5.0. 6.0. 7.0. 8.0. HRSR 03-27-2000

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ity of MEMORANDUM AkiRiverTO, Housing & Redevelopment Authority FROM: Marc Nevinski, Acting Director of Economic Development DATE: March 27, 2000 SUBJECT: HRA Meeting Agenda 5. King & Main Purchase Agreement Attached is a draft of the purchase agreement for King & Main by the First National Bank of Elk River. In lieu of a separate development agreement, the purchase agreement includes conditions for the development of the site, such as minimum building size and construction commencement and completion dates. Staff recommends that the HRA close on the site after the April 24, 2000 • HRA meeting, where the purchase agreement will be presented for final review. Although the sale of the site is not considered to be a business subsidy, as the site is being sold at market value, state law does require that a public hearing be held on the sale of city owned land. Subsequently, a public hearing on the sale of the site will be held at the April 24 meeting. Action Requested Staff asks that the HRA review the purchase agreement and provide comment. 6. Public Hearing—Revised Tax Increment Financing Policy The new state statues regarding business subsidies mandates that cities modify their current incentive and subsidy policies to include provisions stipulated by the business subsidy law. The law also requires that the city hold a public hearing on such modified policies before providing subsidies. The primary modification to the tax increment financing policy includes the addition of a ratings scale for various project applicants. Such a ratings scale will enable staff, as well as the HRA, EDA, and City Council, to better analyze a given project for its eligibility to utilize TIF. Staff presents this ratings scale under the assumption that every project that requests TIF may • not necessarily qualify for it under these guidelines. For applicants who do 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425