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AGENDA ITEM NO.8 <br /> ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: ECONOMIC DEVELOPMENT <br /> AUTHORITY <br /> FROM: WILLIAM RUBIN, EXECUTI 0,,,... <br /> DIRECTOR <br /> DATE: DECEMBER 12, 1994 <br /> SUBJECT: PROPOSAL TO CONVEY INDUSTRIAL <br /> SITE TO TESCOM CORPORATION <br /> Introduction <br /> Several months ago, the Economic Development Authority authorized its <br /> Executive Director to provide a variety of options to Tescom Corporation, <br /> 12616 Industrial Boulevard, regarding its acquisition of Lot 1, Block 2, Elk <br /> • River Industrial Park 2nd Addition for future expansion. A map identifying <br /> the location of Lot 1 is attached to this memo. <br /> Background <br /> Several land purchase scenarios were presented to Tescom, including: <br /> • Outright purchase via a Purchase Agreement <br /> • The right to purchase via an Option Agreement <br /> • Right of First Refusal <br /> • Open ended - No stated Sunset Provision <br /> Another option offered for consideration is that of simply conveying Lot 1 to <br /> Tescom by Quit Claim Deed for future expansion. In doing so, the EDA's <br /> value in the lot would be recovered through Tescom's future property taxes <br /> that are converted into "tax increment payments" by virtue of the <br /> development that has occurred in TIF District No. 9 and Tescom's future <br /> expansion. A map of TIF District No. 9 is also attached to this memo. The <br /> map identifies the geographic limits of TIF District No. 9 and these limits <br /> include Lot 1. TIF Plan No. 9 provides that District No. 9 could extend as <br /> late as the year 1999. As a result, TIF Plan No. 9 gives the City/EDA the <br /> • flexibility to quit claim Lot 1 to Tescom. <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 />