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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> • MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: William Rubin, Executive Directo I <br /> DATE: July 10, 1995 <br /> SUBJECT: Agenda Memo for July 10, 1995 <br /> EDA Meeting <br /> 6. July Financial Update <br /> Please refer to the financial summary prepared by Assistant City Administrator, <br /> Lori Johnson. <br /> • Action Requested <br /> The July financial update is an informational item and no action is requested. <br /> 8. "Qualifying Local Contribution"Illowrey/Neos, Inc TIF Project <br /> At its June 19 meeting, the Elk River City Council approved a tax increment <br /> financing request from Mr. Jack Mowrey/Neos, Inc. to support the proposed <br /> construction of a 12,000 square foot manufacturing facility in the McChesney <br /> Industrial Park. In accordance with the TIF policy guidelines, the maximum TIE <br /> grant cannot exceed 15 percent of a project's finished market value. Therefore, <br /> the TIF grant will likely range from$56,250 (based on a finished market value of <br /> $375,000)to$67,500 (based on a finished market value of$450,000). <br /> In approving the 1,1k grant, the City Council also agreed to explore the <br /> opportunity to opt out of the Local Government Aid - Homestead and Agricultural <br /> Aids (LGA/HACA) reduction by making a "qualifying local contribution" in an <br /> amount equal to a percentage of the tax increment. For an economic development <br /> TIF district, the contribution is 10 percent. <br /> • <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 />