12-05-1988 EDA MIN - Laserfiche WebLink

Home Browse Search

Page 5 . EDA Minutes December 5, 1988 Linda Norah questioned why TIF is used for an elaborate building in the downtown area, but not in thecommerical area on Highway 169. COMMISSIONER TRALLE MOVED TO DIRECT CITY STAFF TO PREPARE A TIF REDEVELOPMENT PLAN FOR THE EDA TO CONSIDER REGARDING THE PROPOSED HARDWARE STORE PROJECT. COMMISSIONER SCHULDT SECONDED THE MOTION. Commissioner Schuldt questioned where the additional funds were coming from for the boardwalk. He indicated that by granting the TIF the City would be creating an unfair competitive edge. He further indicated that the issue is proper or improper use of TIF and stated that using TIF for this project would be improper. Mr. Fursman indicated that the City has an open door policy regarding TIF and any other Economic Development tools. He stated that the key to using such funds is to stick to the "but for" test which allows for the use of TIF if the project would otherwise not happen. Commissioner the help of whether the downtown area Holmgren stated many other people develop projects without TIF. He questioned the need of such a large building and City needs 30,000 square feet of commercial area in the when the mall has trouble keeping tenants. . Commissioner Dobel stated that if phase one is developed on the boardwalk, there are still phases 2,3, and 4 that must be funded through unknown means. Commissioner Tralle indicated that an opportunity to make something better of the community, and an opportunity which we get once in a lifetime, has presented itself to Elk River. He stated that if this is denied it will send a negative image to industry and will affect the City's growth for years to come. THE MOTION FAILED 2-3. COMMISSIONERS DOBEL,HOLMGREN, AND SCHULDT VOTED AGAINST THE MOTION. 6.1. Expense Reimbursement to the City The City Administrator indicated that the EDA has incurred expenses through November 7, 1988, in the amount of $13,028.05. He indicated that the EDA had previously approved the expenses of $11,148.68 and that an additional $1,879.37 was incurred for the use of professional services to BDS. Larkin Hoffman and advertising costs in the Minnesota Real Estate Jorna1. JIM TRALLE MOVED TO APPROVE A CHECK IN THE AMOUNT OF $13,028.05. HAROLD DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. . At 11:20 p.m. Commissioner Gunkel indicated that the meeting of the Economic Development Authority was continued to Monday, December 12, ;!6~ River City Hall, 7.00 p.m. Sandy Thackeray Deputy City Clerk