4.1. SR 12-21-1998ity of
Item 4.1.
·
lver
MEMORANDUM
TO:
Mayor & City Council
/FROM:
Paul Steinman, Director of Economic
Development
DATE:
December 21, 1998
SUBJECT:
Consider Resolution 98- Approving
Budget Modification - Tax Increment
District No. 9 (Tescom)
Issue
A public hearing has been advertised and scheduled to be held at
approximately 6 p.m., Monday, December 21, 1998, to provide an opportunity
for the public to comment on a proposed budget modification to Tax
Increment Financing District No. 9. This issue is before the City Council at
this time for the purpose of allowing such a public hearing and considering a
resolution approving such budget modification.
Background
The proposed modification will increase tax increment expenditures from TIF
District No. 9 by a maximum of $90,000. This amount is detailed as follows:
· Land Purchase $24,000
· Administration 6,000
· Pubhc Improvements 60,000
Total $90,000
Land Purchase - The city will be using tax increment dollars to
reimburse itself for additional costs associated with the land purchase
for this project which was completed in the fall of 1993. At that time
the project costs did not include a piece of land which was later
purchased by the EDA for the project.
Administration - The city has the authority to utilize tax increment
dollars to pay a portion of its administrative costs regarding this TIF
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
District. The proposed budget modification identifies that the city will
use $6,000 of tax increment for this purpose.
Public Improvements - Staff has proposed two public improvement
projects in the Elk River Industrial Park utilizing tax increment
dollars from TIF District No. 9. These projects include the
construction of a sidewalk on the interior side of Industrial Boulevard
and the modification/rehabilitation of the Elk River Industrial Park
entrance sign. Staff is estimating the cost of construction of the
sidewalk will be approximately $35-$45,000. There is no estimate for
improvements to the Industrial Park signage at this time.
Attachments
Resolution 98 -
· TIF No. 9 Budget Modification
· TIF No. 9 Public Hearing Notice - Published December 9, 1998
· Notification letters to county and school district regarding TIF No. 9
budget modification
Recommendation
Staff recommends approval of the attached Resolution 98- regarding a
budget modification to the Tax Increment Plan for Tax Increment Financing
District No. 9.
RESOLUTION 98 - __
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
A RESOLUTION MODIFYING THE BUDGET IN THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 9
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 in the Tax
Increment Financing Plan ("Plan Modification") for Tax Increment Financing
District No. 9, and adopt the related Plan 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 Plan Modification showing an adoption date of December 21, 1998,
and presented for the Council's consideration.
1.02. The Council has investigated the facts relating to the Plan
Modification.
1.03. The City has performed all actions required by law to be performed
prior to the adoption and approval of the proposed Plan Modification, including, but
not limited to, notification of Sherburne County and School District No. 728 having
taxing jurisdiction over the property located within District No. 9, a review of and
action taken on the Plan Modification by the City Planning Commission, and the
holding of a public hearing upon published notice as required by law.
1.04. Certain written reports (the "Reports") relating to the Plan
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 Plan 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 Plan Modification.
2.01. The Council hereby finds that the Plan 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 and to accomplish certain objectives
as specified in the Development Program for Development District No. 1 and the
original Tax Increment Financing Plan for Tax Increment Financing District No. 9,
which are hereby incorporated herein.
Section 3. - Findings for the Modification of Tax Increment Financing District
No. 5.
3.01. The Council hereby ratifies, in their entirety, the original findings
established at the time of approval of the Tax Increment Financing Plan for Tax
Increment Financing District No. 9, made on March 8, 1993, and appearing in the
City of Elk River Resolution No. 93-09, and determines that the Plan Modification is
consistent therewith.
Section 4. - Approval and Adoption of the Plan Modification.
4.01. The Plan 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 staff of the City, the City's advisors and legal counsel are
authorized and directed to proceed with the implementation of the Plan Modification
and to negotiate, draft, prepare, and present to this Council for its consideration all
further Plans, 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 21, 1998
Henry A. Duitsman, Mayor
ATTEST:
Sandra Peine, City Clerk
TAX INCREMENT FINANCING PLAN
BUDGET MODIFICATION
FOR
TAX INCREMENT FINANCING DISTRICT NO. 9
City of Elk River, Minnesota
December 21, 1998
TAX INCREMENT FINANCING PLAN
BUDGET MODIFICATION TO
TAX INCREMENT FINANCING DISTRICT NO. 9
This will be a modification to Section E (1) Tax Increment Financing District
No. 9 cost estimates - budget.
This budget modification to Tax Increment Financing District No. 9 will
provide for additional expenditures in the maximum amount of $90,000 as
follows:
· Land purchase $24,000
· Administration 6,000
· Public improvements 60,000
Total: $90,000
This budget modification is being undertaken for the primary purpose of
constructing a sidewalk in the Elk River Industrial Park and to complete
improvements to the Industrial Park entrance signage.
IMPACT ON TAX RATES
CURRENT PERCENT ENTITY'S POTENTIAL IMPACT ON
ENTITY TAX RATE OF TOTAL TOTAL NET TC TAXES ON TAX RATE
Sherburne County .27253 .24 58,246,430 $21,600 (.00037)
City of Elk River .26255 .24 12,383,123 $21,600 (.00174)
School District No. 728 .56539 .51 26,390,619 $45,900 (.001 74)
Other .01475 .01 12r383,123 $ 900 (.00007)
TOTAL 1.11504 1.00 $90,000 (.00392)
The estimates listed above display impact on tax rates upon expenditure of tax increment to a
maximum amount of $90,000. The tax rates are the payable 1998 figures for all jurisdictions.
sh rdoc~eda\tif~budmod9.doc
TAX IHCREMEHT DISTRICT HO. 9
ELK RIVER IHDUSTRIAL PARK
NOTICE OF PUBLIC HEARING
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
Notice is hereby given that the City Council of the City of Elk River, County of Sherburne, State of
Minnesota, will hold a public hearing on Monday, December 21., 1998, at approximately 6:00 p.m. in the Elk
River City Council Chambers at the Elk River City Hall, Elk River, Minnesota, relating to the proposed
Budget Modification to Tax Increment Financing Plan for Tax Increment Financing District No. 9 (an
Economic Development Tax Increment Financing District), and the adoption of such Budget Modification
relating thereto, pursuant to Minnesota Statutes, Section 469.090 through 469.1081 and Sections 469.174
through 469.179, all inclusive, as amended. Copies of the Budget Modification are on file and available for
public inspection at the office of the City Administrator, Elk River City Hall, 13065 Orono Parkway, Elk
River, Minnesota.
This public hearing is required to be held prior to any Budget Modification in Tax Increment Financing
District No. 9 in the City of Elk River. Tax Increment District No. 9 was established in 1993 for the purpose
of providing a financing mechanism for a Tescom Corporation expansion project in the Elk River Industrial
Park. A map of Tax Increment Financing District No. 9 is set forth below.
TAX INCREMENT DISTRICT NO. 9
ELK RIVER INDUSTRIAL PARK
4tUl
All interested persons may appear at the hearing and present their views orally or prior to the meeting in
writing.
BY ORDER OF THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA, Patrick
D. Klaers, City Administrator
ty of
November 9, 1998
Superintendent of Schools and
School Board Members
Independent School District No. 728
327 King Avenue
Elk River, Minnesota 55330
Attn: Dr. David Flannery, Superintendent of Schools
SUBJECT:
City of Elk River's Proposed Modification to the Tax Increment
Financing Plan Budget for Tax Increment Financing District
No. 9
The City of Elk River will be considering the modification of the Tax
Increment Financing Plan budget for Tax Increment Financing District No'. 9
(an economic development district) at a public hearing to be held at City
Hall, City of Elk River, on Monday, December 21, 1998, at approximately 6
p.m.
Enclosed please find one draft copy of the proposed modification to the Tax
Increment Financing Plan budget for Tax Increment Financing District No.
9. The proposed modification is to provide a source of funds to construct
public improvements in the Elk River Industrial Park. The boundary map of
District No. 9 can be seen as found in the enclosed information.
The Minnesota Tax Increment Financing Act at Minnesota Statutes, Section
469.175, Subdivision 2 and 4, requires that prior to the holding of a public
hearing on the modification of a Tax Increment Financing Plan, the city must
provide an opportunity to the members of the affected School Board and
County Board to review the fiscal and economic implications of the proposed
modified Plan 30 days fxom the transmittal of the enclosed modification to
the Tax Increment Financing Plan or until the School Board or County Board
has presented written comment on the proposal, whichever is less.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
:y of
ver
November 9, 1998
Chair Terry Nagorski and
Sherburne County Board Members
Sherburne County Board of Commissioners
13880 Highway 10
Elk River, Minnesota 55330
Atto: Dave Loch, Sherburne County Administrator
SUBJECT:
City of Elk River's Proposed Modification to the Tax Increment
Financing Plan Budget for Tax Increment Financing District
No. 9
The City of Elk River will be considering the modification of the Tax
Increment Financing Plan budget for Tax Increment Financing District NO. 9
(an economic development district) at a public hearing to be held at City
Hall, City of Elk River, on Monday, December 21, 1998, at approximately 6
p.m.
Enclosed please find one draft copy of the proposed modification to the Tax
Increment Financing Plan budget for Tax Increment Financing District No.
9. The proposed modification is to provide a source of funds to construct
pubhc improvements in the Elk River Industrial Park. The boundary map of
District No. 9 can be seen as found in the enclosed information.
The Minnesota Tax InCrement Financing Act at Minnesota Statutes, Section
469.175, Subdivision 2 and 4, requires that prior to the holding of a pubhc
hearing on the modification of a Tax Increment Financing Plan, the city must
provide an opportunity to the members of the affected School Board and
County Board to review the fiscal and economic imphcations of the proposed
modified Plan 30 days from the transmittal of the enclosed modification to
the Tax Increment Financing Plan or until the School Board or County Board
has presented written comment on the proposal, whichever is less.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425