7.1 EDSR 05-20-2024 - Laserfiche WebLink

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City of Elk River, Minnesota Baker Tilly Municipal Advisors, LLC Page 3 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 for the maximum duration allowed by law (projected to be through the year 2034, due to anticipated receipt of first increment in 2026). 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 is located within the Project Area. A map showing the boundaries of the TIF District is shown in Exhibit I. Parcel ID Number * Legal Description * 75-00929-0020 Sec.11 T32N R26W OUTLOT B * portion of property identified by existing identification and legal description will be new project 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 and will be selling the property to facilitate development. Section I Specific Development Expected to Occur Within the TIF District The proposed project is anticipated to include the construction of an approximate 113,000 square foot industrial facility (Phase 1) with a possibility of an additional 40,000 square foot expansion (Phase 2). Tax increment is a financing tool the City is planning to use for financing of a portion of the eligible costs associated with construction of the project. The square footage of the completed building will comply with the requirements of an economic development district in which the project will be with a qualifying purpose. It is anticipated that the City will use the tax increment to finance all or a portion of the land acquisition costs, plus potential for related site development and other related 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 Phase 1 of the project is expected to commence in 2024 and be 50% assessed and on the tax rolls as of January 2, 2025, for taxes payable in 2026. 100% of construction is to be completed in 2025, assessed 2026 for taxes payable in 2027. Phase 2 that would include the 40,000 square foot expansion, if it proceeds would be constructed 2-3 years later and could be completed in 2026, assessed 2027 for taxes payable in 2028. Page 19 of 64