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• TAX INCREMENT FINANCING PLAN <br /> TAX INCREMENT FINANCING DISTRICT NO. 13 <br /> SUMMARY <br /> TL Feeding Systems, Inc., 8720 Wyoming Avenue North, Brooklyn Park, MN seeks <br /> $150,000 in Tax Increment Financing assistance to support its proposed construction of a <br /> 15,000 square foot office and production facility on a three(3) acre lot in Country <br /> Crossing Business Center(Business Park). TL Feeding Systems designs and <br /> manufacturers vibratory and centrifugal feeding equipment and systems that orient various <br /> products for assembly and packaging. The company currently occupies leased space and <br /> it desires a more permanent office and production facility to ensure continued growth. <br /> The Economic Development Authority for the City of Elk River, Minnesota is proposing <br /> the creation of an Economic Development District pursuant to the Tax Increment <br /> Financing Act. Tax increment funds will be used to `write down"the acquisition price of <br /> the development site. Additional tax increment funds will be used for site preparation and <br /> site development costs. The expansion site is currently an unplatted parcel owned by <br /> DVM Mall Corp.. The Economic Development Authority for the City of Elk River <br /> proposes to reimburse TL Feeding Systems for its expense associated with the acquisition <br /> of the 3 acre Business Park site under a pay-as-you-go Tax Increment Financing District. <br /> 411 The 15,000 square foot facility will have t finished market value estimated at$625,000 <br /> which produces property taxes of approximately$28,300 per year. These funds will be <br /> "captured"by the Economic Development Authority so that the City of Elk River can <br /> recover the $150,000 in tax increment assistance. After these funds have been repaid, Tax <br /> Increment Financing District No. 12 will be decertified, thereby enabling all local taxing <br /> jurisdictions(county, school, city, etc.)to share in the project's property taxes. The <br /> Economic Development Authority for the City of Elk River, Minnesota anticipates that <br /> Tax Increment Financing District No. 12 will exist for approximately eight (8)years; <br /> during which times tax increment funds will be collected for six(6)years. <br /> s:\eda\documentlifno13.doc <br /> • <br />