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, / ( <br /> * <br /> c, <br /> • <br /> City of <br /> Elk , River MEMORANDUM <br /> TO: Mayor & City•Council <br /> Economic Development Authority <br /> Housing & Redevelopment Authority <br /> FROM: Cathy Mehelich, Director of is <br /> Development <br /> DATE: February 5, 2001 <br /> SUBJECT: Agenda Memo for Worksession <br /> Issue <br /> • This is a joint meeting of the City Council, Economic Development Authority, and <br /> Housing and Redevelopment Authority for the purpose of reviewing two primary <br /> economic development finance tools. <br /> Sid Inman, from Ehlers and Associates, Inc. will be at the meeting to present a <br /> summary of how the Tax Increment Financing and Tax Abatement programs work <br /> and an update on recent statutory changes. Requirements under the Business Subsidy <br /> Law and impacts of legislative proposals will also be discussed. <br /> Background <br /> The City of Elk River currently administers ten active tax increment financing <br /> districts. One of the ten active districts is a housing district, and the others consist of <br /> four redevelopment districts and five economic development districts. For the year <br /> 2000 the City's percentage of captured TIF/total tax capacity was 1.06%. This <br /> percentage is among the lowest as compared to area cities such as Monticello (3.85%) <br /> and Anoka (16.45%). Elk River's percentage of TIF/total tax capacity is also among <br /> the lowest compared to similar metro and non-metro cities. Attached is a summary of <br /> tax increment finance statistics among other cities as listed in the League of MN Cities <br /> Magazine(Sept. 2000). <br /> III <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone (763)441-7420 •Fax (763) 441-7425 <br />