3.0. EDSR 10-12-1998 - Laserfiche WebLink

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• percent penalty is mandated to come from any source other than tax increment itself. This so called penalty can be provided up front as part of the city's participation in the overall project. Staff is continuing to research options regarding this issue. Background The developer has submitted a final tax increment request for the entire project, including industrial, in the amount of approximately $5.5 million. A majority of this request relates specifically to the 40 acre industrial park. The request breaks down as follows: • commercial piece - $2.6 million • industrial piece - $2.9 million. The tax increment request to build the industrial park includes dollars for land purchase, site improvements, grading, wetland remediation, and construction of internal road/sewer/water to serve the industrial park. It is proposed that a portion of these industrial costs would be provided to the developer on a pay-as-you-go basis and a small percentage (the internal public improvements) would be provided up front. • The commercial request of approximately $2.6 million is a bit more challenging in that it is a specific request for tax increment dollars for a commercial project. The two projects are tied together, however, in that if the commercial component of the project cannot proceed, the industrial park will not be developed. In this case, the EDA and staff have felt that providing some justified tax increment to the commercial piece is worthwhile to spur development of the 40 acre industrial park. Most of the $2.6 million commercial component tax increment request is shown to pay the public improvement costs associated with this District. This is a well defined line in our discussion with the developer. The developer has indicated that with the development constraints of this project they need increment to write down the cost of some private improvements (i.e. site preparation), in addition to their request for dollars for public improvements. The city has potential to benefit from increment in TIF 19 to pay some of its various public improvement costs associated with the project and overall eastern area utility expansion. One example of such public improvement is construction of a lift station. The lift station is proposed to be constructed within the boundaries of the TIF District, but will serve to benefit a much • larger area.