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REQUEST FOR CITY PARTICIPATION (TAX INCREMENT FINANCING): <br />COMPANION DOG TRAINING & SUPPLIES, A.K.A.K.J.S. ASSOCIATES; <br /> CASE OF KRIS FLUEGEL AND SARAH SAWYER <br /> By: Mark S. Banwart, Community Development Director <br /> <br />Background: <br /> <br />At the April 12, 1988 City Council meeting, Kris Fluegel and Sar~ Sawyer requested City participation in ta.x. <br />increment financing. At that time, staff reported that the proposed development would consist o£ a block building <br />which would improve the quality of construction in the area and would generate more tax increment. The value of <br />such a building would be $250,000. Based on fi'~at, the amount of increment ma..' would be available for the <br />developers would be 836,000. The total amount of the increment that would be generated would be between S60,000 <br />an~ $70,000 over a period of 20 yeo2's. S,2.[f h~fi also indicated to thc developers fha: ~.here would not be an extension <br />of utilities into the property. It was also stated that the development district has a floating base. It would be <br />difficul! to determine how much incremen! would be generated. Furthermore, it was stated that all engineer and <br />administrative costs would come out of the 536,000. It was stated by the developers that the)' had been working <br />with Human Economic Development Group 0-IEDG) and they had complied a business plan and furthermore had met <br />with bankers and had financing contingent upon mx increment financing. Motion was made, seconded and approved <br />for Cit.',' participation in this proposed prQect. <br /> <br />Observations: <br /> <br />On May 4, 1988, a letter was sent to Kris Fluegel stating that the City Council had given preliminary approval for <br />tax increment funds to finance a minimum of 550,000 in site improvements for the project. Based on receiving this <br />letter, the developers arranged their financing. <br /> <br />On January 20th and 30th, 1989, City staff met with Kris Fluegel and Sarah Sawyer and discussed other possible <br />finance districting formats and alternatives to remedy the problems caused by the l~¢y 4, 1988 letter. Based on an <br />updated spreadsheet of TIF Calculations For An Economic Development District. there is an estimated total <br />increment over 10 years of 581,51zi. Current policy states: With utilities at '70% or 557,060 or Without utilities at <br />g0% of increment or 532,616. It should be noted that the above referred to policy is intended to be a general one and <br />based on discussions with the Attorney, Ronald H. Batty, who drafted the original policy format, was intended to be <br />flexible. For ),our information, the following items are offered: <br /> <br />B. <br />C. <br />D. <br /> <br />$50,000 minimum Site Improvement Letter (dated May ~, 1988) <br />TIF Calculations For An Economic Development Dish-ici (January 1989) <br />Memorandum RE: Companion Dog Training & Supply (dated January 27, 1989) <br />Rarnsey TIF PoLicies <br /> <br />Recommendations: <br /> <br />Staff recommends 70% of this estimated increment over a period of 10 years to be generat~ on this project be used <br />towarc[~ the project. <br /> <br />Council Action: <br /> <br />Motion to approve/deny funding of Tax Increment Financing for an Economic Development District for Companion <br />Dog Training & Supply, a.k.a.K.J.S. Associates to the maximum of" FifLv-seven thousand dollars (557,000)". <br /> <br />Review Checklist: <br /> <br />City Administrator ~ Chief of Police <br />City Attorney '~. 7 Finance Offi~r <br />C/tv Engineer Economic Development r, ~:~. ~ <br />Community Development Director 'k..~_' Other <br /> <br /> <br />