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3.4. SR 10-15-2007REQUEST FOR ACTION To Item Number Ci CouncIl 3.4.* Agenda Section Meeting Date Prepared by Consent October 15, 2007 Tim Simon, Finance Director Item Description Reviewed by Concur and Approve Decertification of Tax Increment Lori ohnson, Finance Director Financing District #17 (Decker) and District #20 (SupexMats) Reviewed 6y Action Requested Concur with the Economic Development Authority (EDA) and approve decertification of Tax Increment Financing (TIF) District #17 (Decker) and TIF District #20 (SupexMats). Background/Discussion Tax Increment District #17 & #20 were economic development districts and the statutory maximum life fox this type of district is eight years after receipt of first increment. The obligations of the TIF districts to the developers and support of other districts has been completed, it is necessary to decertify the districts at this time. Financial Impact All taxes payable on the parcel of property will be distributed to the school, county and city in the same manner as all property taxes. The TIF taxes generated fox taxes payable 2007 is approximately $85,700. Attachments ^ Resolutions approving decertification of Tax Increment #17 (Decker) and District #20 (SupexMats) as approved by the EDA on October 8, 2007. Action Motion by Second by Vote Follow Up C\Uommevts and Scmngx\jnrillee\Local Settings\Temporuy Iotemet Files\OLK3T''\lleceaiEyllistria#17#2o.doc ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION 07-06 RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 17 WITHIN DEVELOPMENT DISTRICT NO. I IN THE CITY OF ELK RIVER WHEREAS, on February 17, 1998 the Elk River Economic Development Authority (the "Authority") created its Tax Increment Financing District No. 17., (the "District") within its Development District No. 1 (the "Project"); and WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the District had been pledged have been paid in full ox defeased and all other costs of the Project have been paid; and WHEREAS, the Tax Increment Financing plan adopted on February 17, 1998 for Tax Inclement Financing Distract No. 17 requires, pursuant to M.S. 469.176, Subd.1, that the duration of the Tax Increment Financing District 17 will be eight years after the date of receipt by the City of the first tax increment ox ten years from approval of the tax increment financing plan, whichever is less; and WHEREAS, the continuance of TIF District No. 17 serves no public ox private purpose; and WHEREAS, the Authority desires by this resolution to cause the decertification due to its payment of obligations of the District after which all property taxes generated by property within the Districts will be distributed in the same manner as all other property taxes beginning December 1, 2007, NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk River Economic Development Authority that the city's staff shall take such action as is necessary to cause the County Auditor of Sherburne County to decertify the District as a tax increment district and to no longer remit tax increment from the Distract to the Authority. DATED: October 8, 2007 A. ATTE~,T: Ca erme Mehelich, Executive Director ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION 07-07 RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 20 WITHIN DEVELOPMENT DISTRICT NO. I IN THE CITY OF ELK RIVER WHEREAS, on October 6, 1998 the Elk River Economic Development Authority (the "Authority") created its Tax Inclement Financing District No. 20., (the "District") within its Development District No. 1 (the "Project"); and WHEREAS, as of the date hereof all bonds and obligadons to which tax increment from the District had been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the Tax Inclement Financing plan adopted on October 6, 1998 for Tax Increment Financing District No. 20 requires, pursuant to M.S. 469.176, Subd.1, that the duration of the Tax Increment Financing District 20 will be eight years after the date of receipt by the City of the first tax increment or ten years from approval of the tax increment financing plan, whichever is less; and WHEREAS, the continuance of TIF Distract No. 20 selves no public or private purpose; and WHEREAS, the Authority desires by this resolution to cause the decertification due to its payment of obligations of the District after which all property taxes generated by property within the Districts will be distributed in the same manner as all other property taxes beginning December 1, 2007, NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk River Economic Development Authority that the city's staff shall take such action as is necessary to cause the County Auditor of Sherburne County to decertify the District as a tax increment district and to no longer remit tax increment from the District to the~iprthority. DATED: October 8, 2007 ATTEST: ~~~ ~~'// Catherine Mehelich, Executive Director