5.2. & 5.4. EDSR 08-14-2000 - Laserfiche WebLink

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ELK RIVER ECONONIPMENT AUTHORITY Item # 5.2 & 5.4 ill TO: Elk River EDA FROM: Cathy Mehelich, Director of Economic Development DATE: August 10, 2000 SUBJECT: Equity Management, Inc. Project Issue Per state law, the EDA is to consider public input on the following items as it relates to the Ripplinger development proposal: 1) Sale/disposal of EDA public property North Half of Lot 1, Block 1, Country Crossing Business Center 2nd Addition. 2) Granting Subsidy Assistance in an amount exceeding $100,000 to be provided in the form of a land sale write down Background Equity Management, Inc. (Linda Norha) has proposed to construct a 22,500 square foot multi-tenant light industrial building on half of a site currently • owned by the EDA (located at Joplin Street& 183rd Ave). Equity Management has requested that the EDA provide the following assistance in order to encourage the development project to occur: • Subdivide the property into two lots $ 8,000 • Transfer the north half of the property $165,400 to Equity Management, Inc. at a 100% write down of market value • Split the cost of water/sewer installation $ 2,500 Total value of assistance requested $175,900 Current market value of the 4.36 acres is $330,800. The City of Elk River purchased the property in December 1997 with excess tax increment finance revenues in the amount of$198,750. The property was then transferred to the EDA for sale and marketing. Limitations exist on the EDA sale of the property since the purchase was last funded by tax increment finance dollars. Any sale proceeds would be considered increment and would need to be returned to the County for distribution. The source of funds for subdivision expenses and water/sewer • installation would come from the EDA reserve fund. 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 Equal Equal Opportunity Housing and Equal Opportunity Employment