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Steering Committee Minutes Page 2 <br />July 14, 1994 <br />----------------------------------------- <br />�Ippno <br />5. Introduction of Commercial Development !n)©�j/��%� <br />5.1. General Information on Commercial Retail Sales Construction Tax �( and x NS, <br />Imaacts <br />5.2 Evaluation of Existing Commercial Districts <br />Steve Ach reviewed the following exhibits: <br />Exhibit A - Retail Sales and Effective BuYina Income for Sherburne County <br />0988-1992) Medium household income, retail sales and buying power has <br />increased over the years. <br />Exhibit B - Elk River Retailers 1992 Retail Sales <br />Gross retail sales broken down by Standard Industrial Classification (S.I.C.) <br />codes <br />Exhibit C - 1988-1992 Retail Sales in Sherburne County/Elk River/Percent of <br />County Sales <br />Discrepancies can occur due to reporting factors (i.e., mailing <br />address/business address). <br />Exhibit D - 1992 Retail Sales Estimate <br />Summary memo of Exhibits A, B, and C, prepared by Bill Rubin <br />Exhibit E - Residential/Commercial/Industrial Construction Value 1988 1993 <br />1994 expected to increase significantly, due to Elk Park Center, Hillside <br />Crossings, and surrounding commercial activity. <br />Exhibit F - Commercial and Industrial Contribution to City's Tax Capacity <br />Commercial and Industrial contribute $3.85 million in taxes, representing <br />44.5% of tax capacity. Importance of both industrial and commercial for <br />a community should not be under estimated. <br />Exhibit G - Taken from Growth Management Study for City of Lakeville <br />This study illustrates how industrial and commercial property positively <br />benefit a community's tax base. Net result would be similar in Elk River. <br />Industrial and commercial generate a majority of revenue for cities and <br />school districts. Single family development demands more services <br />(expenditures) and contributes less tax revenue. <br />Chairman Minton noted that the net impact of commercial in the <br />Lakeville study was nearly twice as much as industrial, indicating <br />commercial was more important. Gary Santwire stated that he felt that it <br />would be true in considering tax dollars only, but if you are considering <br />places for people to work who live here, that would a different category. <br />Dick Hinkle stated that this information does not mention the value of <br />industrial in creating new jobs. <br />