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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity. Updated: August 2020 <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To <br />Joint Finance Committee <br />Item Number <br />4.1 <br />Agenda Section <br />General Business <br />Meeting Date <br />September 29, 2020 <br />Prepared by <br />Colleen Eddy, Economic Development Specialist <br />Item Description <br />Riverwalk Apartments TIF Discussion <br />Reviewed by <br />Amanda Othoudt, ED Director <br />Reviewed by <br />Cal Portner, City Administrator <br /> <br />Action Requested <br />Review application and provide a recommendation to the Economic Development Authority to establish Tax <br />Increment Financing District. <br /> <br />Background/Discussion <br />Sun Rae Apartments, LLC submitted an application for Tax Increment Financing to construct two 89-unit <br />apartment complexes located at 17354 Zane Street, Elk River. This project is proposed as a Redevelopment TIF <br />District. <br /> <br />The applicant is requesting 90% of the available increment over 26 years. The project is proposed to be completed <br />in two phases with the first phase completed by 2023 and the second phase completed by 2027. Annual real estate <br />taxes collected between the three parcels is $10,706. The estimated real estate taxes upon completion of Phase I is <br />193,964 annually. Phase II is estimated at the same, for a total of $387,928 annually. <br /> <br />Public Purpose <br />The City of Elk River will consider TIF for projects that achieve one or more of the following: <br />1. Demonstrate long-term benefits to the community. <br /> The proposed redevelopment project removes a long-standing blighted property <br /> The redevelopment project includes a park and trail opportunity for future generations <br /> The redevelopment will increase the housing stock by 178 units in Phase I and II <br />2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment <br />and/or attractive wages and benefits through: <br /> Diversification of the local economy <br /> Developer indicated a total of 4 jobs at approximately $20/hour would be created upon <br />completion of the project: <br /> Resident Manager <br /> Caretaker <br /> Leasing Agent <br /> Maintenance <br />3. Significantly increases the city’s commercial and industrial tax base. <br /> The project proposed is a multi-family housing complex.