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M.=+, — i - c, MO N 1 4 :: . P .. 0 <br />FA Northwest Associated Consultants, Inc. <br />CU R B A N P L A N N I N G • D E S I G N • M A R K E T R E S E A R C H <br />MEMORANDUM <br />TO: Joel Hanson <br />FROM: Dan Wilson <br />DATE: 7 May 1990 <br />RE: Little Canada - Howe /Debace TIF Request <br />FILE N0: 758.09 - 90.29 <br />Per your request, I have reviewed the preliminary data on the <br />Howe /Debace project. As you are aware, the legislature made <br />substantial changes to the TIF Act effective 5 -1 -90. The full <br />impact of the changes are still being sifted out. My initial <br />reaction is that the Howe /Debace project will be very difficult <br />to assist with the TIF under the revised act. <br />PROJECT DESCRIPTION: <br />A 9,000 square foot office warehouse four bay building has been <br />proposed for South Owasso Boulevard and Country Drive. The <br />construction cost is estimated at $291,860 and land cost at <br />$90,000, for a total project cost of $381,860. <br />The developer is seeking assistance with $20,000 of soil <br />correction costs. <br />The proposed project would be an economic development tax <br />increment project. These are the projects that the legislature <br />singled out to make their most severe restrictions. <br />Basically, the revised law provides for a 30-33% reduction in <br />local government aids computed on projects in economic <br />development districts. These are dollars out of the general <br />fund, not tax increment dollars. <br />The proposed project would generate $17,118 in annual tax <br />increments. The City would receive the entire $17,118. The <br />adjustment comes to the local government aid check which would be <br />reduced by ($17,118 x .33) $5,649. If this were an eight year <br />project, that amounts to $45,192 loss in local government aids. <br />Page 6 <br />4601 Excelsior Blvd. •Suite 410 •Minneapolis, MN 55416.(612) 925 -9420 • Fax 925 -2721 <br />