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ek,/ *-\ <br /> ( ( ITEM NO. 5.13 <br /> it <br /> ikRiver <br /> y of � MEMORANDUM <br /> TO: Planning Commission <br /> FROM: Pat Klaers, City Ad . istra,,,or <br /> DATE: May 22, 1996 <br /> SUBJECT: Review of TIF Plan for <br /> TIF District No. 15 <br /> On Monday, June 10, 1996, the Elk River City Council will hold a public <br /> hearing to consider a Tax Increment Financing (TIF) Plan for TIF District <br /> No. 15. Pursuant to Minnesota Statutes, the Planning Commission is <br /> required to review and comment on the proposed TIF Plan prior to the City <br /> Council conducting a public hearing. This is done to ensure that the land use <br /> of the project is consistent with the city's Comprehensive Plan. <br /> The Elk River Economic Development Authority (EDA) is proposing the <br /> • creation of TIF District No. 15. We are proposing the creation of TIF District <br /> No. 15 for McChesney Cabinets. The District will be for one parcel: Lot 9, <br /> Block 1, McChesney Industrial Park. With the completion of this project <br /> there will be only one lot remaining in the McChesney Industrial Park. <br /> McChesney Cabinets is a manufacturer of custom cabinets and countertops <br /> and specialty wood items. The company seeks approximately $35,000 in TIF <br /> assistance to support the construction of an approximately 10,000 square foot <br /> facility on Lot 9. Tax increment funds will be used to write down the value of <br /> this lot on a pay-as-you-go basis. With this project, McChesney Cabinets will <br /> go from a 3,000 square foot facility to a 5,000 square foot facility. The <br /> balance of the facility will be leased out to another local company, Winlectric, <br /> for its expansion. With this project, McChesney Cabinets will add two new <br /> employees over the next three years. McChesney Cabinets currently has two <br /> employees. Additionally, it is anticipated that Winlectric will be adding <br /> another employee with their expansion. Overall this project adds 10,000 <br /> square feet of industrial space in the community and adds another few <br /> employees, plus the spin-off benefit of another company expanding into the <br /> space that McChesney Cabinets and Winlectric currently occupies. <br /> To support the request for assistance, the EDA proposes to create an <br /> • economic development TIF District. New property taxes generated by the <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />