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Consider Approval of Orluck Industries Preliminary Proposal <br /> EDA Meeting February 9,2004 <br /> Page 2 of 2 <br /> • Mr.Orluck 23,000-square Poses to construct an approximatelyro foot building,in which <br /> his company would occupy 13,000-square feet and balance would be leased to business park <br /> district eligible uses. <br /> Staff has proposed the following site and financial package for the project: <br /> • Location-A 2.79-acre parcel located at the southwest corner of the Joplin Street <br /> and Business Center Drive intersection. The parcel is currently owned by the City of <br /> Elk River and was purchased from the County upon tax forfeiture in 2001. <br /> • Write-down of 100% of land costs upfront by way of Tax Rebate Financing that <br /> would then reimburse the City for land costs estimated at$201,520. <br /> As is often the case,this project is on a tight schedule and staff is doing its best to <br /> accommodate the timeframe where possible. Mr. Orluck is in the process of completing the <br /> necessary paperwork,including the TRF application and submitting site plans. Although the <br /> TRF application was not available for inclusion in this packet,it is staff's intention to <br /> provide a copy of the application and a rating sheet at the EDA meeting. <br /> In addition to writing down the cost of the land, a land use amendment must also be <br /> processed by the City. While the zoning is Business Park,the underlying land use is <br /> Community Commercial. The land use must be changed to Light Industrial for the project <br /> to move forward. <br /> • Action Requested <br /> Staff recommends that the EDA and City Council consider approval of the Preliminary <br /> Proposal concept for the Orluck Industries project and direct staff to complete the due <br /> diligence process for the necessary land use amendment, financial analysis, and Tax Rebate <br /> Financing process. Per the City's TRF policy,any requests over the amount of$25,000 <br /> requires financial review and but-for analysis by the city's financial advisor, Ehlers& <br /> Associates. <br /> In addition to the Council's approval of the proposal concept, staff recommends that the <br /> City Council direct staff to initiate the land use amendment application process to change <br /> the land use from"Community Commercial" to "Light Industrial". <br /> • <br />