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ELK RIVER ECONOIVINMENbt9PMENT AUTHORITY <br /> TO: Economic Development Authority <br /> FROM: Paul T. Steinman,Director of Economic <br /> Development <br /> DATE: November 9, 1998 <br /> SUBJECT: Worksession Agenda Memo <br /> Tax Increment Financing District No. 19 -Associated Developers <br /> Project <br /> Issue <br /> The purpose of this worksession is to discuss,issues relating to the provision <br /> of tax increment financing to Associated Developers as part of their mixed <br /> use development proposal on the Earl Hohlen property located at 169 and <br /> Main Street. Staff hopes to have the EDA arrive at some general consensus <br /> regarding the amount of tax increment proposed and the method of providing <br /> such tax increment. <br /> After this EDA worksession, staff hopes it will be able to begin constructing <br /> the two primary development agreements for this project for the EDA to <br /> consider at their regular meeting on December 14, 1998. <br /> Background <br /> For ease of discussion at this worksession, staff proposes to break the issue <br /> down into two components: <br /> • industrial component <br /> • commercial component <br /> Industrial Component - At this time it is difficult to estimate the actual <br /> expenses involved in portions of the industrial project. For the purpose of <br /> this discussion, staff proposes that we use the figure of$2.5 million in total <br /> costs associated with the industrial piece. This amount breaks out as follows: <br /> • land purchase $ 700,000 <br /> • mass grading and wetland remediation $ 600,000 <br /> 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420• Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />