5.3. SR 03-08-2004 - Laserfiche WebLink

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River MEMORANDUM Item 5.3. TO: FROM: DATE: SUBJECT: Economic Development Authority Mayor & City Council Catherine Mehelich, Director of Economic Developmen~,~ '. ,,' March 8, 2004 Consider Concept Approval of the Gradient Technology, Inc. Expansion Siting Proposal Attachments · Correspondence from Mary Ippel, Briggs & Morgan P.A. regarding Tn= No. 19, March 2, 2004. · Staff Report to the EDA regarding Gradient Technology Proposal, February 9, 2004. Issue At its February 9, 2004 meeting the EDA postponed discussion of the Gradient Technology, Inc. Expansion Siting Proposal due to a request by the applicant. Since then staff has been working with the prospect Gradient Technology in completing the City Tax Rebate Financing Application. Representatives from Gradient Technology are prepared for the EDA and City Council to discuss the proposal at its March 8 meeting. Staff has become aware of some concern from Council and EDA.members about whether or not tax increment financing or tax abatement can be provided for prospects that locate in the Elk River Business Park due to its perceived association with the City's Tax Increment Financing District No. 19 redevelopment project (the shopping center). The attached correspondence from attorney Mary Ippe1 of Bdggs & Morgan provides the city a written opinion following her review of the Tn= No. 19 documents. Ms. Ippel states in her letter "the City is not precluded by the Contract from reimbursing a business locating in the Business Park Project for eligible costs of a manufacturing or warehousing and distribution facility in the Business Park". Over the past year staff has been working under the EDA's direction to work with private landowners for the cooperative marketing and development of their business park/light industrial land. These discussions with the landowners have included the owners of the Elk River Business Park.