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<br /> <br />Item 5.1. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Catherine Mehelich, Director of Economic Developmen~ <br /> <br />DATE: July II, 2005 <br /> <br />SUBJECT: Downtown Building Expansion Proposal - The Bank of Elk River <br /> <br />Attachments <br />. Staff Correspondence to Pat Dwyer, The Bank of Elk River dated April 11 , 2005 <br />. City of Elk River Tax Rebate Financing Policy <br />. Memo from Director of Planning re: Downtown Parking Requirements <br /> <br />Background <br />Earlier this year staff was notified by representatives of The Bank of Elk River about <br />preliminary discussions to expand the Bank's corporate offices to accommodate an <br />additional 20,000-square feet for current and future growth of the company. The Bank has <br />been evaluating the pros and cons of either expanding its corporate office facility located <br />downtown, or to relocate its corporate offices to its commercial location in Otsego. <br /> <br />Issue <br />Expanding the downtown Elk River location presents some challenges to the Bank both <br />financially and functionally. The Bank's contractor has estimated up to $1.5 million in extra <br />costs to expand the downtown site as compared to constructing on vacant land. <br />Functionally, maintaining adequate parking and drive thru access is a challenge due to the <br />shape and size of the lot. <br /> <br />An expansion to the downtown facility presents an opportunity for additional revitalization <br />in the downtown through private investment and expands the downtown employment and <br />customer base which will support small businesses in the central business district. <br /> <br />In response to the Bank's financial challenge, staff provided the Bank with the attached <br />correspondence offering a recommendation for the City's consideration of Tax Rebate <br />Financing for the proposed expansion project. The Director of Planning has prepared an <br />analysis of the parking issue. <br /> <br />The Bank representatives have requested a discussion with the City Council regarding some <br />options to address the Bank's two primary challenges through: <br />. The City's preliminary consideration of Tax Rebate Financing assistance <br />. The City's flexibility on parking requirements <br /> <br />S:\EDA \TAXABATE\Bank of Elk River\7.11.0S Council. doc <br />