10-11-1993 EDA MIN - Laserfiche WebLink

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Elk River EDA Meeting October 11, 1993 Page 2 e Bill Rubin indicated that the Economic Development Authority informally granted Chris Bulow a 30-day extension to the original 90-day Exclusive Option which was previously granted by the Economic Development Authority in June. He indicated that Chris Bulow has been working with Kjellberg Carpets as it is their intention to redevelop the site and operate a retail business consisting of carpet sales at that location. Chris Bulow informed the EDA that the proposed building will be approximately 12,000 square feet in size. He indicated that a request for tax increment financing will be made for the preliminary improvements of the property such as site preparation, foundation stabilization, fill, compaction, etc. He noted that the amount of TIF funds requested would not exceed $200,000. This figure includes capitalized interest and other city costs. commissioner Duitsman stated that this is very expensive for the City and indicated that the proposal does nothing to orientate the development to the river and further that there is no guarantee on repayment of the TIF funds. Bill Rubin stated that with previous tax increment agreements the City did not require a guarantee of TIF repayment by the developer. Rather, the City/EDA relies on property taxes to repay the TIF project costs. Chris Bulow indicated that the back of the building will be mostly glass, so as to take advantage of the river view. e Commissioner Holmgren further indicated that City. A park does not indicated that the location is the proposed redevelopment will pay taxes a unique site and pay taxes to the President Gongoll stated that he was encouraged with the proposed retail for the downtown area. He stated that it is a good fit and will help the downtown area. Commissioner than a park. project will at the site. Dwyer stated he would rather see retail in the area rather He indicated that the money that will be spent on the be recovered in the long run if retail businesses located commissioner Farber indicated his concern that the project be started this year. PRESIDENT GONGOLL MOVED TO SCHEDULE A PUBLIC HEARING FOR NOVEMBER 15, 1993, TO CONSIDER A TAX INCREMENT FINANCING PLAN TO REDEVELOP THE EDA MAIN STREET SITE, AND FURTHER, TO AUTHORIZE THE PREPARATION OF A TAX INCREMENT FINANCING PLAN FOR THE EDA MAIN STREET'S REDEVELOPMENT PROJECT, AND FURTHER, TO RECOMMEND THAT THE CITY COUNCIL CONSIDER SCHEDULING A PUBLIC HEARING FOR NOVEMBER 15, 1993, TO CONSIDER ADOPTION OF THE TIF PLAN. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-2. Commissioners Duitsman and Dietz opposed. e Commissioner Duitsman stated that he did not think the City would recapture the TIF funds through taxes.