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EDA Agenda Memo Page 2 <br /> March 3, 1993 <br /> 4 After conducting the public hearing on the TIF Plan for <br /> TIF District No. 9, the EDA is asked to adopt EDA <br /> Resolution 93-01, which is included in the agenda packet. <br /> 7 . PUBLIC HEARING ON TESCOM LAND SALE <br /> State law requires that an Economic Development Authority <br /> conduct a public hearing on the proposed sale of property <br /> owned by the agency. This public hearing relates to the <br /> proposed sale of land in the Elk River Industrial Park 2nd <br /> Addition. This public hearing was authorized at the <br /> February 8, 1993, EDA meeting. <br /> EDA Commissioners should understand that this site will be <br /> conveyed to Tescom subject to the terms and conditions <br /> that will be outlined in greater detail in a contract for <br /> private development. Typically, the terms and conditions <br /> will include: <br /> - Acquisition Price completely written-down <br /> - As buyer, Tescom is required to begin construction of <br /> an approximately 30,000 square foot facility no later <br /> than a specified date and is required to have the <br /> building completed no later than, say, December 31, <br /> 1993. This will enable the EDA to capture the first <br /> S full increment in 1995 . <br /> Tescom is required to execute a development agreement <br /> and an "assessment agreement" which establishes the <br /> minimum market value for tax purposes on the land and <br /> building. <br /> Action Requested <br /> After conducting the public hearing, the EDA is asked to <br /> approve the sale of land in the Elk River Industrial Park <br /> 2nd Addition to Tescom Corporation subject to the terms <br /> and conditions which will spelled out in greater detail in <br /> a development contract. <br /> 8 . STOCK PURCHASE IN A CERTIFIED DEVELOPMENT COMPANY <br /> EDA Commissioners will recall that the 1993 Work Program <br /> includes an element on evaluating the merits of a <br /> Certified Development Company (CDC) that would assist <br /> small businesses in Elk River. Put simply, a Certified <br /> Development Company is a nonprofit, development group <br /> which assists small businesses with its expansion, <br /> consolidation, or relocation programs . The CDC does this <br /> by packaging a fixed asset (land, building, equipment) <br /> financing program offered through the Small Business <br /> • Administration (SBA) . <br /> I have concluded that a CDC that operates exclusively in <br /> Elk River is not feasible. That is, the Company relies on <br />