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<br />rei -'\) <br />( ); <br />tIi~ <br /> <br />ITEM 7.4. <br /> <br /> <br />TO: <br /> <br />River <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL <br />WILLIAM RUBIN, ED COORDINATOfJ~ <br />JULY 13, 1993 <br /> <br />DATE: <br /> <br />SUBJECT: PROPOSED AMENDMENT TO TIF PLANS <br />NO. 1 AND NO. 3 <br /> <br />INTRODUCTION <br /> <br />On July 19, 1993, the Elk River City Council will be asked to <br />schedule a public hearing to consider a modification to Tax <br />Increment Financing (TIF) Plans No. 1 and No.3. <br /> <br />BACKGROUND <br /> <br />. <br /> <br />At its July 12 meeting, the Elk River EDA Commissioners <br />reviewed a proposal from Mr. Dennis Chuba, The Chuba Company, <br />regarding his redevelopment proposal at East Main Street <br />between Evans and Freeport Avenues. This proposal is a <br />continuation of the phased redevelopment project that was <br />initiated by Mr. Chuba at Evans Avenue and Main Street in <br />1992. With that project, the Elk River City Council authorized <br />the use of TIF funds to reimburse the developer for eligible <br />redevelopment costs as authorized by Minnesota Statutes. TIF <br />assistance is again being requested for the 1993 redevelopment <br />project. <br /> <br />As City Councilmembers will recall, TIF funds from Districts <br />No. 1 and No. 3 were authorized by the City to reimburse Mr. <br />Chuba for his costs associated with demolition and site <br />preparation expenses in 1992. The TIF funds were used as a <br />grant in lieu of creating a new TIF District, and thereby <br />enabling the EDA-City the ability to "recapture" its investment <br />into the project. TIF assistance for the 1993 redevelopment <br />project is estimated at $60,000. Again, the City Council would <br />access these funds from TIF Districts No. 1 and No.3. <br /> <br />Mr. Chuba is proposing the construction of an initial 10,000 <br />square foot townhouse-condo office building. The project would <br />be constructed in two phases containing 5,000 square feet <br />respectively. By way of comparison, the 1992 project contained <br />6,400 square feet and had a finished market value of $440,000. <br />Presumably, TIF funds for the 1993 project would be used to pay <br />for certain redevelopment costs such as the removal of existing <br />wells, trees, foundations, buildings, and soil corrections, <br />etc. All of these expenses are authorized by Minnesota <br />Statutes. <br /> <br />. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />