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(P.0 <br /> ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY <br /> 0 October 3, 1996 HRA Report 96-2 <br /> REQUEST CITY COUNCIL TO CALL PUBLIC HEARING ON TIF <br /> DISTRICT NO 16 <br /> Proposed Action <br /> Staff recommends adoption of the following motion: Move to request the City <br /> Council to call a public hearing on January 27, 1997, for the establishment of <br /> Tax Increment District No 16 (King and Main Project) <br /> With approval of this action, staff will initiate a schedule which will outline <br /> the necessary notification requirements and other actions as required by law <br /> for the establishment of this TIF District and to prepare for the public <br /> hearing on January 27, 1997. <br /> Overview <br /> In June, 1996, the HRA closed on its purchase of three separate properties at <br /> • the corner of King and Main in downtown Elk River. Total cost of the subject <br /> properties was $425,667.74. <br /> The HRA is in receipt of a letter from the Chuba Companies indicating their <br /> intent to purchase the site for $225,000 and construct a building with <br /> minimum finished market value of$800,000. <br /> The timing of purchase and demolition of the properties all related directly to <br /> an effort to reduce the base value for tax increment purposes to zero dollars. <br /> This was achieved by purchasing the properties prior to July 1, 1996, <br /> demolishing the properties after January 1, 1997, and certifying the TIF <br /> District and closing on the sale of the property to the developer after July 1, <br /> 1997. <br /> Supporting Documents <br /> • Sch ule establishment of Tax Increment District No 16 <br /> Paul T. Steinman, Director of Economic Development <br /> • eda\hra\phtifl6.doc <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />