11-30-2021 JFC MIN - Laserfiche WebLink

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Elk River Joint Finance Committee Held at Elk River City Hall Tuesday, November 30, 2021 Members Present: Charlie Blesener, Ryan Hardin, Rhonda Magnussen, Dan Tveite, Nate Ovall, Larry Toth and Jim Gromberg Members Absent: Chad Vitzthum Staff Present: Brent O’Neil, Economic Development Director Others Present: Mikaela Huot, Baker Tilly (via phone conference) and Patrick Briggs, Briggs Companies 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Joint Finance Committee was called to order by Chair Tveite at 7:38 a.m. 2. Consider Agenda Motion by Blesener and seconded by Gromberg to approve the Joint Finance Committee agenda. Motion carried 7-0. 3. Consent Agenda Motion by Hardin and seconded by Ovall to approve the October 26, 2021, Joint Finance Committee meeting minutes. Motion carried 7-0. 4.1 TIF Application Jackson Hills Second Addition Mr. O’Neil introduced Mikaela Huot and Patrick Briggs to present on the TIF application for Jackson Hills II. Mr. Briggs spoke to the site and his vision for the project. Ms. Huot gave a presentation summarizing the project and her analysis of the request. Ms. Huot highlighted the qualifications of the project as a Housing TIF district, the use of funds, and the “but-for” analysis. The analysis indicated soil conditions necessitating remediation are the major contributor to extraordinary project costs anticipated for the project up to $850,000. The developer could be reimbursed for those costs over the life of a 15-year TIF. It also found that the project could not support debt service payments without TIF, and the debt service coverage ratio and projected returns are under market standards. Several elements of the project were discussed by the committee. Site layout was confirmed th to be on the southern portion of the property, immediately across 6 Street from Jackson Hills I. Mr. Briggs confirmed that approximately six feet of peat, on average, would need to