So what, exactly would happen to the City of St. Michael’s bottom line should the former Cinemagic Theater site become a, presumably, tax-exempt church such as Riverside?
That question has been on residents’ minds since June, when Riverside began pushing for the purchase of the former theater with a letter to the St. Michael City Council, submitted by its attorney.
Last year, the city collected just over $425 of United Bankers Bank’s more than $115,000 tax bill for 2013 (the theater was bank-owned last year).
This year, that falls to just $404, payable by Cinemasota, which purchased the building last spring. Or, should Riverside get its wish and complete the purchase of the property by the end of this year, it could go out the window.
But what about the rest of the $2.5 million property’s (valuation provided by Wright County) remaining tax bill?
Well, the Elk River School District (it lies within District 728 boundaries, according to its tax statement) would take an annual hit of around $5,000. In 2014, United Bankers paid more than $4,700 to the district for voter-approved levies, and another $865 for “other local levies.”
The state would lose more than $30,000 annually, if Riverside filed to make the property exempt, as well.
But the biggest loss would be to a TIF district established to help improve the theater site when it was constructed more than seven years ago. That district is due a $78,600 payment next year, after getting more than $79,000 from the bank last year.