5.1 PCSR 06-27-2017 - Laserfiche WebLink

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City of Elk River, Minnesota Proposed Redevelopment TIF District No. 24 (The Truck Shop Project) Planning Commission Meeting to Review Draft TIF Plan June 21, 2017 Page 2 A TIF District must be established within a Project Area. The boundaries of the Tax Increment Financing District (TIF District) are within the Development District No. 1. Tax increment revenues of the TIF District are generated from incremental growth within the district and are allowed to be spent both within the boundaries of the TIF District and with some limitations outside the boundaries of the District and within the Project Area. Background The City of Elk River is considering the establishment of a Tax Increment Financing (TIF) District to assist with financing a portion of the costs associated with redevelopment of the properties comprising of the TIF District. Those redevelopment costs include acquisition, demolition and installation of public improvements, subject to feasibility and availability of revenues. A business is planning the construction of an approximate new 7,216 square foot facility to operate a light maintenance facility for the Beaudry Oil existing fleet. The facility will be used for minor repair for Beaudry Oil & Propane Fleet (not open to the public), which includes oil changes, replacing tires, changing brakes, minor service, light maintenance, cleaning and detailing. The City has identified additional public improvement costs related to the redevelopment project including acquisition of additional blighted properties adjacent to the proposed project site, as well as infrastructure improvements to allow better access to the project site. Following acquisition and demolition of the blighted properties, it is anticipated that a second development will occur in the District, generating additional taxable value and increment that will be available to financing the redevelopment costs. The City anticipates using tax increments to finance the identified redevelopment costs, including eligible related administrative expenses. Action The Planning Commission is being asked to determine that the project within the TIF District meets the following through adoption of the accompanying resolution: (4) The TIF Plan conforms to general plans for development of the City as a whole. Thank you for the opportunity to be of assistance to the City of Elk River. Please contact me at 651 - 223 -3036 or mhuot(cDspringsted.com with any questions or to discuss.