Laserfiche WebLink
Mr. David Loch <br /> August 11, 1998 <br /> Page 6 <br /> • six times the combined total of the estimated market value in <br /> the last five certified TIF Districts? <br /> As indicated in the attached information, Elk River's captured <br /> tax capacity (TIF Districts) is 2.67 percent of the city's total tax <br /> capacity. This is far below three of the other Sherburne County <br /> communities: <br /> • Big Lake - 11.05% <br /> • Princeton - 9.31% <br /> • Zimmerman - 6.34% <br /> Elk River's percentage of captured TIF tax capacity is also far <br /> below the statewide average of 7.58 percent. This reflects that <br /> recent and past City Council's have used tax increment in a very <br /> conservative manner. I anticipate that this trend will continue <br /> in Elk River as tax increment has become more cumbersome and <br /> difficult to use over the past several years, and city's are now <br /> being required to bear the financial penalties associated with <br /> creation of new TIF districts. <br /> • Another issue addressed by the Commission is regarding <br /> bonding for this project in TIF No. 19. The developer has <br /> requested pay-as-you-go tax increment assistance. This means <br /> that the developer takes all the risk in the project and the city is <br /> not required to bond to provide the developer's assistance. The <br /> developer would be paid their agreed upon level of assistance in <br /> future years as the increment is generated from the project. <br /> The Commissioner's final question under this issue says "Is it in <br /> the best interest of the city to finance this District in the event <br /> that an industrial project comes along?" It is my hope that I <br /> have addressed this question in the first part of this letter <br /> wherein I indicate that the creation of this TIF District is <br /> entirely predicated upon the developer agreeing to construct a <br /> 40 acre industrial park which will create approximately 400,000 <br /> square feet of industrial buildings with an estimated market <br /> value of approximately $20 million. This industrial park has <br /> the potential to create 300 to 500 new jobs over the next five <br /> year period for residents of Elk River and all of Sherburne <br /> County. <br /> • <br />