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Item #6 <br /> ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Cathy Mehelich, Director of <br /> Economic Development <br /> DATE: September 6, 2000 <br /> SUBJECT: Santwire (Norha & Ripplinger) Project Update <br /> Background <br /> The total subsidy assistance to project was to be provided as follows: <br /> * Subdivide the property into two lots $ 16,000 estimate <br /> (park ded surface water mngt, engineering fees) <br /> * Land sale write down at a 100% less <br /> than market value (est. by County) $330,800 <br /> • * Split the cost of water/sewer installation $ 5,000 estimate <br /> Total value of assistance requested $351,800 <br /> Ripplinger $175,900 - 50% <br /> Norha $175,900 - 50% <br /> The following items have occurred since the EDA's approval of providing <br /> subsidy assistance for the project: <br /> • City Council approved providing subsidy assistance as <br /> recommended by the EDA (August 14, 2000). <br /> • Santwire offered to expand Ripplinger building by 7,300 sq. ft. <br /> in exchange for the EDA to absorb all of the cost of the utility <br /> extension estimated at $10,000. <br /> • City Council considered and approved amendment to the <br /> subsidy assistance to provide up to $178,400 each as a result <br /> of the proposed expansion; 22,500 sq ft each. <br /> • Discussion with John Cullen, Sherburne County Assessor <br /> results in adjustment of total property market value from <br /> $330,800 to $237,000. <br /> • Total subdivision expenses adjusted to include $8,600 park <br /> • dedication fee and estimated $2,500 in engineering/platting. <br /> • Final subsidy assistance established at $129,050 each per <br /> above adjustments. <br /> 13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420• Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />