7.0. HRSR 06-30-2004 - Laserfiche WebLink

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00 WittOWit /(WitaltliZgi-thfrt/ • City of &A Newsletter Elk -�-� � JUNE 2004 II ...1'S.Te f Enhancing Downtown Elk River's Role As a Vital Retail,Commercial and Residential Area. Q. What is happening with the Downtown River and to assure the public's involvement in the planning Revitalization Project? and design stage. A. On May 3, 2004, the Elk River Housing & Redevelopment Q. What is the anticipated schedule for Authority(HRA) approved the key points of a final develop- the project? ment agreement with MetroPlains Development for the Bluff A. The anticipated project schedule is as follows: and Jackson Blocks. The HRA and developer are working on the final development agreement which will be finalized • TIF District established—late summer 2004 upon the establishment of the Tax Increment Financing (TIF) Final development agreement—late summer 2004 District. This is expected in late summer 2004. • Q. What type of development is proposed for Land use approvals-fall/winter 2004 the Bluff and Jackson Blocks? • Property acquisition—summer/fall 2004 A. The Bluff Block is located on the southwest corner of Main St. Land clearance and construction—spring 2005 and County Rd. 42(Parrish Ave. Bridge). The Bluff Block proposal includes a four Q. How will the project be funded? story building with an estimated 68 A. The project will be funded primarily by This Q&A newsletter • underground parking stalls; about 10,000 MetroPlains'financing related to future square feet of commercial space on the responds to some sales and rentals of residential and com- first floor along Main Street; 52 for-sale or the recent questions mercial space. The City provides assis- residential units and a riverwalk connec- about the Elk River tance through Tax Increment Financing tion to a city park. (TIF) as necessary for public improve- Downtown Revitalization ments. The City has retained financial con- The Jackson Block is located on the Pro•ect. sultants to ensure that any assistance pro- northeast corner of Jackson Ave. and vided to the developer is only the amount Main St. The Jackson Block proposal that is justifiable and reasonable. includes a three story building with an estimated 50 under- ground parking stalls; 32 rental housing units and about Q. What is Tax Increment Financing (TIF)? 10,000 square feet of commercial space on the first floor A. TIF is a financing tool created by the Minnesota Legislature along Main Street and Jackson Avenue. in the 1970s to help encourage development and redevel- opment of underutilized and/or blighted properties. Under Q. Which of the blocks will be developed first? TIF, property tax revenue equivalent to what the current A. MetroPlains has agreed with the HRA's goal that the Bluff property generates continues to go to all taxing jurisdictions. Block be redeveloped first before the Jackson Block. At this The portion of the tax revenue that results from the time it is unknown how much longer after construction increased value of the new development, also called the begins on the Bluff Block that construction will begin on the "tax increment," is used to pay site costs such as acquisi- Jackson Block. It is possible that construction of both blocks tion, demolition, water, sewer and street improvements. could be done simultaneously. Once the site costs have been paid, the tax increment goes Q. What is the typical time frame for a to the taxing jurisdictions. redevelopment project? Q. Why does the HRA need to establish A. The planning process for a typical redevelopment project a TIF District? can take up to two years. Construction then begins and that A. Minnesota State Statute permits cities to establish TIF . could take two years depending on the size of the project. Districts as a method to assist with redevelopment. For a redevelopment project to work, it must not only meet Establishing a TIF District allows the HRA/City Council to community goals, but also make sense from both a market capture the tax increment created by the new development. and financial perspective. Elk River's project is unique due Then the HRA/City Council may use portions or all of the to the complexities of developing adjacent to the Mississippi increment to provide financial assistance to the developer.