03-13-1995 EDA MIN - Laserfiche WebLink

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Economic Development Authority Meeting March 13, 1995 Page 3 Discussion was held regarding possible payment options for the micro-loan request. COMMISSIONER DWYER MOVED TO APPROVE A $48,000 LOAN TO T.J. PROPERTIES SUBJECT TO THE FOLLOWING CONDITIONS: · THE COMPLETION OF AN APPRAISAL TO ENSURE THAT THE LOAN TO VALUE RATIO DOES NOT EXCEED 90% · AGREEMENT TO APPLY PROCEEDS FROM THE SALE OF PROPERTY AT 907 MAIN STREET TO PAY OFF THE EDA LOAN ON THE FREEPORT AVENUE MAIN STREET OFFICE PROJECT · THAT THE LOAN REPAYMENT BE SET UP WITH A 15 YEAR AMORTIZATION WITH A BALLOON PAYMENT TO PAY OFF THE BALANCE OF THE LOAN IN TWO YEARS PRESIDENT GONGOLL SECONDED THE MOTION. MOTION CARRIED 4-0. 8. Consider Proposed Leqislation Placinq Additional Restrictions On Tax Increment Financina The Executive Director Bill Rubin informed the EDA that House File 147 has been introduced as proposed legislation which would further restrict the use of tax increment financing. Bill Rubin indicated that the legislative restrictions on existing districts may have an adverse effect on TIF Districts No. 1 and NO.3 in Elk River. He further indicated that House File 147 may affect the City's ability to access funds from a TIF District that is already decertified. The Executive Director informed the EDA that he would continue to monitor the legislation. It was the consensus of the EDA that House File 147 has an adverse impact on current or decertified district~ in Elk River and it may be necessary to initiate amendments to respective TIF Plans. 9. Discuss EDA Topics For State Of City Presentation President Gongoll reviewed some topics that may be of interest at the State of the City address to be held on March 21 . 10.1 Discussion Of Letter Submitted To Bill Rubin From Jay Johnson Executive Director Bill Rubin briefly reviewed a letter which he received from Jay Johnson regarding the EDA's proposed assistance to Tony Emmerich. Bill Rubin indicated that it is Mr. Emmerich's feeling that the EDA's assistance of underwriting assessments is of no help to the developer. He indicated that Mr. Emmerich's recommendation to the EDA is to use available funds to pay for the north half of 183rd Street and the utilities, and to pay for the cul-de-sac street and utilities from the Business Center drive south into the Business Park area. Commissioner Dwyer indicated that it was the consensus of the Business Park Task Force that the assistance offered to Mr. Emmerich in the form of underwriting assessments would not be considered a grant. Commissioner Dwyer further indicated he felt this type of assistance would be helpful to the developer and feels that the City and EDA has done its best to offer assistance to the developer. Commissioner Dwyer recommended that Executive Director Bill Rubin contact Mr.