09-11-1995 EDA MIN - Laserfiche WebLink

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Economic Development Authority Meeting September 11, 1995 Page 3 ECM Publishers, Inc. would like to know what the City of Elk River and its EDA can offer in the way of incentives to assist with this project. They have three main concerns: 1) customers, 2) employees and their commute, 3) financing and cost. Other considerations include quality of life, crime factor and the arts. ECM is also considering a site it owns in Coon Rapids, Minnesota. The cost and factors are similar between the two cities. Commissioner Holmgren inquired about how many jobs this would bring to Elk River. Jeff Athmann stated that initially approximately 35 to 40 employees would be headquartered in the facility. David Loch, Sherburne County Administrator, supports the acquisition and renovation of the County Administration Building and would recommend to the County Board that it extend ECM's option agreement which expires on September 18, 1995. Commissioner Dwyer assured ECM Publishers, Inc. that Elk River would like the company here. Commissioner Holmgren stated downtown has our attention right now. Commissioner Duitsman went on record for a supplemental grant for the renovation of the Sherburne County Administration building. 8. Public hearing to Consider a Tax Increment Financing Plan for TIF District No. 13 (TL Feedinq Systems, Inc., Expansion) Bill Rubin provided an overview of the TIF request. TL Feeding has requested tax increment financing in the amount of $150,000. TL Feeding is proposing to construct a 30,000 square foot office and manufacturing facility done in phases of 15,000 square feet that will be located on a 3.0 acre lot along Business Center Drive in the Elk River Business Center (Business Park). The project's finished market value (land and building) is estimated at $625,000. It will take six years of collecting increments in order for the City to be repaid. TL Feeding Systems seeks $150,000 in tax increment financing assistance to support its proposed facility. Tax increment funds would be used to "write down" the cost of the land, and for general site development and site preparation costs associated with this project. The EDA is proposing a pay-as- you-go TIF district. As the new facility begins generating taxes, the city rebates the new property taxes back to TL Feeding Systems twice a year - in July and in December. As with the Neos TIF Plan, a consequence of creating a new TIF District is that of a state aid/HACA reduction. Because an "Economic Developme[1t TIF District" would be created for TL Feeding Systems, the state aid/HACA reduction occurs the first year an increment is generated, and, the reduction is the most significant. President Gongoll opened the public hearing.