3.11. SR 10-21-1996 - Laserfiche WebLink

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**ITEM 3.11.** r~ity of iver FROM: DATE: SUBJECT: MEMORANDUM Mayor & City Council Paul T. Steinman, Director of Economic Development October 21, 1996 TIF District No. 16 - King and Main Introduction At its meeting on Monday, October 14, 1996, the HRA approved a motion requesting the City Council to call for a public hearing to be held on January 27, 1997, to establish Tax Increment Financing District No. 16. Attached for your information is a schedule for the establishment of TIF District No. 16. Background As you are aware, the HRA purchased the King and Main properties in June, 1996. The HRA has received a Letter of Intent to redevelop this site from The Chuba Companies. Dennis Chuba intends to redevelop the site into an office type building and has offered the HRA $225,000 for purchase of the property after the site has been cleared. Mr. Chuba indicated in his Letter of Intent that the finished market value of the project will be between $800 and $1 million. The HRA intends to utilize tax increment dollars to recoup the costs involved with purchase and demolition of buildings on the site. The total cost of purchase of the property was approximately $425,000. After closing with the developer next July, 1997, and receiving payment of $225,000, the HRA will have invested in this site approximately $200,000 plus demolition costs. It is expected the HRA will recoup these costs through tax increment dollars generated from the increased market value of the properties. Action Requested Staff recommends that the City Council call for a public hearing to be held at 6 p.m. on January 27, 1997, to establish Tax Increment Financing District No. 16 in the City of Elk River. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425