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your client locate in the AEC service territory that is slightly closer to <br /> Highway 10 along Waco Street. The exact costs for ERMU electric service <br /> will depend on your client's electric usage pattern. <br /> Regarding your request for economic development incentives, as outlined in <br /> your April 30, 1996 correspondence, I would like to reiterate that the city is <br /> very comfortable using tax increment financing (TIF) and is prepared to use <br /> this economic development tool for your client. The city policy regarding tax <br /> increment subsidy states that the subsidy shall not exceed 15% of the <br /> project's finished market value as determined by the county assessor. As this <br /> percentage relates to item number 6 of your 4/30/96 letter, we are therefore <br /> talking 15% of 5.25 million dollars or $787,500 to cover items 1,2 and 3 of <br /> your letter. Based on estimates for the purchase price of land from Mr. <br /> Wilson, the assessments to this parcel for the extension of trunk and lateral <br /> utilities, building permit fees, SAC and WAC fees, surface water <br /> management expenses, site preparation expenses, etc.; it appears that there <br /> should be sufficient TIF funds available to meet the needs of your client for <br /> 40 <br /> locating in our community. The exact level of assistance cannot be <br /> determined until more details are known about your proposal. <br /> This project obviously needs EDA review and approval and before approval is <br /> given, much more information is needed about your client - the livable wages <br /> paid to the employees, the type of structure your client is planning to <br /> construct, etc. All of this exchange of information and discussions can take <br /> place simultaneously while the items listed in number 7 of your 4/30/96 letter <br /> are being reviewed by the Planning Commission and City Council. <br /> Above and beyond the high quality electric and water supply and all of the <br /> economic development incentives that are available in Elk River, I would like <br /> to again state that I believe Elk River would be an excellent community for <br /> your client and your client's employees. The city's low tax rate, quality of life, <br /> available housing stock, commercial base, park and recreation opportunities, <br /> high quality school system, and overall location along Highway 10 in the <br /> northwest fringe of the metropolitan area are very positive factors that help <br /> support Elk River's position as being the best community for your client. <br /> The City of Elk River appreciates your continued consideration of our <br /> community for your client and we look forward to further discussing this <br /> project with you. If there is additional information we can provide you, <br /> please feel free to contact me. <br /> Very truly yours, <br /> wAdp eg-e44-- <br /> • Patrick D. Klaers <br /> City Administrator <br />