EDSR MEMORANDUM 11-15-1993 - Laserfiche WebLink

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TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 SUMMARY Kjellberg' s Carpet and Interiors, 16862 Highway 10, Elk River, Minnesota, seeks $165,000 in tax increment financing assistance to support its proposed construction of a 12,000 square foot retail facility in the Elk River Central Business District. Kjellberg' s Carpet will occupy approximately 6 ,000 square feet on the main floor of the retail facility. The remaining 6,000 square feet will be leased space. The new facility will have a finished market value estimated at approximately $625,000 . Construction may begin during the fall of 1993 and will be completed by the spring of 1994 . The Economic Development Authority for the City of Elk River, Minnesota, is proposing the creation of a Redevelopment District pursuant to the Tax Increment Financing Act. Tax increment funds will be used for site preparation costs associated with the redevelopment site. The site is currently owned by the Economic Development Authority and will be conveyed to Kjellberg's Carpet and Interiors subject to the terms and conditions of a Development Agreement. The property taxes produced by the retail facility will be 411 "captured" by the Economic Development Authority so that the City of Elk River can recover the $165,000 in tax increment assistance as well as the other costs outlined in the tax increment budget. After recapturing the project debt, Tax Increment Financing District No. 12 will be decertified, thereby enabling all local taxing jurisdictions (county, school, city, etc. ) to share in the project' s property taxes. The Economic Development Authority for the City of Elk River, Minnesota, anticipates that Tax Increment Financing District No. 12 will exist for approximately twelve ( 12) to thirteen ( 13) years; during which time tax increment funds will be collected for ten (10) to eleven ( 11) years .