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"ity of <br /> <br />Item 5.4. <br /> <br />TO: <br /> <br />Elk River City Council <br /> <br />FROM: <br /> <br />Cathy Mehelich, Director of <br />Economic Development <br /> <br />DATE: <br /> <br />August 10, 2000 <br /> <br />SUBJECT: <br /> <br />Consider Performance/Assistance <br />Agreement with David & Carole <br />Ripplinger <br /> <br />l$slte <br />Per state law, any subsidy agreement issued by the EDA must receive <br />approval by the City Council. <br /> <br />Background <br />David & Carole Ripplinger have proposed to construct a 15,200 square <br />foot building to relocate and expand their business (Track of the Wolf, <br />Inc.) to Elk River and also to provide leasible light industrial space on <br />half of a site currently owned by the EDA (located at Joplin Street & <br />183rd Ave). <br /> <br />The Ripplingers have requested that the EDA provide the following <br />assistance in order to encourage the development project to occur: <br /> <br />· Subdivide the property into two lots $ 8,000 <br />· Transfer the south half of the property $165,400 <br /> to David & Carole Ripplinger at a 100% <br /> write down of market value <br />· Split the cost of water/sewer installation $ 2,500 <br /> <br />Total value of assistance requested <br /> <br />$175,900 <br /> <br />Current market value of the 4.36 acres is $330,800. The City of Elk <br />River purchased the property in December 1997 with excess tax <br />increment finance revenues in the amount of $198,750. The property <br />was then transferred to the EDA for sale and marketing. <br /> <br />Limitations exist on the EDA sale of the property since the purchase <br />was last funded by tax increment finance dollars. Any sale proceeds <br />would be considered increment and would need to be returned to the <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />