7.0. EDSR 10-14-2002 - Laserfiche WebLink

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CITY OF ELK RIVER DOWNTOWN RIVERFRONT REVITALIZATION Q&A NEWSLETTER OCTOBER 2002 Q. As a business owner, when should I begin site costs have been paid,the tax increment goes to the to look for a new location? taxing jurisdictions. A. It is always good to be aware of options. However,at this time it is still too early to be certain if the redevelopment will be successfully Q. Why is the City pursuing redevelopment • completed and when it will be completed. It is also important to note and revitalization of downtown? that while businesses are free to relocate at any time, if they relocate A. For more than 30 years studies have emphasized the need to better ahead of the redevelopment process they may lose their chance to utilize the riverfront,capitalize on the traditional character,and obtain possible relocation assistance. ensure safe pedestrian and vehicle movement. Investment in down- town has stagnated and the riverfront is underutilized.The redevel- Q. Does the City have any program to help downtown opment will enhance downtown Elk River's role as a retail,commer- businesses that will not be redeveloped to restore cial and residential area and revitalize the investment made in the their traditional character? downtown business district. A. Yes.The Elk River Economic Development Authority(EDA)has a Micro Loan Fund to help businesses to rehabilitate and restore their Q. Is this redevelopment a"sure thing"? buildings.A loan for up to$50,000 is available at two points below A. No. Redevelopment is a complex process and requires many steps the prime rate with financing for up to three years and amortization and cooperative planning by the developer and the City.The rede- up to 15 years.At least 20 percent of the loan dollars must be used velopment project must meet the goals of the community and pass for improvement of the building's facade and the EDA's loan must the test of both market and financial feasibility.That is why the be matched on a one-to-one ratio. For more information,contact process begins with a preliminary development agreement phase to Economic Development Director Cathy Mehelich. ensure that the important issues can be resolved before moving on to the final development phase. Q. How will this redevelopment project be funded?Will the project impact my property taxes? Q. When will there be an opportunity for more A. The project will be funded primarily through land payments by the public involvement? developer and tax increment finance. Because the project is being A. Once the developer, in cooperation with the City, has prepared pre- funded by other sources,the City does not anticipate that it will liminary site plan options,an open house will be held to get commu- impact property taxes.The tax increment financing assistance, if nity review and feedback of the plan.The exact date of that open used,will be provided based upon the taxes generated by this house is not known, but it will likely be held later this year. More development and will not result in a tax on existing taxpayers. information will be available in the coming months. • Q. What is tax increment financing (TIF)? Q. How can I stay informed? A. TIF is a financing tool created by the Minnesota Legislature in the mid- A. Copies of this and future newsletters will be available at City Hall,the 1970s to help encourage development and redevelopment.Under TIF, Chamber of Commerce,and Elk River Municipal Utilities. In addition, property tax revenue equivalent to what the current property generates information will be provided in the Elk River Star News and on ERN continues to go to all taxing jurisdictions.A portion of the tax revenue Channel 12,and the city website at www.ci.elk-river.mn.us. If you that results from the increased value of the new development,also have questions about the revitalization process,please feel free to called the"tax increment,"goes to pay site costs such as acquisition, contact the Director of Economic Development,Cathy Mehelich demolition,water,sewer,utilities,and street improvements.Once the at(763)441-7420. fl-('. ai, IL City of Elk ,, River 13065 Orono Parkway, Box 490 Elk River, MN 55330 •