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<br />. Ehlers and Associates <br />Tax Increment Financing District Overview <br /> <br />City of Elk River <br />Downtown Phase I Tax Increment Financing District No. 22 <br /> <br />Proposed action: <br /> <br />Type of TIF District: <br /> <br />Establishment of Downtown Phase I Tax Increment Financing District No. <br />22 and the adoption of the Tax Increment Financing Plan. <br /> <br />A Redevelopment District <br /> <br />Parcel Numbers: <br /> <br />75-405-0450 <br />75-405-0460 <br />75-404-0140 <br />75-405-0470 <br />75-404-0141 <br /> <br />75-405-0310 <br />75-405-0410 <br />75-405-0420 <br />75-405-0430 <br />75-405-0440 <br /> <br />Location: <br /> <br />Proposed <br />development: <br /> <br />See the attached map <br /> <br />The District is being created to facilitate the redevelopment ofthe area, which <br />includes a four story building with approximately 10,000 square feet of <br />commercial space and 60 for-sale residential units and a three story building <br />with approximately 10,000 square feet of commercial space and 32 rental <br />housing units in the City of Elk River. <br /> <br />Estimated annual tax <br />increment: <br /> <br />$218,284 <br /> <br />Proposed uses: <br /> <br />The TIF Plan contains the following budget: <br />Land/Building Acquisition - Relocation and Demolition ...... 2,590,000 <br />Parking Facilities (pooling) ............................... 350,000 <br />Public Utilities (amount to Sac Wac) . . . . . . . . . . . . . . . . . . . . . . . . 340,000 <br />Interest ............................................. 4,648,400 <br />Administrative Costs (up to 5%) ...........................250,000 <br />TOTAL.. ................. ....... ....... ....... ... $8,178,400 <br /> <br />See Subsection 2-10, page 2-6 of the Plan for the full budget authorization. <br />Additional uses of funds are authorized which include inter-fund loans and <br />transfers and bonded indebtedness. <br /> <br />Form of financing: <br /> <br />A pay-as-you-go note and interfund loans are the primary form of financing. <br /> <br />Maximum duration: <br /> <br />The duration of the District will be 25 years after receipt ofthe first increment <br />by the HRA or City (a total of26 years of tax increment). The date of receipt <br />by the City of the first tax increment is expected to be 2006. Thus, it is <br />estimated that the District, including any modifications of the TIF Plan for <br />subsequent phases or other changes, would terminate after 2031, or when the <br />TIF Plan is satisfied. <br /> <br />Administrative fee: <br /> <br />Up to 10% of annual increment for eligible costs. <br />