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ek/ --\, <br /> \,4 - <br /> ITEM 6.6. <br /> Tj <br /> y of � MEMORANDUM <br /> 1kRiverTO: PlanningCommission <br /> FROM: Pat Klaers, City Adminis <br /> / <br /> DATE: March 26, 1996 <br /> SUBJECT: Review of TIF Plan for <br /> TIF District No. 14 <br /> On Monday, April 8, 1996, the Elk River City Council will hold a public <br /> hearing to consider a Tax Increment Financing (TIF) Plan for TIF District <br /> No. 14. Pursuant to Minnesota Statutes, the Planning Commission is <br /> required to review and comment on the proposed TIF Plan prior to the City <br /> Council conducting a public hearing. This is done to ensure that the land use <br /> of the project is consistent with the city's Comprehensive Plan. <br /> The Elk River Economic Development Authority (EDA) is proposing the <br /> creation of TIF District No. 14. The District will be comprised of two parcels, <br /> • Lots 6 & 7, Block 1, McChesney Industrial Park. This is the same location as <br /> the proposal for Neos, Inc., which was outlined in TIF District No. 12. The <br /> Neos project did not become reality and a new project for Marketech, Inc., is <br /> now being proposed on this site. <br /> Marketech, Inc., currently leases spaces in two different facilities and is <br /> looking to construct its own building. The company seeks approximately <br /> $65,100 in TIF assistance to support the construction of an approximately <br /> 9,300 square foot facility on Lots 6 & 7. Tax increment funds will be used to <br /> write down the acquisition price of the lots. With this expansion, it is <br /> estimated that 13 new employees will be added over the next three years. <br /> Marketech currently has 22 employees. <br /> To support the request for assistance, the EDA proposes to create an <br /> economic development TIF District. New property taxes generated by the <br /> 9,300 square foot facility will be captured by the city/EDA in order to pay <br /> back the $65,100 TIF Grant. It is estimated that the Marketech TIF District <br /> would last approximately seven years. New property taxes, or the increment, <br /> will be collected for five years. <br /> • <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />