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EDA Agenda Memo Page 3 <br /> November 13, 1995 <br /> • FINISHED MARKET VALUE MAXIMUM TIF GRANT <br /> $375,000 $56,250 <br /> $400,000 $60,000 <br /> $425,000 $63,750 <br /> $450,000 $67,500 <br /> Because this TIF District is structured as a pay-as-you-go district, the <br /> developer/company incurs all of the up front costs, including the <br /> acquisition costs and site development and site preparation costs. As <br /> the new project begins to generate taxes, the EDA/city reimburses <br /> them back to the developer/company twice a year in July and in <br /> December. As a result, the contract for private development is much <br /> more simplified because the city's risk is minimized. <br /> Although no construction activities will begin during 1995, all parties <br /> agree that it is advisable to execute a contract for private development <br /> under the known set of TIF restrictions. Execution of a contract also <br /> enables the county auditor to certify the legal descriptions as being in <br /> a TIF District. <br /> City Attorney Peter Beck was asked to prepare the contract for private <br /> • development. Its approval will also be subject to City Council action at <br /> a future date. EDA Commissioners should note that an integral <br /> component of the contract is a Tax Increment Revenue Note. This <br /> Note ndebts the city to Mowry/Neos so long as the pay-as-you-go <br /> activities are required of the project. <br /> Action Requested <br /> The EDA is asked to authorize its president and executive director to <br /> execute its portion of the contract for private development with Jack T. <br /> Mowry/Neos, Inc. <br /> 11. Central Minnesota Development Company Resolution of Support <br /> The Elk River Economic Development Authority is in receipt of <br /> correspondence from Central Minnesota Development Company <br /> (CMDC) concerning its exploration to expand its service territory <br /> beyond Anoka County. Given CMDC's response from targeted lenders <br /> and economic development professionals, it has agreed to proceed with <br /> an application to the Small Business Administration in order that it <br /> may expand its service territory to include Sherburne, Isanti, and <br /> Chisago counties. Toward that end, letters and/or resolutions of <br /> • <br />