8.4. SR 06-20-1994 - Laserfiche WebLink

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rll ~'\) ( )j fl~ ITEM 8.4. MEMORANDUM TO: MAYOR & CITY COUNCIL DATE: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATOJ.J Vl- JUNE 16, 1994 FROM: SUBJECT: TIF REIMBURSEMENT REQUEST FROM THE CHUBA COMPANY (MAIN ST AND FREEPORT AVE PROJECT) INTRODUCTION Mr. Dennis Chuba of The Chuba Company requests a Tax Increment Financing (TIF) reimbursement for eligible expenses incurred at the Main Street and Freeport Avenue office/townhouse project. The amount of the request is $25,838.18. e BACKGROUND In August, 1993, the Elk River City Council approved an amendment to Tax Increment Financing Plans No. 1 and No.3. Although The Chuba Company requested $60,000 in TIF assistance for this project, the City Council approved a $50,000 amendment to Plans No.1 and No.3. The amendment enabled The Chuba Company to receive up to $50,000 for certain redevelopment costs such as demolition, foundation removal, soil boring and analysis, compaction, site preparation, etc., associated with the above- referenced project. The Elk River Housing and Redevelopment Authority (HRA) subsequently agreed to fund up to 50 percent of the demolition and site preparation costs - up to a maximum contribution of $25,000. On February 17, 1994, the City Council approved an initial TIF reimbursement payment to The Chuba Company in the amount of $24,161.82. The latest request brings the City/HRA grant contribution up to the maximum of $50,000. The writer of this memo is in receipt of invoices exceeding $25,838.18 for various eligible expenditures associated with this redevelopment project. In fact, the total reimbursement sought is closer to the original request of $60,000 than the approved $50,000 amendment. To support the e reimbursement request, The Chuba Company has provided the writer with P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425