5.3. SR 11-20-1995t 1� River
FROM:
DATE:
* *ITEM 5.3. **
MEMORANDUM
Mayor & City Council
William Rubin, ED CoordinatryL,
November 20, 1995
SUBJECT: Proposed Modification to Tax
Increment Financing Plan No. 2
Introduction
On November 20, the Elk River City Council will be asked to schedule a
public hearing to consider a modification to Tax Increment Financing Plan
No. 2.
Back - 'round
• Tax Increment Financing District No. 2 relates to a housing district that was
established by the City of Elk River in July of 1985. A TIF grant was used to
underwrite various infrastructure costs (utilities, curb and gutter, sidewalk,
etc.) associated with the cost of developing a thirty -six unit apartment project
on the campus of Guardian Angels of Elk River, Inc. This TIF District was
scheduled for decertification by December 31, 1996. However, because of
sufficient funds in this account, city staff (that is, city administrator,
assistant city administrator, and economic development coordinator) believe
that it is appropriate to decertify this District one year early, or by December
31, 1995.
With this deadline looming on the horizon, it is equally important to initiate
a modification to the TIF Plan so as to allow for the expenditure of funds for
purposes authorized pursuant to Minnesota Statutes. Failure to adopt a
plan amendment prior to the decertification of TIF District No. 2 will
significantly limit how TIF funds attributable to this District can be accessed.
It is estimated that approximately $80,000 exists in the District No. 2
account. A modification to the TIF Plan for District No. 2 will expand the
eligible uses for which TIF funds can be expended. Potential uses include:
various infrastructure initiatives, urban renewal initiatives, Mississippi
• Riverfront Pathway initiatives, and business and industrial initiatives.
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425
• As with previous modifications to TIF Plans, the County Commissioners,
School Board, and Planning Commission all have an opportunity to review
and comment on the proposed amendment.
Action Requested
The City Council is asked to schedule a public hearing for December 21,
1995, to consider a modification to TIF Plan No. 2. Prior to this modification,
a list of eligible expenditures will be developed for which funds from District
No. 2 will be expended.
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