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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> TO: ECONOMIC DEVELOPMENT AUTHORITY <br /> FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATOj <br /> DATE: NOVEMBER 8, 1993 �II <br /> SUBJECT: AGENDA MEMO FOR NOVEMBER 15, 1993, SPECIAL EDA <br /> MEETING <br /> 2 . Public Hearing on KjellbergTIF Plan (TIF District No. <br /> 12) <br /> At its October EDA meeting, Commissioners authorized the <br /> preparation of a Tax Increment Financing Plan for the <br /> Kjellberg redevelopment project in the 600 block of Main <br /> Street. An EDA public hearing on this matter was <br /> scheduled for November 15, 1993 . <br /> The request for tax increment financing assistance comes <br /> from Kurt Kjellberg/Kjellberg's Carpet and Interiors, <br /> 16862 Highway 10, Elk River, Minnesota. The developer <br /> seeks $165,000 in tax increment financing assistance to <br /> support its proposed construction of a 12,000 square foot <br /> • retail facility. The developer proposes to occupy <br /> approximately 6,000 square feet on the main floor, and, <br /> the remaining 6,000 square feet will be leased space. The <br /> $165, 000 in TIF assistance will be used for site <br /> preparation costs associated with the redevelopment site. <br /> As with past TIF requests, the developer is basing the <br /> request on estimates only; it is incumbent upon the <br /> developer to furnish the EDA with paid receipts to <br /> subcontractors performing the site preparation work. <br /> Actual payment of the TIF subsidy is based on those <br /> receipts and is subject to a "not to exceed" basis . <br /> TIF District No. 12 will be a "redevelopment TIF <br /> District". TIF District No. 12 would exist for a period <br /> of twelve to thirteen years, during which time tax <br /> increment funds will be collected by the EDA/City for ten <br /> to eleven years. <br /> To support this request for TIF assistance, the EDA will <br /> likely privately place a tax increment note through a <br /> lending institution. The note will fund the site <br /> preparation costs along with capitalized interest, cost of <br /> issuance fees, etc. , which are outlined in greater detail <br /> in the TIF Plan budget. The privately placed note would <br /> total approximately $195,000, and, would be recovered with <br /> interest over the ten to eleven year period during which <br /> • time the EDA/City collects the new property taxes from the <br /> retail project. The TIF collection is scheduled to begin <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 />