10-12-1998 EDA MIN - Laserfiche WebLink

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e e e WORKSESSION MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 12, 1998 Members Present: President Duitsman, Commissioners Thompson, Bender, Gongoll, Holmgren, Dwyer, and Farber (5:35 p.m.) Members Absent: None staff Present: Paul Steinman, Executive Director; Lori Johnson, Assistant City Administrator; Sandra Peine, City Clerk; Terry Maurer, City Engineer; Pat Klaers, City Administrator; Dave MacGillivray; Bond Consultant 1. Call Meetina To Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 5 p.m. by President Duitsman. 2. Consider Aaenda COMMISSIONER THOMPSON MOVED TO APPROVE THE 10/12/98 SPECIAL EDA AGENDA AS PRESENTED. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Discussion Reaardina Hohlen/Vandenbera Property Mixed Use Development Executive Director Paul Steinman indicated that this agenda item pertains to Tax Increment issues relating to the commercial/industrial development project. He stated thatTax Increment Financing District No. 19 includes approximately 68 acres of the Earl Hohlen property and 40 acres of the Vandenberg property lying west of and adjacent to the newly proposed Tyler Street. He explained that the TIF District is a redevelopment tax increment district allowing for the collection of increment for a maximum term of 25 years. Paul Steinman reviewed the ways in which the district could be used. He further explained the LGA/HACA penalty and the 5 percent local contribution penalty that will be imposed upon the city if and when TIF is generated and used to pay various project costs. Paul Steinman stated that the proposal from the developer is approximately $5.5 million. Tony Gleekel of Associated Developers updated the EDA on the progress that has been made to date regarding the commercial and industrial property. He indicated that the problems associated with closing the Hohlen mobile home park have been resolved. Discussion took place regarding the 25 year maximum term of the TIF District. It was indicated by the developers that the maximum term would not be necessary, however, at this point. the number of years could not be determined.