12-05-1988 EDA MIN - Laserfiche WebLink

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Page 4 . EDA Minutes December 5. 1988 Dick Fursman reviewed a financing option for the project which included private financing. TIF and City revolving loans. He indicated that the property as established will not be able to carry itself financially at this time and presented a hypothetical example of using $36.000 in tax increment. It was indicated that $72.000 of increment may be captured and that part of this could be used for the downtown boardwalk as these two projects are related. Mr. Fursman stated that the use of TIF on the hardware property would not be needed for the entire life of the district but would be weened of City help as the property matured. Commissioner Holmgren stated that if the project was less than 1.5 million. the property tax would be cut in half therefore. resulting in less of a debt responsibility to the owners which would make the project more affordable and eliminate the use of tax increment funds. . Commissioner Gunkel indicated that the City has an asset at its back door but has never had the opportunity to use it. Other development plans for focal point in the community have been discussed. She stated that the opportunity is now present to create a focal point and also that the City has already indicated to the victims of the fire that they are willing to lend assistance. She stated that if the City does not create a TIF redevelopment district of the fire site. they are sending mixed signals to the community and also misleading the victims of the fire. Mike Mulrooney. Economic dated December 5. 1988. Increment Financing. Development Consultant. discussed his memo which reviewed precedents for using Tax Ellen Medenwaldt of 12104 Highland Road questioned why Commissioner Schuldt was opposed to the use of tax increment financing for the project. Commissioner Schuldt responded by stating that using tax increment financing money for a boardwalk is not a commercial use; the boardwalk is not a commercial business nor does it generate jobs or money. Gary Santwire stated that tax increment financing is not the only means of financing development property; private enterprise is an alternative. . Cliff Lundberg representing the downtown corporation. discussed the fact that several studies have been done to beautify the downtown area. When the hardware and boardwalk plans were presented to the downtown people they were very pleased with the project as it enhances the downtown and the entire community. There has been talk about using the riverfront for years and this is the time to make it happen. This will be an impetus for everyone else in the downtown area to tie into the boardwalk which will in turn bring more business to Elk River. He indicated that Elk River will gain more tax dollars than they will lose from this TIF TIF redevelopment district. Dave Decker - property owner on Dodge Avenue - Stated he is opposed to the use of TIF when it is used to give competitors an advantage.