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TAX INCREMENT FINANCING PLAN <br />• TAX INCREMENT FINANCING DISTRICT NO. 13 <br />SUMMARY <br />TL Feeding Systems, Inc., 8720 Wyoming Avenue North, Brooklyn Park, MN seeks <br />$175,000 in Tax Increment Financing assistance to support its proposed construction of a <br />15,000 square foot office and production facility on a three (3) acre lot in Country <br />Crossing Business Center (Business Park). TL Feeding Systems designs and <br />manufactures vibratory and centrifugal feeding equipment and systems that orient <br />various products for assembly and packaging. The company currently occupies leased <br />space and it desires a more permanent office and production facility to ensure continued <br />growth. <br />The Economic Development Authority for the City of Elk River, Minnesota is proposing <br />the creation of an Economic Development District pursuant to the Tax Increment <br />Financing Act. Tax increment funds will be used to "write down" the acquisition price <br />of the development site. Additional tax increment funds will be used for site preparation <br />and site development costs. The expansion site is currently an unplatted parcel owned by <br />DMV Mall Corporation. The Economic Development Authority for the City of Elk River <br />proposes to reimburse TL Feeding Systems for its expense associated with the acquisition <br />of the three acre Business Park site under apay-as-you-go Tax Increment Financing <br />District. <br />The 15,000 square foot facility will have a finished market value estimated at $675,000 <br />which produces "property taxes of approximately $30,700 per year. These funds will be <br />"captured" by the Economic Development Authority so that the City of Elk River can <br />recover the $175,000 in tax increment assistance. After these funds have been repaid, <br />Tax Increment Financing District No. 13 will be decertified, thereby enabling all local <br />taxing jurisdictions (county, school, city, etc.) to share in the project's property taxes. <br />The Economic Development Authority for the City of Elk River, Minnesota anticipates <br />that Tax Increment Financing District No. 13 will exist for approximately eight (8) years; <br />during which times tax increment funds will be collected for six (6) years. <br />. s:\eda\document\tifnol3.doc <br />