04-08-1996 CC MIN - SPECIAL - Laserfiche WebLink

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Special City Council Meeting April 8, 1996 5.3. 5.4. Page 2 COUNCILMEMBER DIETZ MOVED TO A~THORIZE THE SERVICES OF INSPEC, INC., IN THE LIBRARY REROOFING PROJECT AS OUTLINED IN THE PROPOSAL FROM INSPEC DATED MARCH 27, 1996. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. .Consider Termination of Tax Increment Financinq District No. 12 (Neos) City Administrator Pat Klaers requested the Council to terminate Tax increment Financing District No. 12. He informed the Council that the Neos project was not constructed and that this District was never certified to the County and no increments were collected. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 96-16, A RESOLUTION TERMINATING TAX INCREMENT FINANCING DISTRICT NO. 12. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Public Headnq on Tax Increment Financinq Plan for Tax Increment Financing District No. 14 (Marketech, Inc.) City Administrator Pat Klaers reviewed the request for Tax Increment Financing District No. 12 from Marketech, Inc. He explained that the request is from Rich Duggan, owner of Marketech. He further indicated that 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. Mr. Duggan presently operates out of two leased spaces and needs room for expansion. Pat Klaers indicated that the total 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 for the project. The City Administrator explained that Marketech would retain its existing 22 jobs and create 13 new jobs over the next three years. The City Administrator 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 aid penalty by making a qualifying 10 percent contribution to the District. Rich Duggan introduced himself as owner of Marketech and indicated that the company needs room for expansion and city financial help to do the project. Mayor Duitsman opened the public hearing. There being no one for or against the matter, Mayor Duitsman closed the public hearing. COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 96-17, A RESOLUTION FOR THE CITY OF ELK RIVER RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RrLATED THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.