5.0 EDSR 03-10-2008ITEM # 5.
Elk -~
River
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Economic Development Authority
Catherine Mehelich, Director of Economic Development /~~~
L
March 10, 2008
Consider Resolutions Approving the Decertification of
TIF District No. 6 and TIF District No. 7 in the City of Elk River
Attachments
• EDA Resolution Approving the Decertification of TIF District No. 6 (Mork Clinic)
• EDA Resolution Approving the Decertification of TIF District No. 7 (AmericInn)
Background
In 1989 the EDA and City created Redevelopment TIF District No. 6 to acquire and clear
three substandard single family homes located on 3"' Street in order for Mork Clinic
(currently known as RiverWay Clinic) to build a 10,000-sf medical facility in the city.
In 1990 the EDA and City created Redevelopment TIF District No. 7 to acquire and clear
two substandard structures located on Highway 10 East in order to assist the construction of
a 42-unit AmericInn motel in the city.
Issue
The duration of both TIF District 6 and TIF District 7 was limited to 25 years after the
receipt of the first tax increment (unti12016). Since the bond obligations of the TIF
Districts have been recently paid, it is necessary to decertify the TIF Districts at this time.
As a result of the decertification, all local property taxes generated by the properties (an
estimated $61,000 combined) 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 EDA is asked to consider action on the
following attached resolutions:
Resolution No. 08-_ Approving the Decertification of TIF District No. 6
Resolution No. 08-_ Approving the Decertification of TIF District No. 7
S:\EDA\TIF\Decert Memo 3.10.08.doc
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION 08-
RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT
FINANCING DISTRICT NO. 6 WITHIN DEVELOPMENT
DISTRICT NO. 1 IN THE CITY OF ELK RIVER
WHEREAS, on October 9, 1989 the Elk River Economic Development Authority (the
"Authority") created its Tax Increment Financing District No. 6., (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 and all other costs of the Project have
been paid; and
WHEREAS, the Tax Increment Financing plan adopted on October 9, 1989 for Tax
Increment Financing District No. 6 requires, pursuant to M.S. 469.176, Subd.1, that the
duration of the Tax Increment Financing District 6 will be twenty-five years after the date of
receipt by the City of the first tax increment; and
WHEREAS, the continuance of TIF District No. 6 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 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 Authority.
DATED: March 10, 2008
Jeffrey A. Gongoll, President
ATTEST:
Catherine Mehelich, Executive Director
S:A1?llAV"ITI~\Tif6\TIF 6 DECERT RESOL.DOC
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION 08-
RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT
FINANCING DISTRICT NO. 7 WITHIN DEVELOPMENT
DISTRICT NO. 1 IN THE CITY OF ELK RIVER
WHEREAS, on February 12, 1990 the Elk River Economic Development Authority (the
"Authority") created its Tax Increment Financing District No. 7., (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 and all other costs of the Project have
been paid; and
WHEREAS, the Tax Increment Financing plan adopted on February 12, 1990 for Tax
Increment Financing District No. 7 requires, pursuant to M.S. 469.176, Subd.1, that the
duration of the Tax Increment Financing District 7 will be twenty-five years after the date of
receipt by the City of the first tax increment; and
WHEREAS, the continuance of TIF District No. 6 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 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 Authority.
DATED: March 10, 2008
Jeffrey A. Gongoll, President
ATTEST:
Catherine Mehelich, Executive Director
s:~rnn\rlr\i'~~V'i'if~ ~ n~ccR~ i~so~,.ooc