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Item ~ 4.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />City Council Members <br /> <br />Marc Nevinski, Acting Director of <br />Economic Development <br /> <br />May 22, 2000 <br /> <br />Public Hearing & Consideration of <br />Approval for the use of TRF by <br />R&W Enterprises. <br /> <br />18sue <br />The Economic Development Authority recommended at its <br />May 8, 2000 meeting the R&W Enterprises receive Tax Rebate <br />Financing for the construction of a multi-tenant industrial building <br />in the McChesney Industrial Park. Staff requests that the council <br />hold a public hearing on the matter and consider granting final <br />approval of the TRF request. <br /> <br />Background <br />Recently, John Weicht and Mark Rothfork formed R&W Enterprises <br />in order to construct a multi-tenant industrial building on the last lot <br />in the McChesney Industrial Park. The building will be designed to <br />house approximately three to four light industrial companies, who <br />hopefully will grow and expand in Elk River. Additionally, the site <br />plan, which has been approved by the planning commission, <br />combines the parking area with the existing parking at Mark <br />Rothfork's building (see attached site plan in the application), which <br />subsequently increases the size of the building on the site. <br /> <br />The total cost of the project is projected to be approximately <br />$758,000. Sources of financing include a $630,000 loan from The <br />Bank of Elk River and a $128,000 equity contribution by R&W <br />Enterprises. <br /> <br />Mr. Weicht is requesting that the city rebate its portion of the taxes <br />on the building for a period of four years. Staff has estimated this <br />amount to be $6,159 per year or $24,683 over the term of the rebate <br />period. Mr. Weicht also intends to request that Sherburne County <br />rebate its portion of the taxes on the project for the same four year <br /> <br /> <br />