04-08-1996 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes April 8, 1996 Page 2 e building at any time. Harlan Jacobs suggested the possibility of forming an Elk River Development Corporation and purchasing the county building or a similar building outright. It was the consensus of the EDA to continue exploring all building options. Roger Jensen reviewed the need to identify new investors for the Capital Fund. 7. Consider Recommendation to City Council to Terminate TIF District No. 12 INeos) Executive Director Pat Klaers requested the EDA to recommend that the City Council terminate Tax Increment Financing District No. 12. He indicated that the Neos project was not constructed and therefore the District was never certified to the County and no increments were collected. COMMISSIONER DWYER MOVED TO RECOMMEND THAT THE CITY COUNCIL APPROVE A RESOLUTION TERMINATING TIF DISTRICT NO. 12. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Public Hearina on Tax Increment Financina for Tax Increment Financina District No. 14 I Marketech, Inc. Proiect) e Executive Director Pat Klaers reviewed the request for Tax Increment Financing District No. 14 from Marketech, Inc. He explained that the request is from Rich Duggan, owner of Marketech, Inc. Marketech needs more room for expansion. Mr. Duggan is proposing to construct a 9,324 square foot office and manufacturing facility on Lots 6 and 7, Block 1, McChesney Industrial Park. Pat Klaers indicated that the total market value of the project is about $400,000. Mr. Duggan is requesting $65,100 in tax increment financing assistance. The tax increment funds would be used to write down the cost of the land on a pay-as- you-go basis for this project. The Executive Director explained that Marketech would retain its existing 22 jobs and create 13 new jobs over the next three years. The Executive Director explained that because the City is the local unit of government creating the District it is responsible for fulfilling the penalty clause as required by state law. Pat Klaers suggested that the Council opt out of the local government aide penalty by making a qualified 10% contribution to the District. President Gongoll opened the public hearing. Rich Duggan introduced himself as owner of Marketech and indicated that the company needs room for expansion an city financial help to do the project. There being no further comments, President Gongoll closed the public hearing. e COMMISSIONER SCHEEL MOVED TO ADOPT EDA RESOLUTION 96-2, A RESOLUTION FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0.