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<br />rCI ~'\) <br />( ); <br />!l}{ <br /> <br /> <br />Item #7. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City CouncillEconomic <br />Development Authority <br /> <br />~M: <br /> <br />Paul Steinman, Director of Economic <br />Development <br /> <br />DATE: <br /> <br />January 21, 1999 <br /> <br />SUBJECT: TIF 19/Hohlen Redevelopment Project <br /> <br />Issue <br /> <br />One of the east Elk River public improvement project discussion topics for <br />tonight's meeting will be the various financing issues involving the Hohlen <br />redevelopment project and TIF District No. 19. <br /> <br />. BackI!round <br /> <br />Associated Developers recently closed on the purchase of the Hohlen Mobile <br />Home Park and adjacent Hohlen properties. Associated Developers is now in <br />control of enough of the properties within TIF District No. 19 to proceed to <br />the next steps for redevelopment of these properties into a commercial and <br />industrial component. The EDA has started eminent domain proceedings on <br />the two remaining residential properties within TIF District No. 19. <br /> <br />The current boundaries of TIF District No. 19 include approximately 40 acres <br />of property previously owned by the Vandenbergs. This 40 acre parcel is <br />zoned Business Park and is located adjacent to and south of the proposed <br />commercial redevelopment area. Further conversations with the city's <br />financial consultant and bond attorney have indicated that it is likely that <br />this 40 acre business park parcel cannot be included within the boundaries of <br />TIF District No. 19. At the present time this change does not appear to be a <br />major challenge to accomplishing our previously discussed goal of building <br />the industrial park. One advantage of this change to the boundary of the <br />District is that all of the tax base created in the industrial park will lie <br />outside the TIF District, and therefore provide immediate benefit to all <br />taxing jurisdictions. A potential disadvantage with this proposed smaller <br />. TIF boundary, is that TIF District No. 19 may have to remain in existence for <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 . Fax: (612) 441-7425 <br />