5. HRSR 12-03-2012 Crty of
Elk REQUEST FOR ACTION
River
TO ITEM NUMBER
Housing Redevelopment Authority 5.
AGENDA SECTION ` MEETING DATE PREPARED BY
General Business December 3, 2012 Tim Simon, Finance Director
ITEM DESCRIPTION REVIEWED By
Decertification of Tax Increment Financing District No. 16 Annie Deckert,Director of Economic
Development
REVIEWED BY
ACTION REQUESTED
Consider resolution approving the decertification of tax increment financing (TIF) District No. 16.
BACKGROUND/DISCUSSION
In 1997, the HRA and city created TIF District No. 16 in order to provide a financing mechanism to
redevelop the properties at King Ave &Main Street in downtown Elk River.
The maximum duration of TIF District 16 is 25 years after the receipt of the first tax increment in 1999.
Since the obligations of the TIF District will be fulfilled with the receipt of the 2nd half of the 2012 tax
increment in December,it is necessary to decertify the TIF District.
The parcels in the district had an original taxable market value of$175,000 and today the current taxable
market value is $2,258,500.
FINANCIAL IMPACT
As a result of the decertification, all local property taxes generated by the properties in 2013 and
thereafter will be distributed to the school, county and city in the same manner as all other property taxes.
ATTACHMENTS
• Resolution Decertifying Tax Increment Financing District No. 16
Action Motion by Second by Vote
Follow Up
I P O I E R E I H Y
C:\Users\dhuebner\AppData\Local\Microsoft\Windows\Temporary Internet NATURE
Files\Content.Outlook\X3O71NQV\Action Requested-Decertify TIF 16.docx
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF ELK RIVER,MINNESOTA
SHERBURNE COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 12-02
RESOLUTION DECERTIFYING
TAX INCREMENT FINANCING DISTRICT NO. 16
BE IT RESOLVED By the Board of Commissioners ("Board") of the Housing and
Redevelopment Authority of the City of Elk River,Minnesota ("Authority") as follows:
Section 1. Recitals.
1.01. On January 27, 1997, the Authority established Tax Increment Financing District No. 16
(a Redevelopment District) (the "TIF District") and adopted a tax increment financing plan therefor
(the "TIF Plan"), all pursuant to Minnesota Statutes Sections 469.174 to 469.1799 (the "TIF Act"),
Sections 469.001 to 469.047 (the "HRA Act"). The TIF District is a redevelopment district, and is
administered and controlled by the Authority.
1.02. While the maximum duration of the TIF District is 25 years after receipt of the first
increment, Section 469.1763, subd. 4(b) of the TIF Act requires that the TIF District must be
decertified when outstanding "in district obligations" (i.e., those issued within five years after
certification of the district)have been paid (with certain exceptions not relevant here).
1.03. Upon receipt of tax increments from the 2nd half of 2012, the Authority will have paid
or have received sufficient funds to pay all"in district obligations"or spending permitted under the TIF
Act,so the Authority has determined that is necessary and appropriate to decertify the TIF District.
Section 2. TIF District Decertified;Filing.
2.01.The TIF District is hereby deemed decertified as of December 31,2012.
2.02. Staff is authorized and directed to transmit a copy of this resolution to Sherburne County,
and to return to the County (for distribution to the City, County,and school district) any tax increments
from the TIF District received by the Authority which remain after paying all remaining obligations and
expenditures authorized under the TIF Act, including but not limited to administrative expenses
incurred in connection with administering the TIF District and the obligations thereof.
412181v1 JSB EL185-12
Approved by the Board of Commissioners of the Housing and Redevelopment Authority of
the City of Elk River,Minnesota this 3rd day of December,2012.
Chair
Attest:
Executive Director
412181v1 JSB EL185-12 2