acquiring any such property at this time. The EDA intends to sell the property within the TIF District to the developer upon commencement of the project. Section I Specific Development Expected to Occur Within the TIF District The proposed development is expected to consist of an approximately 100,224 square foot facility for Preferred Powder Coating, a metal powder coating company that works with aeronautics, athletic equipment, automotive, die casting, medical equipment, OEM, recreational, retail and sheet metal. At least 85% of the facility will be used for manufacturing, distribution, or research, with less than 15% available for office space. The development will result in increased employment within the City, in compliance with statutory requirements. The company currently employs 24 employees that will be new to the City with the company relocation, and anticipates creating 8-10 new jobs over the next two years. It is anticipated tax increment will be used to finance a portion of the extraordinary site improvement and infrastructure costs necessary for development of the project site. In addition, the City anticipates using available tax increment for related administrative expenses and any other eligible expenditures associated with development of the site. The facility is expected to be fully constructed in 2013 and be 100% assessed and on the tax rolls as of January 2, 2014 for taxes payable in 2015. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City,would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. Factual basis: Proposed development not expected to occur., The proposed development consists of an approximately 100,224 square foot manufacturing facility. The developer of the site has submitted information to the City demonstrating that the development of this site is not financially feasible without the assistance provided in this TIF Plan. The City has determined the proposed development would not occur but-for the financial assistance provided in this TIF Plan because of high costs related to the acquisition and development of the site. There are extraordinary site improvement costs associated with development of the site and the developer has SPRINGSTED Page 4