Laserfiche WebLink
<br />e <br /> <br />$165,000 TIF assistance <br />$ 6,000 Cost of issuance <br />$ 2,720 Miscellaneous <br />$ 28,280 Capitalized Interest ( two years) <br />$202,000 <br /> <br />This bond issue, at a taxable rate of, say, 7% can be repaid over twelve years with level <br />payments of $25,432. The project's estimated taxes are $27,970 - therefore, TIF <br />repayment of the project debt is feasible. The life of the district is extended an additional <br />three years in order to recover the $70,000 land write down costs. <br /> <br />A similar TIF note at say 6.5% and only eighteen months of capitalized interest can be <br />repaid in an even shorter period. <br /> <br />State law allows citiesIEDA's/HRA's to collect tax increments from redevelopment <br />projects for up to twenty-five years. The Kjellberg project easily falls within the state <br />statutory parameters. <br /> <br />ACTION REQUESTED <br /> <br />e <br /> <br />The Elk River City Council is asked to approve the TIF Plan for TIF Distirct No. 12. The <br />creation of District No. 12 is subject to the execution of a Contract for Private <br />Development by and between the Elk River EDA and Kurt Kjellberg/Kjellberg's Carpet <br />and Interiors. <br /> <br />e <br />