5.2. SR 02-06-2006 - Laserfiche WebLink

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MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development Scott Clark, Community Development Director DATE: January 3, 2006 SUBJECT: Consider Tax Rebate Financing Application for The Bank of Elk River Expansion Attachments . Tax Rebate Financing Application - The Bank of Elk River . City of Elk River Tax Rebate Financing Policy . Staff Correspondence to Pat Dwyer, The Bank of Elk River dated April 11 , 2005 . July 11, 2005 City Council Meeting Minutes . Tax Rebate Financing Review Worksheet . Letter from Sherburne County Assessor dated December 28, 2005 . Abatement Fact Sheet - Ehlers & Associates, Inc. Issue The attached application for Tax Rebate Financing (TRF), or abatement, has been submitted by The Bank of Elk River. The Bank is requesting TRF assistance for the expansion of 20,000 square feet to their existing facility downtown. Specifically, the applicant is requesting the City rebate up to $300,000 of its portion of the new property taxes generated from the project, and the County rebate a matching share for a combined total of $600,000. Normally the City has provided tax abatement to manufacturing businesses. Under the City's attached TRF Policy Section V. Project Qualifications "commercial redevelopment or rehabilitation" proposals can be considered for the use ofTRF. It is appropriate for the HRA to review and provide recommendation to the City Council of this request since the project involves significant redevelopment in the downtown area. Background Earlier in 2005 staff was notified by representatives of The Bank of Elk River about preliminary discussions to expand the Bank's corporate offices to accommodate an additional 20,000 square feet for current and future growth of the company. The Bank had