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�j <br /> Elk = - Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authori 6.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business Aril 28, 2015 Amanda Othoudt, EDD <br /> Item Description Reviewed by <br /> GATR of Sauk Rapids, Inc. Property Tax Cal Portner, City Administrator <br /> Abatement Financing Reviewed by <br /> Action Requested <br /> Approve, by motion, and provide a recommendation to City Council for Tax Abatement Assistance for <br /> GATR of Sauk Rapids, Inc. <br /> Background/Discussion <br /> The Finance Committee reviewed and recommended the EDA approve GATR's application for Property <br /> Tax Abatement financing. <br /> GATR is requesting a 15 year pay-as-you-go Tax Abatement from the City of Elk River for up to <br /> $546,814. The tax abatement will allow GATR to purchase the property and provide operating flexibility. <br /> The county also received a tax abatement application that they considered at their April 21s` County <br /> Board meeting with formal review and a public hearing anticipated for May 19. The EDA and City <br /> Council recently approved an amendment to the Business Subsidy Policy, allowing business subsidies for <br /> service and retail commercial businesses. <br /> The proposed project would consist of a 42,912 square foot facility with an estimated taxable value of <br /> approximately $3.9 million. The project is estimated to generate $160,500 in total property taxes per year <br /> upon completion. The city share of the property taxes abated per year equal approximately $36,454. <br /> The project scored 43, at the higher end of the desirability range. Based on the analysis provided by <br /> Springsted, it appears that GATR would not proceed with the project without assistance. <br /> A public hearing has been scheduled for the May 18 City Council meeting to invite comments from the <br /> public. A public hearing must be held for any business subsidy in the amount greater than $150,000. <br /> Financial Impact <br /> Up to $546,814 in city tax abatement assistance, to be distributed "pay as you go" for 15 years. This <br /> abates the entire city share of taxes on the property. <br /> Attachments <br /> • Tax Abatement Application <br /> • EDA Finance Committee Staff Memo <br /> • Springsted Analysis (April 23, 2015) <br /> p0WIRED 0 <br /> NA UREJ <br />