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<br />Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. <br />Baker Tilly US, LLP trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are <br />separate and independent legal entities. © 2024 Baker Tilly Municipal Advisors, LLC <br />Baker Tilly Municipal Advisors, LLC <br />30 East Seventh Street <br />Suite 3025 <br />St. Paul, MN 55101 <br />United States of America <br /> <br />T: +1 (651) 223 3000 <br />F: +1 (651) 223 3046 <br />bakertilly.com <br /> <br /> <br />, <br /> <br /> <br />May 3, 2024 <br /> <br /> <br /> <br /> <br /> <br />Ms. Diane Arnold, County Auditor/Treasurer <br />Sherburne County Government Center <br />13880 Business Center Drive NW, Suite 100 <br />Elk River, MN 55330 <br />Email: Diane.Arnold@co.sherburne.mn.us <br /> <br /> <br />Re: City of Elk River, Minnesota <br />Public Hearing on Proposed Establishment of Tax Increment Financing (Economic Development) <br />District No. 29 for Heritage Millwork Project <br /> Estimated Fiscal and Economic Impact <br /> <br />Dear Ms. Arnold: <br /> <br />The City of Elk River is commencing the process for consideration of the establishment of a new economic <br />development tax increment financing district. Pursuant to Minnesota Statutes section 469.175, subdivision 2, <br />please find enclosed a draft copy of the Tax Increment Financing Plan for the proposed TIF District and the <br />“fiscal and economic implications of the plan” as listed below: <br /> <br />1. The total amount of tax increment that will be generated over the life of the TIF district is estimated to be <br />$2,016,791. <br /> <br />2. To the extent the facility in the proposed TIF District generates any public cost impacts on city-provided <br />services such as police and fire protection, public infrastructure, and borrowing costs attributable to the <br />district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion <br />captured by the District. The City does not anticipate issuing tax increment revenue bonds in conjunction <br />with this project but reserves the right to issue bonds as necessary to facilitate development. <br /> <br />3. The amount of tax increment over the life of the TIF District that would be attributable to school district <br />levies, assuming the School District’s share of the total local tax rate for all taxing jurisdictions remained <br />the same, is estimated to be $480,843. <br /> <br />4. The amount of tax increment over the life of the TIF District that would be attributable to county levies, <br />assuming the County’s share of the total local tax rate for all taxing jurisdictions remained the same is <br />estimated to be $735,555. <br />Page 13 of 64