5.1. SR 07-11-2005 - Laserfiche WebLink

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13065 Orono Parkway Elk River, MN 55330 April 11 , 2005 Pat Dwyer, Sr. v.P. & CFO The Bank of Elk River 630 Main Street Elk River, MN 55330 Dear Pat, We appreciate the opportunity to respond to The Bank of Elk River's needs and interest in expanding its facilities in downtown Elk River. We recognize the value of The Bank of Elk River's retail and corporate presence downtown and look forward to working with you on the proposed project. The proposed project as discussed at our meeting on March 29,2005 is consistent with the City and HRA's goal for revitalizing downtown Elk River as a vibrant retail and commercial area by stimulating new investment. Based on the preliminary information that's been provided and discussed thus far, staff has prepared this letter as a preliminary proposal for your consideration. Staff supports recommending that the City and Sherburne County contribute to the project via a pay-as- you-go tax rebate of 100% of the increased City and County property taxes as a result of the proposed project for a period of up to 10-years. The actual amount of tax rebate assistance that could be provided under this structure would be based on a number of factors including actual tax rates and market value in the year following construction. Staff estimates that the tax rebate assistance could be within the following range depending on the final increased market value as a result of the project: Increased Market Value $ 2,440,000 (20,000sf @ $122/ sf) Combined City and County Taxes $41.000 annual Total Estimated Amount of Assistance $ 4tO,000 after to-years Increased Market Value $ 3,300,000 (20,000sf@ $165/sf) Combined City and County Taxes $ 55.900 annual Total Estimated Amount of Assistance $ 559,000 after to-year Phone: 763.635.1000 Fax: 763.635.1090 www.cLelk-river.mn.us