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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> ,—FROM: Paul T. Steinman, Director of Economic <br /> Development <br /> DATE: September 17, 1998 <br /> SUBJECT: Agenda Memo for September 21, 1998, <br /> Special Meeting <br /> 5. Consider Supermats Development Agreement <br /> Background <br /> Attached to this memo is the contract for private development <br /> Ai between the EDA and Bryan Jones (Supermats). The primary <br /> Nir purpose of this development contract is as follows: <br /> • Guarantees construction of a building with a minimum <br /> market value of 1 million dollars <br /> • Allows for the EDA to regain ownership of the Industrial <br /> Park lot should development not occur within a 90 day time <br /> frame after providing the lot to the developer <br /> • Guarantees specific job performance standards to be met <br /> within a 2 year time frame of completion of construction <br /> • Provides the land from the EDA to the developer at no cost to <br /> the developer <br /> • Limits the developer's use of the property to those specifically <br /> described in the tax increment statute, i.e. manufacturing, <br /> warehousing, storage, distribution, research and <br /> development, and related activities <br /> Tax increment generated by this project will be used to reimburse the <br /> EDA for its purchase of this lot back in July, 1997. The specific <br /> amount of this reimbursement will be determined by an appraisal of <br /> the property which will be done in conjunction with the overall <br /> financing for the project. Staff estimates this reimbursement will be <br /> approximately $65,000 to $75,000. <br /> 13065 Orono Parkway• P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />