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<br />N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\Joint Finance Committee Agenda <br />Packets\2020\09162020 Special Meeting\4.1 sr Shoot Steel TIF Application Review.docx <br /> The developer indicated Owner Cash Equity in the Shoot Steel project of $298,258, <br />equivalent to 9.96% percent equity in the project. Which is slightly less then our minimum <br />requirement for equity investment. <br />3. TIF will not be used in circumstances where land and property price is of fair market value. <br /> The developer paid fair market value for the EDA property. <br />4. The developer shall demonstrate a market demand for the proposed project. TIF shall not be <br />used to support purely speculative projects. <br /> The developer is proposing to relocate from their Ramsey location. <br />5. The developer shall adequately demonstrate, to the city’s sole satisfaction, an ability to complete <br />the proposed project base don past development experience, general reputation, and credit <br />history, amount other factors, including size and scope of the proposed project. <br /> The city and the developer will enter into a development agreement outlining conditions <br />and expectations of the proposed project. <br />6. For the purposes of underwriting the proposal, the developer shall provide any requested market, <br />financial, environmental, or other data requested by the city or its consultants. <br /> The developer provided all requested materials as part of the application. <br /> Mikaela Huot from Baker Tilly Municipal Advisors will present the but for analysis. <br />7. The City of Elk River shall only use TIF to encourage economic growth and development within <br />the city limits. <br /> The project is located within the city limits of Elk River. <br /> <br />Financial Impact <br />Per the city policy, the total estimated gross increment available over 9 years for economic development is <br />$269,050. The developer could receive 90 percent of the gross increment over 15 years of $241,274, or a <br />present value of $192,196. <br /> <br />Attachments <br /> Shoot Steel TIF Application and Supporting Materials <br /> Baker Tilly analysis and supporting documents dated September 11, 2020 <br />