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<br /> <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 7.2 <br />Agenda Section Meeting Date Prepared by <br />Public Hearings June 5, 2023 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />Extension of Tax Increment Finance District No. 26 Cal Portner, City Administrator <br />(TIF 26) Job Creation Period <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, a resolution extending the compliance period of TIF 26 by one (1) year and authorizing <br />execution of an amendment to the TIF 26 agreement. <br /> <br />Background/Discussion <br />TIF 26 was created in 2020 to support Moyer Properties and Shoot Steel constructing a new industrial facility at <br />17565 Tyler Street. <br /> <br />Shoot Steel committed to relocating operations to Elk River and increasing its headcount to 13 full-time <br />employees within two years of the building being completed on June 3, 2021. <br /> <br />We have been notified by the company that economic conditions, and specifically the post-Covid spike in steel <br />prices, have impacted their ability to meet its growth and payroll goals. <br /> <br />The Business Subsidy Statute allows for a one-year extension of the job creation compliance period. We are <br />recommending the compliance period be extended to June 3, 2024, to allow the company additional time to <br />achieve its goals. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Support industrial development and job creation. <br /> <br />Attachments <br /> Resolution <br /> First Amendment to TIF 26 Agreement <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />