3.2. SR 12-14-1998,ty of
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TO:
/~-F~ROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Paul Steinman, Director of Economic
Development
December 14, 1998
Consider Resolution 98- Approving
Administrative Budget Modification -
Tax Increment District No. 18
Consider Resolution 98- Approving Administrative Budget
Modification - Tax Increment District No. 18
Issue
The issue for the City Council to consider at this time is a resolution
approving an administrative budget modification to the Tax Increment
Financing Plan for Tax Increment District No. 18. A public hearing and
county/school district notification process is not required for this budget
modification due to the fact that the total maximum tax increment
expenditures are not proposed to change. This budget modification simply
redistributes the costs within the previously adopted budget.
Background
TIF District No. 18 was established to aid in the development of the Morrell
Companies project. The project is currently moving forward, thereby making
it appropriate to adopt a more specific budget for this District.
The current budget is as follows:
· Land acquisition
· Site improvements
· Pubhc improvements (includes local contribution)
· Interest
· Administration (up to 10 percent)
Total
$0
300,000
355,000
25,000
68,000
$748,000
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
The proposed budget modification is as follows:
· Land acquisition $0
· Site improvements 0
· Pubhc improvements (includes local contribution) 550,000
· Interest 130,000
· Administration 68,000
Total
$748,000
The purpose for this administrative budget modification is simply to
rea]locate costs within the current budget. The cost of public improvements
increased substantially due to a new estimation of the cost of completing the
controlled railroad crossing on 171st Avenue. The cost of this railroad
crossing construction is now estimated at approximately $450 - $550,000.
Attachments
· Resolution 98-
· TIF No. 18 Budget Modification
Recommendation
Staff recommends approval of Resolution 98- regarding an administrative
budget modification to the Tax Increment Plan for Tax Increment District
No. 18.
RESOLUTION 98 -
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
A RESOLUTION MODIFYING THE BUDGET FOR
TAX INCREMENT FINANCING DISTRICT NO. 18
BE IT RESOLVED by the City Council ( the "Council") of the City of Elk River,
Minnesota (the "City") as follows:
Section 1. - Recitals.
1.01. It has been proposed that the Council modify the Budget ("Budget
Modification") for Tax Increment Financing District No. 18, and adopt the related
Budget Modification therefor, pursuant to and in conformity with applicable law,
including Minnesota Statutes, Sections 469.090 through 469.1081 and 469.174
through 469.179, all inclusive, as amended, all as reflected in the Budget
Modification showing an adoption date of December 14, 1998, and presented for the
Council's consideration.
1.02. The Council has investigated the facts relating to the Budget
Modification.
1.03. The Council has determined that an administrative Budget
Modification is appropriate and that a public hearing and notification of Sherburne
County and School District No. 728 are not required.
1.04. The City has performed all actions required by law to be performed
prior to the adoption and approval of the proposed Budget Modification.
1.05. Certain written reports (the "Reports") relating to the Budget
Modification and to the activities contemplated therein have heretofore been
prepared by staff and submitted to the Council and/or made a part of the City files
and proceedings on the Budget Modification. The Reports include data, information,
and/or substantiation constituting or relating to the basis for findings and
determinations made in this Resolution. The Council hereby confirms, ratifies, and
adopts the Reports which are hereby incorporated into and made as fully a part of
this Resolution to the same extent as if set forth in full herein.
Section 2. - Findings for the Adoption and Approval of the Budget
Modification.
2.01. The Council hereby finds that the Budget Modification is intended,
and in the judgment of this Council, the effect of such actions will be, to provide an
impetus for development for the public purpose an.d to accomplish certain objectives
as specified in the Development Program for Development District No. 1 and the
original Tax Increment Financing Budget for Tax I. ncrement Financing District No.
18, which are hereby incorporated herein.
Section 3. - Findings for the Modification of Tax Increment Financing District
No. 18.
3.01. The Council hereby ratifies, in their entirety, the original findings
established at the time of approval of the Tax Increment Financing Budget for Tax
Increment Financing District No. 18, made on April 6, 1998, and appearing in the
City of Elk River Resolution No. 98-31, and determines that the Budget Modification
is consistent therewith.
Section 4. - Approval and Adoption of the Budget Modification.
4.01. The Budget Modification, as presented to the Council on this date,
including without limitation the findings and statements of objectives contained
therein, are hereby approved, ratified, established, and adopted, and shall be placed
on file in the office of the Executive Director of the Economic Development
Authority.
4.02 The staffofthe City, the City's advisors and legal counsel are
authorized and directed to proceed with the implementation of the Budget
Modification and to negotiate, draft, prepare, and present to this Council for its
consideration all further Budgets, Resolutions, Documents, and Contracts necessary
for this purpose.
The motion for the adoption of the foregoing resolution was introduced by
Councilmember and duly seconded by Councilmember
, and upon a vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
Dated: December 14, 1998
Henry A. Duitsman, Mayor
ATTEST:
Sandra Peine, City Clerk
TAX INCREMENT FINANCING PLAN
BUDGET MODIFICATION
FOR
TAX INCREMENT FINANCING DISTRICT NO. 18
City of Elk River, Minnesota
December 14, 1998
TAX INCREMENT FINANCING PLAN
BUDGET MODIFICATION TO
TAX INCREMENT FINANCING DISTRICT NO. 18
This will be a modification to Section G - Estimate of Public Costs - Use of
Funds
This budget modification to Tax Increment Financing District No. 18 will
provide for a redistribution of costs in the following manner, but will not
change the maximum dollar amount of tax increment to be spent from this
District:
· Land acquisition $ 0
· Site improvements 0
· Public improvements (includes local contribution) 550,000
· Interest 130,000
· Administration (up to 10 percent) 68:000
Total: $748,000
AVENUE
3TH AVE:.
LEGEND
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TIF 18
SITE LOCATION MAP
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