7.1 SR 10-05-2020 - Laserfiche WebLink

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City of Elk River, Minnesota Section F Duration of the TIF District Economic development districts may remain in existence 8 years from the date of receipt by the City of the first tax increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be through the year 2030, due to anticipated receipt of first increment in 2022). Modifications of this plan (see Section AA) shall not extend these limitations. Section G Property to be Included in the TIF District The TIF District is an area of land comprising of the parcels listed below that are located within the Project Area. A map showing the boundaries of the TIF District is shown in Exhibit I. Parcel ID Number Legal Description 75-757-0205 1 LOT 1, BLK 2 SUBJ TO EASEMENT OF RECORD The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The City may acquire and sell any or all of the property located within the TIF District. It will not be acquiring any property at this time but will be selling the property to the developer to facilitate development. Section I Specific Development Expected to Occur Within the TIF District The proposed project is anticipated to consist of the acquisition of approximately 4.34 acres at 17565 Tyler Street Northwest in the City of Elk River by the developer from the City. The developer is planning to construct an approximate 20,000 square foot warehouse building on the site. The proposed uses of the building include primarily production and operations with a small office portion for operations directly related to the business. The square footage of the business within the District will comply with the requirements of an economic development district with at least 85% being used for a qualifying purpose and less than 15% will be office space. It is anticipated that the City will use the tax increment to finance a portion of the extraordinary acquisition and infrastructure improvement costs that are necessary for this project to proceed. In addition, the city may use tax increment for related administrative expenses, and any other eligible expenditures associated with development of the site that may include additional necessary public improvements. Construction of the project is expected to commence in 2020 and be 100% assessed and on the tax rolls as of January 2, 2021 for taxes payable in 2022. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as an economic development district; SPRINGSTED Page 3