9.0. EDSR 02-14-1994 - Laserfiche WebLink

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DTED FEDERAL BLOCK GRANT . In October, 1992, the Department of Trade and Economic Development (DTED) advised the City of Elk River that it would award a $250,000 federal block grant to support the 28,000 square foot Tescom Corporation expansion. The grant is intended to leverage private financing and local incentives in support of an expansion. The grant must meet one of three federal objectives: a. benefit to low- and moderate-income (LMI)persons; b. prevention or elimination of slums and blight; or c. alleviation of urgent community development needs. The City of Elk River intended to use the proceeds of the grant award as a low-interest loan to Tescom to assist it with the purchase of additional machinery and equipment necessitated by the expansion of its high purity division. Tescom proposes that it will create 45 new, permanent jobs as a result of this expansion. Many of these jobs will benefit LMI persons and families. Closing on the block grant loan to Tescom occurred on May 18, 1993. According to a semi-annual progress report on the DTED loan, Tescom had created 34 new jobs as of December 31, 1993. • EDA MAIN STREET REDEVELOPMENT SITE As 1993 began, the EDA was approaching the expiration of an exclusive option it had extended to REP, Ltd., of Elk River. The option expired on January 11, 1993, and REP did not request another extension. Subsequently, Mr. Chris Bulow of the Bruce Company expressed an interest in the redevelopment site. An exclusive option was granted to the Bruce Company. Mr. Bulow is proposing that Kurt Kjellberg/Kjellberg's Carpet and Interiors construct a two-story 12,000 square foot retail facility on the Main Street site. Kjellberg's Carpet, which was recently awarded a Carpet One franchise, would occupy the 6,000 square foot level at the street grade. The lower level would be leased to other retail/office/commercial users. On October 11, 1993, the Elk River EDA considered a request by Kjellberg's Carpet for tax increment financing assistance. The EDA approved the TIF Plan for TIF District No. 12 following a public hearing on November 15, 1993. The City Council delayed its public hearing until December 13, 1993. No action was taken following the hearing. On December 20, 1993, the City Council denied the TIF request but agreed to reconsider it at a meeting scheduled for January 10, 1994.