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Elk REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Housing Redevelopment Authority INFORMATION <br /> Economic Development Authority <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> November 5, 2012 Annie Deckert, Director of Economic <br /> November 13, 2012 Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Finance & Commerce Articles re: Special TIF Legislation,TIF Cal Portner, City Administrator <br /> 16- Elk River Pizza Ranch REVIEWED BY <br /> ACTION REQUESTED <br /> None. <br /> BACKGROUND/DISCUSSION <br /> In May of 2011, the HRA and City Council approved a loan in the amount of$90,000 to Elk River Pizza <br /> Ranch at 2%interest for 10 years with a 5-year balloon per special TIF legislation enacted in 2010 which <br /> allowed communities to utilize TIF to stimulate job creation. The funding was used to cover the$72,000 <br /> SAC/WAC fees and to purchase adjacent land necessary for parking. <br /> The attached series of articles were published in Finance &Commerce,a daily print and online <br /> newspaper focused exclusively on business in Minnesota, covering real estate, construction,banking and <br /> finance. The Elk River Pizza Ranch Project is one of the projects highlighted in the series. <br /> Per the loan documents,The Pizza Ranch was required to create four full time jobs ($25,000-$70,000 <br /> salary),in addition to approximately 70 part-time jobs at wages $7-$11 an hour. These job goals have <br /> been achieved. <br /> Our Pizza Ranch case study doesn't appear to fit the nature of the article as there was a positive impact <br /> on property taxes as the building is now suited for higher level development than before the loan, the <br /> loan is anticipated to be paid back at a competitive interest rate and the job goals were achieved. <br /> FINANCIAL IMPACT <br /> None. <br /> ATTACHMENTS <br /> • "The Great Property Tax Free-for-all", Finance&Commerce, October 24,2012 <br /> Action Motion by Second by Vote <br /> Follow Up <br />