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<br />ITEM 3 <br /> <br /> <br />TO: MAYOR AND CITY COUNCIL <br /> <br />FROM: WILLIAM RUBIN, ED COORDINATORJJ~ <br /> <br />DATE: MARCH 4, 1993 <br /> <br />SUBJECT: PUBLIC HEARING ON TAX INCREMENT <br />FINANCING PLAN FOR TAX INCREMENT <br />FINANCING DISTRICT NO. 9 (TESCOM <br />EXPANSION PROJECT) <br /> <br />INTRODUCTION <br /> <br />At its February 8 meeting, the Elk <br />authorized a public hearing for March 8, <br />Tax Increment Financing Plan for Tax <br />District No.9. <br /> <br />River City Council <br />1993, to consider the <br />Increment Financing <br /> <br />BACKGROUND <br /> <br />. <br /> <br />The City Council will recall that TIF District No. 9 was <br />approved in August, 1992. The District was comprised of one <br />parcel, Lot 8, Block 1, Elk River Industrial Park. Because of <br />uncertainties surrounding site preparation costs and wetland <br />issues involved with Lot 8, an alternative site for TIF <br />District No. 9 was explored. Since the August, 1992, TIF Plan <br />was never certified and since the land (Lot 8) was never sold, <br />the current TIF Plan has simply been renamed TIF Plan No.9. <br /> <br />The Elk River Economic Development Authority (EDA) is proposing <br />the creation of Tax Increment Financing District No. 9 which <br />will be comprised of three parcels, Lot 1, Lot 2, and Lot 3, <br />Block 2, Elk River Industrial Park 2nd Addition. <br /> <br />The request for Tax Increment assistance comes from Tescom <br />Corporation, Inc., 12616 Industrial Boulevard. The Company <br />seeks up to $194,000 in Tax Increment Financing assistance to <br />support its proposed ~xpansion of approximately 30,000 square <br />feet. This request assumes the purchase and/or value of all <br />three lots. Only two will be soldi therefore, the monetary <br />value is overstated. Tax Increment funds will be used to <br />"write-down" the cost of the land, and to pay for certain <br />survey, engineering, and soil boring and analysis costs. <br /> <br />. <br /> <br />The Elk River EDA is proposing the creation of an "Economic <br />Development TIF District." Staff estimates that the Tescom TIF <br />District would last from 1993 through 1999, inclusive. During <br />which time, the Elk River EDA/City would collect new property <br />taxes from 1995 through 1999, inclusive. These funds would be <br />used to repay the EDA for its costs associated with this <br />project. Once the EDA's out-of-pocket costs associated with <br />this project are repaid, the District is decertified. <br /> <br />720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 <br />