5.1. HRSR 09-07-2004 - Laserfiche WebLink

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• Ehlers and Associates Tax Increment Financing District Overview City of Elk River Downtown Phase I Tax Increment Financing District No. 22 Proposed action: Establishment of Downtown Phase I Tax Increment Financing District No. 22 and the adoption of the Tax Increment Financing Plan. Type of TIF District: A Redevelopment District Parcel Numbers: 75-405-0450 75-405-0470 75-405-0460 75-404-0141 75-404-0140 75-405-0310 Location: See the attached map Proposed The District is being created to facilitate the redevelopment of the area,which development: includes a four story building with approximately 10,000 square feet of commercial space and 52 for-sale residential units and a three story building with approximately 10,000 square feet of commercial space and 32 rental housing units in the City of Elk River. Estimated annual tax $198,606 • increment: Proposed uses: The TIF Plan contains the following budget: Land/Building Acquisition-Relocation and Demolition 2,590,000 Public Utilities(pooling, amount to Sac Wac) 690,000 Interest 3,820,000 Administrative Costs(up to 5%) 250,000 TOTAL $7,350,000 See Subsection 2-10, page 2-6 of the Plan for the full budget authorization. Additional uses of funds are authorized which include inter-fund loans and transfers and bonded indebtedness. Form of financing: A pay-as-you-go note and interfund loans are the primary form of financing. Maximum duration: The duration of the District will be 25 years after receipt of the first increment by the HRA or City(a total of 26 years of tax increment). The date of receipt by the City of the first tax increment is expected to be 2006. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2031,or when the TIF Plan is satisfied. Administrative fee: Up to 10%of annual increment for eligible costs.