3.3. SR 09-22-1997ITEM
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MEMORANDUM
iver
FROM:
DATE:
SUBJECT:
Mayor & City Council
Paul T. Steinman, Director of Economic
Development
September 10, 1997
Call Public Hearing for Modification of
TIF District No. 5
Issue
The EDA unanimously supported a motion to ask the City Council to call a
public hearing for December 1, 1997, 6 p.m., at City Hall on proposed
modifications to Tax Increment Financing District No. 5. The purpose of this
issue before the City Council this evening is to approve the attached
resolution which authorizes staff to prepare modifications to TIF District No.
5 and establishes December 1, 1997, 6 p.m., as the public hearing date and
time.
Background
At the end of December 1997, TIF District No. 5 (Alltool) is scheduled to
decertify. At that time it is estimated there will be approximately $225,000
in excess tax increment in that district. The EDA has asked the Council to
call the public hearing to modify the budget in TIF District No. 5 to allow
these excess increments to be used for industrial/business park land
acquisition. The proposed modification would also include the use of $66,200
of these funds to reimburse the EDA for its purchase of a lot in the Elk River
Industrial Park which was completed in June of 1997.
It is imperative that these excess funds be either spent or committed by
December 31, 1997. If this cannot be accomplished, the excess funds will be
required to be returned to the county for redistribution to the various taxing
jurisdictions.
TIF District No. 5 is a City Council tax increment district, therefore, control
of modification of this budget lies in the hands of the City Council. Staff feels
it is appropriate for the Economic Development Authority to make
recommendations on the budget modification and use of these funds to the
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
City Council. At its last meeting, the EDA directed staff to begin discussions
with West Business Park property owners for the possible purchase of
property with these excess TIF funds. Staff is currently pursuing these
discussions at this time.
Recommendation
Staff recommends adoption of Resolution 97- calling for a public hearing
to be held on the proposed modification of TIF District No. 5 on Monday,
December 1, 1997, at approximately 6 p.m., at City Hall, and also to
authorize the Economic Development Authority to provide direction to the
Council and staff on the use of these excess TIF funds.
\\elkriver\sys\shrdoc\council\tif5mod.doc
RESOLUTION 97 -
A RESOLUTION CALLING FOR A PUBLIC HEARING BY
THE CITY OF ELK RIVER ON THE MODIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 5
BE IT RESOLVED by the City Council (the "Council") for the City of Elk
River, Minnesota (the "City") as follows:
Section 1. Public Hearing This Council shall meet on Monday,
December 1, 1997, at approximately 6 p.m., to hold a public hearing on
the proposed modification of Tax Increment Financing District No. 5,
(an economic development Tax Increment Financing District), all
pursuant to and in accordance with Minnesota Statutes, Sections
469.090 through 469.1081, inclusive, as amended, and Minnesota
Statutes, Section 469.174 through 469.179 inclusive, as amended, in
an effort to encourage the development and redevelopment of certain
designated areas within the City; and
Section 2. Notice of Public Hearing, Preparation of Plan. Staff is
authorized and directed to prepare the modification to the Tax
Increment Financing Plan (the "Plan") and to forward documents to
the appropriate taxing jurisdictions including Sherburne County and
Independent School District No. 728. The City Administrator is
authorized and directed to cause notice of the hearing, together with
an appropriate map as required by law, to be published at least once in
the official newspaper of the City not later than ten nor more than
thirty days prior to December 1, 1997, and to place a copy of the Plan
on file in the City Administrator's office at City Hall and to make such
copy available for inspection by the public.
Passed and adopted by the City Council of the City of Elk River on the 22nd
day of September, 1997.
Henry A. Duitsman, Mayor
ATTEST:
Patrick D. Klaers, City Administrator