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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> • MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: William Rubin, Executive Direct ri <br /> __ <br /> DATE: August 8, 1995 <br /> SUBJECT: Agenda Memo for August 8, 1995 <br /> EDA Meeting <br /> INTRODUCTION <br /> 6. August Financial Update <br /> This item should be deleted from the EDA Agenda due to the EDA's meeting one <br /> week earlier this month. Assistant City Administrator Lori Johnson will prepare <br /> the financial summary and submit it to EDA Commissioners wider separate cover <br /> sometime next week. <br /> 1111 8. Tax Increment Financing Request from TL Feeding Systems <br /> This item has been outlined in greater detail in a separate memo in the agenda <br /> packet. <br /> 9. "Qualifying Local Contribution"Rowry/Neos. Inc. TIF Project <br /> This is a carryover item from the EDA's July 10, 1995 meeting. At that meeting, <br /> one option EDA Commissioners discussed regarding the ongoing fimding of this <br /> annual contribution to the Neos TIF District was to retain the lion's share of the <br /> proceeds from the cash sale of an industrial site to District 728. <br /> In addition, EDA Commissioner suggested that another alternative was to include <br /> the qualifying local contribution as part of a respective year's budget. No decision <br /> was made at the July meeting as it was unclear whether or not a budgeted item <br /> could meet the State's test of those fiords then being `unrestricted". hi a <br /> subsequent conversation with City Attorney Peter Beck, the writer of this memo <br /> has been advised that an annual budgeted expenditure equal to a Tif Project's <br /> qualifying local contribution could indeed be considered unrestricted funds. The <br /> downside, of course, is that the EDA will be using a portion of its funds as a <br /> qualifying contribution rather than for other economic development initiatives. <br /> • With one TIF district this may not be a problem. However, as more new TIF <br /> districts are created, more and more budget funds will have to be committed to the <br /> local contribution. <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />