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ITEM #7 <br /> ¶1k' <br /> y of MEMORANDUM <br /> River Authority <br /> Economic Development <br /> 0/FROM: Cathy Mehelich, Director of <br /> Economic Development <br /> DATE: July 10, 2000 <br /> SUBJECT: Proposal for Development of EDA Site <br /> At Joplin Street <br /> Issue <br /> The issue before the EDA at this time is to review the proposal for <br /> development of the EDA site located at Joplin Street from Gary Santwire, <br /> Rivers Crossing, Inc. <br /> Background <br /> • The 4.36 acre site was purchased by the City from Country Ridge, Inc. (Tony <br /> Emmerich) in December 1997. The source of funding was the use of excess <br /> TIF funds from TIF District No. 5 in the amount of$198,750 ($1 per square <br /> foot plus fees). Upon the City's closing of the transaction the property was <br /> transferred to the Economic Development Authority. <br /> The limitations on the expenditure of excess TIF funds from District No. 5 <br /> carried with it the necessity to spend the excess TIF funds prior to the end of <br /> the year, due to the planned decertification of District No. 5 at the end of <br /> 1997. Since the source of funding was excess TIF, any sale proceeds would be <br /> considered increment income and would need to be returned to the County for <br /> distribution. The EDA has the opportunity to sell the property for $1 should <br /> a qualified development proposal be received.. The current fair market value <br /> of the property is estimated at $1.15 per square foot (190,000 SF) for a total <br /> of approximately $218,500. <br /> Development Proposal <br /> Attached is a copy of the development proposal from Gary Santwire and his <br /> clients: Russ & Linda Norha (Equity Management, Inc.) and David & Carole <br /> Ripplinger (Track of the Wolf Inc.). <br /> • <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612)441-7420 • Fax: (612)441-7425 <br />