11-15-1993 EDA MIN - Laserfiche WebLink

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Elk River EDA Meeting November 15, 1993 Page 3 e that he has Kjellberg's financial statements of the last four years available for review. President Gongoll opened the public hearing. There being no comments for or against the matter, President Gongoll closed the public hearing. Bill Rubin suggested that the EDA consider extending the TIF District a couple more years to capture the money the City spent for the land acquisition. Commissioner also would be $70,000 by Commissioners concept. Scheel indicated she would be in favor of the TIF Plan and in favor of recovery of the land cost of approximately extending the TIF Plan another two or three years. Holmgren and Dwyer indicated they also agreed with the Commissioner Dietz stated that he has been weighing the TIF Plan against the option of making the land into a park. He stated that the City will not gain anything in the eleven years it is collecting the taxes from the TIF District as the taxes will be used to repay the bonds. He further indicated that this is a business that will not employ a lot of people. e Bill Rubin indicated that this would be a project that the community would be proud of and after fifteen years the City would be gaining revenue. He indicated that if it is a park the City will spend additional money to develop it and to make the site construction ready. Chris Bulow stated that it would cost the City approximately $110,000 to $120,000 to prepare the site for a park. He further indicated that Kjellberg's would create three or four new jobs. COMMISSIONER DWYER MOVED TO ADOPT EDA RESOLUTION 93-5, A RESOLUTION FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 12 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO.1. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 4-2. Commissioners Farber and Dietz opposed. 8. Public Hearing Proposed Sale of the EDA Main Street Redevelopment Site to Kurt Kjellberg/Kjellberg's Carpet and Interiors e Economic Development Coordinator Bill Rubin stated that State law requires an Economic Development Authority to conduct a public hearing on the proposed sale of property owned by an EDA. Bill Rubin explained that this public hearing is to approve the sale of the Main Street Redevelopment Site to Kjellberg's Carpet and Interiors. Bill Rubin further indicated that as previously discussed, the EDA has agreed to extend the TIF District another three years in order to recapture the the money the City paid for the land. He stated that a combination of second mortgage and collection of TIF in those three years will enable the City to recover its acquisition costs.