6. HRSR 04-04-2011 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Housin & Redevelo ment Authori 6 - AGENDA SECTION MEETING DATE PREPARED BY Apri14, 2011 Catherine Mehelich, Director of Economic Develo ment ITEM DESCRIPTION REVIEWED By Consider TIF 16 Fund Request -Elk River Pizza Ranch REVIEWED BY ACTION REQUESTED Consider TIF 16 Fund Request from Applicant Robert McDonald, Elk River Pizza Ranch. If approved, a Development Agreement will be formalized between the developer and HRA to describe the project and specify the assistance to be provided and conditions, including job and wage goals. If the amount and structure of the assistance meets statutory business subsidy thresholds, the City Council may be required to approve the agreement. BACKGROUND/DISCUSSION In June 2010 the HRA and City Council amended the HRA's TIF District No. 16 (King & Main) and adopted a Spending Plan, under new legislation that allowed the temporary utilization of existing TIF revenues in order to stimulate construction or substantial rehabilitation of private development and stimulate job creation. The attached Spending Plan adopted by the City Council identifies the statutory requirements as well as the City's criteria for use of the funds. Proposed Project Investment and Funding Request The Spending Plan authorizes the HRA to consider funding requests to assist the new construction or substantial rehabilitation for the following desired uses: 1) outpatient medical clinics; 2) Class I restaurants; 3) green manufacturing or other renewable energy facilities, and 4) general light industrial or manufacturing. Staff recently received a request for funds from Elk River Pizza Ranch which is proposing acquisition and rehabilitation of the former Movie Gallery building located 19141 Freeport St. NW, Elk River. The proposed project is considered a Class I restaurant in which food is served to the customer at a table. Total estimated investment in the proposed project is $1,590,850. Proposed construction costs are estimated at $559,150. The applicant has requested HRA funds in the amount of $90,000 to be provided as a grant to pay for $72,000 WAC/SAC and purchase of adjacent land necessary for parking. Proposed Tob Creation The Spending Plan requires the assistance is subject to the "Business Subsidy Law" and that the recipient create or retain at least 1 full-time equivalent job (including construction jobs) for every $25,000 of assistance provided. The applicant is proposing to create 4 full time jobs ($25,000-$70,000 salary) in addition to approximately 70 part-time jobs at wages $7-$11 /hr. C:\Usexs\cmehelich\Desktop\4.4.11 HRA TIF16 Action Requested.doc