HRSR INFORMATION 04-23-2001 - Laserfiche WebLink

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• iIER IN ZEVIEW TAX INCREMENT FINANCING A revised Tax Increment Financing policy was adopted by the City Council in March. The revisions identified minimum requirements for the use of TIF and incorporated provisions of the new business subsidy law. The only new TIF district created in 2000 was TIF 21 for the Opus/Softpac project. The pay-as-you-go district will write down the $700,000 land costs associated with the project over a period of eight years. TAX REBATE FINANCING Also referred to as tax abatement,Tax Rebate Financing(TRF) is a relatively new economic development tool. The mechanics of the tool are similar to TIF in that tax dollars can be used to pay for development costs. The primary difference is that each government entity elects to rebate its portion of the project's taxes. Subsequently,TRF generally results in fewer dollars for a project than TIF, but allows for greater flexibility in the application of those dollars. In April the City Council adopted Tax Rebate Financing policies,which set parameters for its use and incorporated the required provisions of the business subsidy law. Upon recommendation from the EDA, the City Council also authorized the use of IRF in the construction of an 18,000 sf multi-tenant industrial building in the McChesney Industrial Park. Sherburne County also participated in the project. ECONOMIC DEVELOPMENT MICRO LOAN PROGRAM One micro loan was made in 2000 to Ultra Image Powder Coating. The loan was set up as a participation loan with the First National Bank of Elk River and was used for a building expansion and equipment purchase. The lawsuit with Northstar Diecasting was also settled in 2000 when the company agreed to pay$1000/month for 36 months. The loan fund ended 2000 with a cash balance of$442,528. BUSINESS INCUBATOR In early 2000, Watermark ceased operations and vacated its suite. Also in 2000 SolarAttic, due to vacancies at that time, entered into a twelve-month market rate lease with the EDA for its existing incubator suites. The company vacated 2500 sf of manufacturing space in December of 2000, but will remain in its smaller office space until April of 2001. Two new companies signed leases for incubator space in 2000.Vertical Publishing,which provides an internet presence and archiving service for small publishers and trade magazines leased 2200 sf. Integrated Power Solutions,which has developed a manufacturing process for a solid state battery that can be integrated into the circuitry of any electronic device, leased 1500 sf of space in the incubator and plans to move into market rate space in spring of 2001.