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

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• TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 15 SUMMARY McChesney Cabinets, 18983 York Street, Elk River, Minnesota seeks $35,000 in Tax Increment Financing assistance to support its proposed construction of a 10,000 square foot facility in the McChesney Industrial Park. McChesney Cabinets is a manufacturer and installer of custom cabinets and countertops and specialty wood items. McChesney Cabinets currently occupies 3,000 square feet at 18983 York Street in Elk River, Minnesota, and currently has two (2) full time employees at this facility. As a result of the expansion, approximately two new full-time jobs will be created in 1997. The Economic Development Authority for the City of Elk River, Minnesota is proposing the creation of an Economic Development District pursuant to the Tax Increment Financing Act. Tax increment funds will be used to "write- down" the price or value of the development site. The Economic Development Authority for the City of Elk River proposes to reimburse McChesney Cabinets for the value associated with Lot 9 under a pay-as-you-go Tax Increment Financing District. • The 10,000 square foot facility will have a finished market value estimated at $300,000 which produces property taxes of approximately $12,600 per year. Of this total, $11,400 will be new additional taxes. These new funds will be "captured" by the Economic Development Authority so that the City of Elk River can recover the $35,000 in tax increment assistance. After these funds have been repaid, Tax Increment Financing District No. 15 will be decertified, thereby enabling all local taxing jurisdictions (county, school, city, etc.) to share in the project's property taxes. The Economic Development Authority for the City of Elk River, Minnesota anticipates that Tax Increment Financing District No. 15 will exist for approximately six (6) years; during which time tax increment funds will be collected for four (4) years. •