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the value of the county's former administration building would likely have <br /> • been significantly less than the price for which it was sold to School District <br /> No. 728. The school district may not have even been interested in the <br /> building if the condition of that block had not been significantly improved <br /> through utilization of tax increment financing to acquire and demolish the <br /> underutilized buildings. <br /> I understand the Commissioners sensitivity toward the use of tax increment <br /> financing if you choose to not believe in the "but/for analysis." The but/for <br /> analysis states that but for the use of tax increment financing, the project <br /> would not become a reality. In all cases, the City of Elk River has applied the <br /> but/for analysis to the creation of each and every tax increment district. <br /> Without utilizing the tax increment tool, the City of Elk River would have a <br /> significantly less desirable appearance and tax base than it currently has. <br /> The impact of tax increment can been seen in examples such as this, whereby <br /> upon decertification, a significant amount of tax base is created which would <br /> otherwise not have been created. <br /> Attached also is a copy of two resolutions which decertify Tax Increment <br /> District No. 8 as discussed in the body of this letter, and also decertifying Tax <br /> Increment District No. 5. Tax Increment District No. 5 generated <br /> approximately $140,000 in tax revenues in 1997. These tax revenues, based <br /> • on a multimillion dollar estimated market value, upon decertification at the <br /> end of 1997, are available to the benefit of all taxing jurisdictions. <br /> It has and always will be the city's effort to utilize the tax increment tool in <br /> an effective and efficient manner, and to apply a very strict but/for analysis <br /> to each and every project which is considered for any type of public financing. <br /> Thank you for the opportunity to share this information. If you have any <br /> questions or comments, please feel free to call me any time at City Hall. <br /> Sincer y <br /> - 7 <br /> Paul T. Steinman <br /> Director of Economic Development <br /> c: Hank Duitsman, Mayor <br /> Pat Klaers, City Administrator <br /> Lori Johnson, Assistant City Administrator <br /> Economic Development Authority <br /> • <br />