Laserfiche WebLink
ITEM # 5. <br />fiver <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Catherine Mehelich, Director of Economic <br />DATE: April 9, 2007 <br />Developmen /~ <br />SUBJECT: Consider Resolution Approving the Decertification of Tax <br />Increment Financing District No. 15 (McChesney) in the City of <br />Elk River <br />Attachments <br />TIF Plan -TIF District No. 15 Summary <br />EDA Resolution Approving the Decertification of TIF District No. 15 (McChesney) <br />Background <br />In 1996 the EDA and City created TIF District No. 15 in order to provide financing <br />assistance for the construction of McChesney Cabinet's 10,000 square foot industrial facility. <br />Located in the McChesney Industrial Park along Meadowvale Road, McChesney Cabinets is <br />a manufacturer and installer of custom cabinets, countertops and specialty wood items. The <br />attached TIF Plan Summary provides additional background about the project. <br />Issue <br />The duration of TIF District 15 was limited to 8 years after the receipt of the first tax <br />increment (July 1998). Since the obligations of the TIF District to the developer and its <br />useful life toward financially supporting other TIF Districts has reached its term, it is <br />necessary to decertify the TIF District at this time. As a result of the decertification, all local <br />property taxes generated by the property (currently in the amount of $10,200) will be <br />distributed to the school, county and city in the same manner as all other property taxes. <br />Requested Action <br />In accordance with statutory requirements, the EDA is asked to consider the attached <br />Resolution Approving the Decertification of TIF District No. 15. <br />