08-10-1998 EDA MIN - Laserfiche WebLink

Home Browse Search

EDA Minutes August 10, 1998 Page 2 e date, ask that the EDA make a recommendation to the City Council to participate as an investor in this program. The Commissioners expressed concern what impact the program would have on tax increment financing (TIF). Mr. Darger explained that the loan could be used in addition to T1F. Discussion followed regarding use of funding for projects outside of the city, and who would be contributing to the fund. Mr. Darger noted that the participating lender would be absorbing some of the loss due to the lower interest rate, but they would also have the opportunity to refinance the participant at the end of the five years at market interest rates. Mr. Darger indicated he will continue to update Paul Steinman on the progress of the fund program. 6. Consider Resolution No. 98-4, Aoorovina Tax Increment Financina District No. 20- Suoermats, Inc. Paul Steinman explained that TIF No. 20 is proposed to be used to reimburse the EDA for its purchase of the last remaining lot in the Elk River Industrial Park. Paul noted that the City Council will hold a public hearing for TIF No. 20 on August 24, 1998. The project is proposed to generate approximately $34,000 in annual tax revenues. e Brian Jones, representing Supermats, Inc., explained he has been in the rubber products manufacturing business 11 years which is currently located in Brooklyn Center. Mr. Jones indicated he will have 10 employees to start and hopes to expand to 24 in approximately a year. He noted that he will be leasing 10,000 square feet of space in the new 40,000 square foot building to a tenant with 10 employees. Commissioner Bender asked why type of building Mr. Jones is proposing to build. Mr. Jones indicated he will likely be using tip-up concrete panels. Mr. Jones explained that the concrete panels were only $3-$4 a square foot more than metal construction. COMMISSIONER BENDER MOVED TO APPROVE RESOLUTION 98-4 MODIFYING DEVELOPMENT PROGRAM THEREFOR; AND ESTABLISHING WITHIN DEVELOPMENT DISTRICT NO.1, TAX INCREMENT FINANCING DISTRICT NO. 20, AND ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION 6-0. 7. Consider Resolution No. 98-5, Aoorovina 1999 EDA Levv Paul Steinman indicated that the city must certify its total 1999 proposed maximum levy, including EDA and HRA levies, to Sherburne County By September 15, 1998. He noted that specific budget issues will be discussed at a later date. COMMISSIONER DWYER MOVED TO APPROVE RESOLUTION 98-5 ESTABLISHING THE TAX LEVY FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION 6-0. e