09-21-1998 EDA MIN - SPECIAL - Laserfiche WebLink

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Elk River Economic Development Authority Minutes Sentember 21. 1998 Page 2 e 6. 7. Consider Resolution Reauestina the City Council to Call a Public Hearina for Establishment of Tax Increment Financina District No. 21 Consider Recommendation that City Council Authorize Use of the Development Fund as a Source of Fundina for West Business Park Proiect Consider Execution of Purchase Aareement with Tony Emmerich for West Business Park Proiect 8. Executive Director Paul Steinman stated that agenda items 6-8 relate to the West Business Park project. These items initiate the process of a tax increment district, recommending that the Council authorize a source of funds for the project and execute a purchase agreement with Tony Emmerich for a six acre parcel. Paul Steinman indicated that the developer has not fully committed to the West Business Park project at this time. He requested the Economic Development Authority to move ahead with approval of the necessary actions to start the process as a show of good faith to the developer that the EDA is willing to make commitments to the project. President Duitsman indicated that he does not feel comfortable voting on these issues without a formal application to review. Commissioner Gongoll concurred with the President. He suggested that the EDA inform the developer that it is actively interested, however, it needs assurances that the project will move ahead. e Executive Director Paul Steinman stated that by approving items 6-8 the EDA would be making no commitment to the project, but only giving an indication that the city will be moving ahead as the developer moves ahead. After discussion it was the consensus of the EDA to call a public hearing for the establishment of a tax increment financing district so as not to delay the timetable if the developer should decide to move ahead with the project. It was also the consensus of the EDA to indicate its support of the $100,000 micro loan request without adopting a motion doing so at this time and further that if the developer does not move forward by September 29, the resolution calling for the public hearing be rescinded. COMMISSIONER BENDER MOVED TO ADOPT RESOLUTION 98-2 REQUESTING THE CITY COUNCIL TO CALL A PUBLIC HEARING ON THE MODIFICATION OF DEVELOPMENT DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 21 AND FURTHER TO SHOW EDA SUPPORT OF THE $100,000 MICRO LOAN FUND AND, IF THE EDA HAS NOT RECEIVED AN APPLICATION FROM THE DEVELOPER BY SEPTEMBER 29, THE ISSUES BE REMOVED FROM THE TABLE AND THE RESOLUTION RESCINDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 9. Receive Update/Information on Tax Increment Reauest from Associated Developers (Hohlen Property Redevelopment) e Executive Director Paul Steinman informed the EDA that the city has received a formal tax increment financing request for the Hohlen property redevelopment including the commercial and business park components. Paul suggested that the EDA hold a worksession to discuss the tax increment financing proposal.