EDSR MEMORANDUM 12-11-1995 - Laserfiche WebLink

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communicate their space needs and to reconcile different artistic user's needs - prior to any community wide design determinations. By defining art related space requirements at an early stage, the Council hopes to ensure that proper consideration is given to its needs. Clifford Lundberg will be in attendance to provide the specifics of Artspace's final report to the Elk River Area Arts Council. In his cover letter, Mr. Lundberg suggests that the City Council and the EDA begin to think of creative ways to finance, say, a multi-use auditorium. In addition, Mr. Lundberg requests that the City Council consider revitalizing its Community Center Task Force in order to review the Art Council's proposal as well as any additional space requirements for recreational users. At this writing, it is not known what role, if any, the EDA would play in financing a multi-use auditorium. 9. Contract For Private Development (TIF District No. 13) This item was deleted from the EDA's November 13 agenda. Information found in the following paragraphs is offered as a review. Following a public hearing on June 12,EDA Commissioners approved a request for Tax Increment Financing assistance from Jack T. Mowrey/Neos, Inc. to assist with the construction of a 12,000 square foot precision machining facility in the McChesney Industrial Park. On June 19, the Elk River City Council finalized the request for TIF assistance by also approving the TIF Plan. The TIF assistance is limited to 15 percent of the project's finished market value (for tax purposes). Because this TIF District is structured as a pay-as-you-go district, the developer/company incurs all of the up-front costs including the acquisition costs and site development and site preparation costs. As the new project begins to generate taxes, the EDA/City reimburses them to the developer/company twice a year - in July and in December. As a result,the contract for private development is much more simplified because the city's risk is minimized. Although no construction activities will begin during 1995, all parties agree that it is beneficial to execute a contract for private development under the existing TIF rules and regulations. Execution of a contract also enables the County Auditor to certify the legal description as • being in a TIF District.