5.0 HRSR 03-03-08Item ~~ 5
giver
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: March 3, 2008
SUBJECT: Consider Resolution Approving the Decertification of TIF
District No. 10 in the City of Elk River
Attachments
• HRA Resolution Approving the Decertification of TIF District No. 10 (Elk Terrace)
Background
In 1992 the HRA and City created TIF District No. 10 in order to provide financing
assistance fox the construction of a 23-unit senior apartment housing project on a
redevelopment site at Holt Ave and 4`" Street in Elk River. The TIF funds were used to
assist the developer for infrastructure improvements, demolition of two single-family
residences, site preparation and related public improvements.
Issue
The duration of TIF District 10 was limited up to the year 2009 or until the bond obligations
were paid. Since the obligations and its useful life toward financially supporting other TIF
Districts has reached its term, it is necessary to decertify the TIF District at this time. As a
result of the decertification, all local property taxes generated by the property (an estimated
$8,000) will be distributed to the school, county and city in the same manner as all other
property taxes.
Requested Action
In accordance with statutory requirements, the HRA is asked to consider action on the
following attached resolution:
Resolution No. 08-01 Approving the Decertification of TIF District No. 10
S:\EDA\TIF\Tif10\Decert Memo 3.3.08.doc
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION 08-01
RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT
FINANCING DISTRICT NO. 10 WITHIN DEVELOPMENT
DISTRICT NO. 1 IN THE CITY OF ELK RIVER
WHEREAS, on August 25, 1992 the Elk River Housing and Redevelopment Authority
(the "Authority") created its Tax Increment Financing District No. 10., (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 or defeased and all other costs of the
Project have been paid; and
WHEREAS, the Tax Increment Financing plan adopted on September 8, 1992 for Tax
Increment Financing District No. 10 requires, pursuant to M.S. 469.176, Subd.1, that the
duration of the Tax Increment Financing District 10 will be up to and including the tax
collection year of 2009 or until the project debt of $160,000 has been repaid.; and
WHEREAS, the continuance of TIF District No. 10 serves 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 July 1, 2008,
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk
River Housing and Redevelopment 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 Authority.
DATED: March 3, 2008
Stewart Wilson, Chair
ATTEST:
Catherine Mehelich, Executive Director
S:AEDA\TIF\TiE10\TIF10 DECFRT RFSOL.DOC