06-19-1995 CC MIN - Laserfiche WebLink

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Elk River City Council Minutes June 19, 1995 Page 6 e Mayor Duitsman opened the public hearing. Jack Mowry addressed the Council regarding his reasons for expansion. He noted that at the current time, Metalcraft and Neos are in the same building. He indicated that both businesses need room for expansion. Mr. Mowry noted that the expansion of the businesses will provide for up to three more full time people than are currently employed within the next six years. Bill Rubin reviewed the two issues which were discussed by the Economic Development Authority during its public hearing on June 12, 1995. Those issues included the loss of lGA and HACA funds as a result of the new TIF District and the maximum amount of the TIF grant. Bill Rubin noted that the city's TIF pOlicy allows a maximum grant based on 15 percent of the market value of any project. He noted that 15 percent of the estimated $400,000 market value of this request would amount to a $60,000 TlF grant. Bill Rubin further noted that the total amount of lGA and HACA reductions the city would realize based on a $60.000 request would be approximately $24.400 over a five year TlF collection period. Bill Rubin explained that new legislation allows a city or Tax Increment Authority to opt out of the lGA/HACA reduction by contributing a 10 percent "qualified local contribution." There being no further comments from the public, Mayor Duitsman closed the public hearing. e Bill Rubin distributed a letter of support for this project from the Elk River Area Chamber of Commerce. Mayor Duitsman noted that he supported the request at 15 percent of the market value of the project and with the city opting out of the lGA/HACA reduction by paying 10 percent of the TlF assistance requested. He requested staff to make a recommendation on how the 10 percent should be funded. COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 95-32, A RESOLUTION RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 12 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATED THERETO LOCATEO WITHIN DEVELOPMENT DISTRICT NO.1. COUNCILMEMBER HOLMGREN SECONOED THE MOTION. THE MOTION CARRIED 4-0. 6. Open Mike No one appeared for this item. 7.13. Riverside Development Reauest to Grant Extension of Preliminary Plat Approval for Cherryhill Bluffs 4th Addition City Planner Steve Ach stated that the developer for Cherryhill Bluffs 4th Addition is requesting an extension for preliminary plat approval. He noted that the Council originally granted preliminary plat approval for Cherryhill Bluffs 4th Addition on May 3, 1993. e COUNCILMEMBER HOLMGREN MOVED TO GRANT A PRELIMINARY PLAT EXTENSION FOR CHERRYHILL BLUFFS 4TH ADDITION. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.