5.0.-10.0. EDSR 06-13-1994 - Laserfiche WebLink

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• Small compass with Elk logo: The tag line here is "Pointing • you in the right direction", presumably in Elk River; • Coat/jacket thermometer: The tag line here is "Warming you up to economic development opportunities", presumably in Elk River; • First Aid Kit: The tag line here is "Prescription for expansion or relocation blues", presumably in Elk River; • Miniature Flashlight: The tag line here is "Elk River - a bright spot for economic development opportunities". Prices and sample of each of these items will be available for review by the EDA Commissioners. 9. 1994 Legislative Summary The League of Minnesota Cities developed eight priority issues for the 1994 Legislative Session. Included as a priority was the topic "Development/Redevelopment". The goal of the League was to remove the state aid penalties on Tax Increment Financing for manufacturing • and redevelopment districts. In addition, additional funding for pollution clean=up districts was also pursued. The Elk River EDA went on record in support of certain measures which would further restrict the use of TIF. Although some initiatives which would have resulted in additional restrictions of TIF were proposed this year, none were adopted. Some communities successfully pursued an exemption from the state aid penalty for new TIF Districts. The most notable local initiative came from St. Cloud as a bill was successfully introduced to exempt St. Cloud and Fingerhut Corporation from the state aid loss restrictions and other restrictions found in the TIF Law. For example, St. Cloud will collect tax increments from the Fingerhut project for up to 25 years. Normally, a City may only collect increments for up to eight years for an economic development TIF District. Further, the City is exempted from the state aid loss as a result of creating a new TIF District. It is further understood that a $500,000 Economic Recovery Grant awarded to the city, and presumably loaned to Fingerhut, will be forgiven. It is estimated that the incentive package to Fingerhut will total about $13,000,000 in those 25 years.