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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Pat Klaers, Executive Director <br /> DATE: June 10, 1996 <br /> SUBJECT: Public Hearing on Tax Increment <br /> Financing Plan for Tax Increment <br /> Financing District No. 15 (McChesney <br /> Cabinets) <br /> Introduction <br /> At its May 13, 1996, meeting, the Elk River EDA authorized a public hearing <br /> for June 10, 1996, to consider a Tax Increment Financing Plan for Tax <br /> Increment Financing District No. 15 for McChesney Cabinets. On May 13, <br /> 1996, the EDA also authorized the preparation of the TIF Plan. <br /> 10 Background <br /> Attached for your review is the TIF application from McChesney Cabinets <br /> and the TIF Plan for TIF District No. 15. This request for TIF assistance <br /> comes from Jerry McChesney who is the owner of McChesney Cabinets. <br /> McChesney Cabinets needs additional space to enable the company to grow <br /> in order to meet increasing demands for its product and service. McChesney <br /> Cabinets is a manufacturer and installer of custom cabinets and countertops <br /> and specialty wood items. Without city assistance for this project, the <br /> expansion could not reasonably be expected to occur solely through private <br /> investment within the foreseeable future. City assistance is needed in order <br /> to preserve capital so that the company can provide the additional machinery <br /> that is necessary to meet increasing demands for its products. <br /> McChesney Cabinets is proposing to construct an approximately 10,000 <br /> square foot facility. The company seeks $35,000 in TIF assistance to support <br /> this project. The company seeks to construct this facility on Lot 9 of the <br /> McChesney Industrial Park. Tax increment funds will be used to write down <br /> the value of this lot on a pay-as-you-go basis. With this project, McChesney <br /> Cabinets would go from a 3,000 square foot facility to a 5,000 square foot <br /> facility. The balance of the facility will be leased out to another local <br /> • company, Winlectric, for its expansion. With this project, McChesney <br /> 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612).441-7425. <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />