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MEMORANDUM <br /> <br />Item ~ 2.3. <br /> <br />TO: <br /> <br />FROM: <br />DATE: <br /> <br />Mayor & City Council <br />Elk River Municipal Utilities Commission <br /> <br />Catherine Mehelich, Director of Economic Development,t~.~ <br />August 25, 2004 <br /> <br />SUBJECT: <br /> <br />SAC and WAC Fees for Downtown Redevelopment Projects <br />and General Update on Status of Parking Lot Expansion <br />Plans/Utilities Building Removal <br /> <br />Attachments · Downtown Revitalization Project - Project Description, June 2003. <br /> · Memo from Sid Inman, Ehlers RE: MetroPlains But For Analysis, August 19, 2004. <br /> <br />Background <br />Since 2002 the HRA and City Council have been working with MetroPlains Development <br />for a redevelopment project in downtown Elk River. The project, as described in the <br />attached fact sheet, includes development of housing and commercial on the Bluff Block <br />and Jackson Block. The project is in the stage of establishing a Tax Increment Financing <br />(TIF) district and drafting a final development agreement. <br /> <br />Issue for Discussion <br />If necessary to make the project financially feasible the City has offered to reduce, waive, or <br />delay payment of the SAC and WAC fees, with the understanding that the utility commission <br />must approve the WAC reduction or waiver. The attached memo from Sid Inman of Ehlers <br />& Associates describes the method in xvhich the need for financial assistance will be <br />determined. In addition the City has retained the ability to be reimbursed for any SAC and <br />WAC reductions and a cost for Jackson Block land annually through market value inflation <br />of the project over the 25 year TIF term. <br /> <br />Staff has estimated the following SAC and WAC amounts for the proposed project: <br /> <br />Bluff Block <br />Residential (68 ~ 0.8 = 54.4 units) <br /> WAC Rate $1,500/unit <br /> SAC Rate $2,000/unit <br /> <br />Total Due $102,000 <br />Total Due $136,000 <br /> <br /> <br />