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EDA Agenda Memo <br /> November 10, 1997 <br /> Page 4 <br /> 410 <br /> Background <br /> Attached to this memo is Dave Decker's application for $160,000 in tax <br /> increment financing to assist with a proposed 25,000 square foot <br /> industrial project on east Highway 10. This industrial project is <br /> described as a multi-tenant facility with a total of five, 5,000 square <br /> foot bays available for lease to industrial users. Mr. Decker is <br /> proposing a phase II expansion of the facility for a total building size of <br /> approximately 70,000 square feet. Total phase I project costs are <br /> estimated to be $1.2 million. Mr. Decker also estimates there will be <br /> between 20-25 jobs created in this facility. The "state imposed <br /> penalty" for creation of this TIF District is approximately $20,000. <br /> This penalty can be funded using the city's development fund. <br /> Dave Decker and consultant Gary Santwire will be available at the <br /> November 10 EDA meeting to provide a brief presentation of this <br /> project and address questions from the EDA. <br /> Recommendation <br /> Staff recommends that the EDA approve this tax increment concept as <br /> discussed and that we continue to move forward to establish TIF <br /> District No. 17. <br /> 8. Tax Increment Concept Discussion Morrell Project <br /> Issue <br /> The purpose of this a <br /> enda item is to discuss <br /> the concept of providing <br /> up to $300,000 in tax increment dollars to facilitate the construction of <br /> an approximately 45,000 square foot trucking/distribution/office <br /> facility for Morrell Companies. <br /> Back 'round <br /> Most of you are likely aware that Morrell Companies has been working <br /> through the various city processes over the past six months to obtain <br /> necessary approvals to construct their facility in east Elk River off of <br /> 173rd Avenue. All necessary approvals have been provided to Morrell <br /> Companies to date. As is the case in projects of this size, there <br /> was substantial negotiation between the city and Morrell Companies <br /> regarding the specifics of the project. A number of city requirements <br /> were negotiated in an attempt to provide a more feasible project for <br />