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CASE #5: <br />DISCUSS ESTABLISHING DEVELOPMENT AND TAX INCREMENT <br />FINANCING DISTRICTS IN THE VICINITY OF ARMSTRONG BOULEVARD <br />NW AND HIGHWAY #10 NW AND REQUEST FOR CITY PARTICIPATION <br />By: Anne Norris, Community Development Director <br />Pete Raatikka, City Engineer <br />Background: <br />At its July meeting the Economic Development Commission reviewed a proposal by <br />Ms. Kris Fluegel and Ms. Sarah Sawyer for a proposed 7,500 square foot building <br />to be constructed north of the railroad tracks, east of Armstrong Boulevard NW. <br />The building will be used by Ms. Fluegel and Ms. Sawyer for a dog training <br />operation, a pet grooming business, and a pet grooming supplies store. Ms. <br />Fluegel and Ms. Sawyer are requesting that the City participate in this project <br />with tax increment proceeds for certain site improvements for their project. <br />The Economic Development Commission reviewed this request and discussed the <br />development that is occurring in the vicinity of Armstrong Boulevard NW and <br />Highway f10 NW. The Commission recommended that the City establish a <br />development district in this area to include Ms. Fluegel and Ms. Sawyer's <br />proposed project, the Ramsey HY-10 1st, 2nd, and 3rd Additions, and the <br />commercial portion of Alpaca Estates. In addition, the Commission recommended <br />that a tax increment financing district be established which includes those <br />parcels where we anticipate development in the next 12 months based on recent <br />site plan reviews and building permit applications. <br />Enclosed is a map showing the location of Ms. Fluegel and Ms. Sawyer's project <br />for your information. <br />Observations: <br />City Staff discussed this project with Mr. Ron Batty, Bond Counsel. Staff <br />determined that an economic development district is the only type of tax <br />increment financing district that could be established in this area. As you <br />know, this district is active for a very brief time (8-10 years). Because of <br />this, it is important to review each project within such a district on its own <br />merits. <br />In addition, this area is located outside of the urban area. In the past it <br />has been the City's policy to encourage commercial development in the urban <br />area. <br />Recommendation: <br />Council action will be based on your discussion. <br />Review Checklist: <br />Administrator X <br />Attorney <br />Engineer <br />Community Development Director 7 <br />Economic Development Commission X <br />Chief of Police <br />Finance Officer <br />Public Works Superintendent <br />Bond Counsel <br />OPM <br />