7.0.-8.0. EDSR 06-10-1996 - Laserfiche WebLink

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• Cabinets will add two new employees over the next three years. McChesney Cabinets currently has two employees. Additionally, it is anticipated that Winlectric will be adding another employee with their expansion. Overall, this project adds 10,000 square feet of industrial space to the community and adds another few employees. Additionally there is a spin-off benefit with this project whereby other companies can expand into the existing space that McChesney Cabinets and Winlectric currently occupy. The Sherburne County Board of Commissioners and the 728 School Board have both reviewed this TIF Plan and have accepted the Plan without comment. Both the School Board and County Board waived the 30 day review and comment time requirement in order to allow this public hearing to take place on June 10. The Planning Commission reviewed this TIF Plan on May 28, 1996, and found the proposal and land use activity to be consistent with the Comprehensive Plan. State law requires that when city assistance is provided,job creation goals must be met. The job creation goals must be reported to the Department of Trade and Economic Development. This project has very modest job creation goals, but the company is very small. You can look at the job creation goals in two ways; one way is that there is only two new jobs being created, the • other is that the jobs in the company are being doubled. The two additional jobs do meet the job creation requirement for providing financial assistance. This is an economic development TIF District. Accordingly, there is a penalty for the local unit of government that creates the TIF District. This penalty can either be a loss of local government aid or the city can opt out of the local government aid penalty by providing a qualified local contribution to the District. The local government aid penalty equals 35 percent of the increment while the local option out provision calls for 10 percent of the TIF assistance to be contributed by the city or EDA to the District. The 10 percent option out provision is more economical for the city or EDA. It is recommended that the city select the qualifying local contribution option as this has a smaller impact on city funds. Additionally, it is recommended that the city/EDA uses funds generated from the selling of the Industrial Park lot to the School District for financing this contribution. This land transaction was recently completed and the School District public works facility is under construction. Questions regarding the TIF penalty should be directed to Lori Johnson. As required by law, this EDA public hearing notice has been published in the Elk River Star News. The City Council public hearing on this District and proposal will follow the EDA meeting. The TIF Plan is consistent with state • law, meets the but for requirement in state law (but for city assistance, this