3.0. EDSR 10-12-1998 - Laserfiche WebLink

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,--Q --'\ MEMORANDUM liry of ,, lk TO: Economic Development Authority FROM: Paul T. Steinman, Director of Economic Development DATE: October 12, 1998 SUBJECT: Worksession Agenda Memo Hohlen/Vandenberg Property Mixed Use Development Issue The purpose of this worksession is to discuss, in concept, tax increment issues relating to the Hohlen/Vandenberg mixed use commercial/industrial development project. Overview • Tax Increment Financing District No. 19 has been established to include approximately 68 acres of Earl Hohlen property and 40 acres of Vandenberg property lying west of and adjacent to the newly proposed Tyler Street - east of 169. TIF District 19 also includes all of the public rights of way adjacent to these two properties including portions of County Road 12, the intersection of Main Street/Highway 169, and Highway 169. TIF District No. 19 is a redevelopment tax increment district, allowing for the collection of increment for a maximum term of 25 years. The EDA has the ability to use the increment generated in the following manner: • provide increment to the developer to pay for qualified and eligible activities - land, site improvements, public improvements, wetland remediation • provide increment to the city for various qualified and eligible tax increment activities - public improvements • up to 10 percent of the increment generated can be used to pay administrative costs. There is a penalty, defined as a "local contribution," imposed upon cities for the creation of tax increment districts. The penalty for TIF District No. 19 is IDequal to 5 percent of the tax increment expended from the District. This 5 13065 Orono Parkway • P.O. Box 490 • Elk River,MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425