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ELK RIVER ECONOIPMENT AUTHORITY <br /> Item # 5 .1 & 5.3 <br /> • TO: Elk River EDA <br /> FROM: Cathy Mehelich, Director of <br /> Economic Development <br /> DATE: August 10, 2000 <br /> SUBJECT: David& Carole Ripplinger Project <br /> Issue <br /> Per state law, the EDA is to consider public input on the following items as it <br /> relates to the Ripplinger development proposal: <br /> 1) Sale/disposal of EDA public property—South Half of Lot 1, Block 1, <br /> Country Crossing Business Center 2nd Addition. <br /> 2) Granting Subsidy Assistance in an amount exceeding $100,000 to be <br /> provided in the form of a land sale write down <br /> Background <br /> David & Carole Ripplinger have proposed to construct a 15,200 square foot <br /> building to relocate and expand their business (Track of the Wolf, Inc.) to Elk <br /> River and also to provide leasible light industrial space on half of a site <br /> • currently owned by the EDA (located at Joplin Street & 183rd Ave). <br /> The Ripplingers have requested that the EDA provide the following <br /> assistance in order to encourage the development project to occur: <br /> • Subdivide the property into two lots $ 8,000 <br /> • Transfer the south half of the property $165,400 <br /> to David & Carole Ripplinger at a 100% <br /> write down of market value <br /> • Split the cost of water/sewer installation $ 2,500 <br /> Total value of assistance requested $175,900 <br /> Current market value of the 4.36 acres is $330,800. The City of Elk River <br /> purchased the property in December 1997 with excess tax increment finance <br /> revenues in the amount of$198,750. The property was then transferred to <br /> the EDA for sale and marketing. <br /> Limitations exist on the EDA sale of the property since the purchase was last <br /> funded by tax increment finance dollars. Any sale proceeds would be <br /> Alik considered increment and would need to be returned to the County for <br /> gr distribution. The source of funds for subdivision expenses and water/sewer <br /> installation would come from the EDA reserve fund. <br /> 13065 Orono Parkway • P. 0.Box 490 • Elk River, MN 55330-1743• (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />