EDSR MEMORANDUM 02-13-1995 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY • MEMORANDUM TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, EXECUTIVE DIRECTO/4\16_ DATE: FEBRUARY 13, 1995 SUBJECT: AGENDA MEMO FOR FEBRUARY 13, 1995 MEETING 5. February Financial Update This item may be distributed to the EDA at the February 13 meeting. If not, it will be deleted from the agenda. 6. Resolution Affirming the EDA's Intent to Redevelop its Site di At a previous meeting, EDA Commissioners and its Executive Director discussed the merits of transferring ownership of its redevelopment site in the 600 block of Main Street to the City of Elk River. This concept was considered based on the following: • Property held by an EDA for economic development purposes is considered "tax-exempt"for a limited period of time (generally not to exceed 6 or 7 years; property held by a municipality is "tax-exempt" for an unlimited period of time). • The County Assessor's office plays a substantial role in determining whether or not property is being held by an EDA for "economic development purposes". • Now that the EDA's redevelopment site has been filled and is landscaped, even though this is done as a interim measure, someone could suggest that the property is more like a park than a redevelopment site and therefore, is not being held for economic development purposes. This could result in the EDA paying property taxes on its site. • To avoid the potential taxation issue, perhaps it made sense for the City to own the interim park site. EDA Commissioners authorized its Executive Director to contact" the • Assessor's office for suggestions and insights into this matter. The P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment