9.0. EDSR 02-14-1994 - Laserfiche WebLink

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Block 2. Tescom Corporation received $153,000 in TIF assistance to support its • expansion project. A production and office facility containing 28,000 square feet was constructed on Lots 2 and 3. The project has a finished market value of$1,200,000 and was completed in December, 1993. There were two modifications to the TIF Plans for TIF Districts No. 1 and No. 3 during 1993. On August 2, 1993, the Elk River City Council approved a budgetary amendment to these plans which authorized the expenditure of $177,000 to assist with the public library expansion. On August 16, 1993, the City Council approved a$50,000 amendment to Plans No. 1 and No. 3 to support a redevelopment project at Main Street and Freeport Avenue. The redevelopment project was proposed by Mr. Dennis Chuba of the Chuba Company. This project, a five-suite office townhouse containing 8,900 gross square feet, was a continuation of a 1992 three-suite office townhouse redevelopment project. The 1993 project will have a finished market value of$565,000. The $50,000 TIF assistance will be used to reimburse the developer for costs associated with demolition, site preparation, and onsite utility extensions. The Elk River HRA agreed to fund 50% of these costs, up to a maximum of$25,000 - thereby reducing the City's obligations from $50,000 to a maximum of$25,000. Construction activities affecting two other TIF Districts were completed during 1993. A 23-unit senior housing project financed through Farmers Home Administration (FmHA) was completed in April, 1993. TIF District No. 10 was created for this project, which • has a finished market value of$800,000. Timron Precision Gear completed the construction of an 11,000 square foot office and production facility on Lot 1, Block 1, Elk River Industrial Park during 1993. TIF District No. 11 was created to support this project. The finished market value of the Timron facility is $350,000. INDUSTRIAL REVENUE BOND On May 18, 1993, closing was held on a $1,500,000 industrial revenue bond (IRB) that was issued by the City of Elk River in 1992 to support the Tescom Corporation expansion project. Proceeds from the IRB were used by Tescom Corporation to construct and equip a 28,000 square foot manufacturing facility for its high purity division. In addition, a small amount of the IRB will be used by Tescom to remodel a portion of its 34,000 square foot facility. This IRB was issued almost one year before its closing. This was due to the June 30, 1992, sunset provision which precluded cities and states from issuing IRB's in support of manufacturing projects and housing related initiatives. In late 1993, Congress granted IRB's a permanent extension, thereby giving cities and states the ability to issue them once again. •