08-16-1993 CC MIN - Laserfiche WebLink

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. . . Elk River city Council Meeting August 16, 1993 Page 6 will be approximately $682,000, and construction will September, and completion in 1994. in begin Bill Rubin, Economic Development Coordinator, stated that the Chuba Company is requesting TIF assistance in an amount up to $60,000. He stated that the TIF funds would be used to reimburse the developer for costs associated with the redevelopment project. He stated that these are eligible costs as permitted by Minnesota Statutes and involve demolition, foundation removal and compaction, and related site preparation expenditures. Bill Rubin stated that TIF was started as an urban renewal tool. He indicated that the Main Street corridor is a critical corridor in the City of Elk River. He further stated that staff considered other funding options including the Revolving Loan Fund,however, the Revolving Loan Fund would not apply as there would be no security interest with the project. He indicated that staff also considered the option of creating a new TIF District, but it did not meet the requirements of the State Statute. Jeff Gongo11, representing the Economic Development Authority, stated that the project is a valid project and Mr. Chuba's 1992 project is a proven asset. He indicated that the use of TIF is consistent with the State Statute. He requested that the Council approve staff's recommendation to approve the modification to TIF Plans No. 1 and No.3. Mayor Duitsman stated that he believes Main Street is an important corridor to the City of Elk River. He further stated that he felt the City could fund up to $50,000 and that the City Council should request the HRA to pick up half of that cost. Counci1member Dietz questioned whether the Chuba Company would be receiving an advantage over existing businesses. Bill Rubin stated that the Chuba Company is paying a premium for the sites because of the existing structures on the property. He indicated that extraordinary out-of-pocket costs would be needed to remove the building from the property. Counci1member Dietz also questioned the amount of TIF assistance with this project as compared to the previous project. Bill Rubin indicated that the Chuba Company would be required to document all of the costs associated with the project and therefore would only be reimbursed for actual costs incurred. There being no further comments from the public, Mayor Duitsman closed the public hearing. The City Council discussed approving the modification to TIF Plans No. 1 and No.3, but desired to limit Mr. Chuba's request to $50,000. It was the consensus fo the Council to limit the modification to $50,000. The modification to TIF Plans No. 1 and No. 3 will reflect a $50,0000 expenditure.