09-18-1995 CC MIN - Laserfiche WebLink

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Elk River City Council Minutes September 18, 1995 Page 6 e It was the consensus of the Council that this issue be put on the Planning Commission agenda and be reviewed by the Council on October 2. 5.14. Public Hearina on Tax Increment Financina PI.an for Tax Increment Financing District No. 13 ITL Feedina Systems, Inc. Exoansionl Economic Development Coordinator Bill Rubin stated that TL Feeding Systems, Inc. is requesting tax increment financing assistance in the amount of $175,000 for the proposed construction of a 15,000 square foot office and production facility on a three acre lot in the Country Crossing Business Park. Bill Rubin explained that the tax increment funds will be used to write down the acquisition price of the development site and for site preparation and development costs. Bill Rubin further explained that the facility will have a finished market value estimated at $675,000 which produces property taxes of approximately $30,700 per year. The Economic Development Authority anticipates that Tax Increment Financing District No. 13 .will exist for approximately eight years during which tax increment funds will be collected for six years. Mayor Duitsman opened the public hearing. Pat Pelstring, Public Resources Group, addressed the Council regarding the T1F request. He also updated the Council on the status of the project. e Mayor Duitsman questioned what type of commitment the owners are providing to the project. Economic Development Coordinator Bill Rubin explained that T/F District No. 13 is structured as a pay-as-you-go district which requires the company to incur the cost of acquiring the site and conducting the site development and site preparation activities up front. In addition, according to the TIF application, the owners were contributing another $100,000 as equity. When combined with the acquisition and site preparation costs, the equity totals nearly 30 percent of the costs as outlined in the T1F application. Mayor Duitsman indicated his concern that the T1F request is more than 15 percent of the project's finished market value and indicated that this is deviating from the city's policy. There being no further comments, Mayor Duitsman closed the public hearing. It was the consensus of Councilmembers Holmgren, Dietz, and Scheel that although the TJF request was in excess of 15 percent of the market value, the city may have to deviate from its policy at this time in order to get the Business Park started. At its public hearing on the T L Feeding Systems T1F request, the Elk River EDA recommended that the City Council waive the 15 percent maximum TIF grant for this project. e COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 95-62. A RESOLUTION fOR THE CITY OF ELK RIVER RELATING TO THE ESTABLISHMENT Of TAX INCREMENT FINANCING DISTRICT NO. 13 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATED THERETO LOCATED WITHIN