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EDA Agenda Memo <br /> November 10, 1997 <br /> Page 5 <br /> • Morrell Companies. This conceptual discussion of providing tax <br /> increment dollars to aid in the funding of this project leads to several <br /> questions: <br /> • Is the EDA in favor of providing tax increment dollars to <br /> assist in the development of this project? <br /> • If tax increment dollars are to be provided to this project, <br /> would the initial city requirements be upheld? <br /> • What is the local contribution or "penalty" which will be <br /> required as part of this TIF District? The answer to this <br /> question is, from initial cash flow projections,that the city <br /> will be required to provide a minimum contribution to this <br /> project of approximately $80,000 to cover the "penalty"which <br /> is required under new state laws regarding creation of tax <br /> increment districts. <br /> It is necessary for the EDA to provide specific direction on whether <br /> Morrell Companies should proceed with a formaltax increment <br /> application. Terry Morrell will be available at the November 10 EDA <br /> meeting to address questions and provide additional information on <br /> this project. <br /> 9. Tax Increment Concept Discussion -Earl Hohlen Project <br /> Issue <br /> The purpose of this agenda item is to hold a concept discussion of <br /> providing tax increment dollars to a commercial/industrial project at <br /> the corner of Highway 169 and Main Street -the Earl Hohlen property. <br /> Background <br /> Attached to this memo is a letter from Pelstring Capital Corporation, <br /> representing Associated Builders,the developer of the Earl.Hohlen <br /> property. Pat Pelstring has been retained by Associated Builders to <br /> aid in researching the tax increment issues for this project. His letter <br /> explains a variety of issues related to TIF and the overall development <br /> of this site. Mr.Pelstring and representatives of Associated Builders <br /> will be in attendance at the November 10 EDA meeting to address <br /> questions and provide additional information regarding this issue. <br /> The purpose of this discussion is to provide direction to staff and <br /> Associated Builders on whether to proceed with a formal tax increment <br /> application in the near future. They currently, as indicated in their <br /> Ak letter, do not have a specific request for tax increment financing or <br />