11-09-1998 EDA MIN - SPECIAL - Laserfiche WebLink

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e SPECIAL WORKSESSION MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 9, 1998 Members Present: President Duitsman, Commissioners Gongoll, Thompson, Dwyer, Bender, and Holmgren Members Absent: Commissioner Farber Staff Present: Paul Steinman, Executive Director; Pat Klaers, City Administrator; Sandra Peine, City Clerk; Peter Beck, City Attorney; Lori Johnson, Assistant City Administrator; Dave MacGillivray, Bond Consultant 1. Call Meetinq 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 Aqenda e COMMISSIONER BENDER MOVED TO APPROVE THE 11/9/98 ECONOMIC DEVELOPMENT AUTHORITY WORKSESSION AGENDA. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Tax Increment Financinq District No. 19 - Associated Developers Proiect Executive Director Paul Steinman indicated that discussion of this issue relates to the provision of tax increment financing to Associated Developers as part of their mixed use development proposal on the Earl Hohlen property located at 169 and Main Street. Paul Steinman reviewed the basic costs associated with the industrial component of the project. Discussion pursued as to who was responsible for payment of the components of the project and whether it would be paid up front or on a pay-as-you-go method. Following discussion of the issue it was the consensus of the EDA that the cost for mass grading and wetland remediation of approximately $600,000 be split on a pay-as-you-go and up front method so as to potentially eliminate city bonding for this cost. Paul Steinman reviewed the commercial components of the project. He noted that the approximate total tax increment for this project is $1.6 million. He further noted that the gas pipeline relocation costs of $350,000 would probably be reduced to about $100,000. After discussion by the EDA regarding the total dollar amount for the commercial component of the project, it was the consensus that the Executive Director negotiate with the developer a tax increment package of approximately $1 million including $627,000 for public improvements and $373,000 for other eligible TIF costs. e The issue of eminent domain for the two remaining parcels which are not in the control of the developer at this time was discussed. The developer indicated he would rather purchase the parcels up front rather than going through the