3.11. SR 03-17-2008Elk REQUEST FOR ACTION
...r.
River
To Item Number
Ci CouncIl 3.11.
Agenda Section Meeting Date Prepared by
Consent Match 17, 2008 Tim Simon, Finance Director
Item Description Reviewed by
Concur and Approve Decertification of Tax Increment Loci ohnson, Ci Administrator
Financing District No.6 (Mork Clinic), District No.7 Reviewed by
(AmericInn), and District No.10 (Elk Terrace)
Action Requested
Concur with the Economic Development Authority (EDA) and Housing Redevelopment Authority
(HRA) to approve decertification of Tax Increment Financing (TIF) istrict No.6 (Mork Clinic), TIF
district No.7 (AmericInn), and TIF district No.10 (Elk Terrace).
BackgroundlDiscussio n
TIF district No.6 and No.7 were redevelopment districts and the statutory maximum life for this type of
district is 25 years after receipt of first increment. The obligations of the TIF districts and support of
other districts has been completed; it is necessary to decertify the districts at this tune.
TIF district No.10 was to provide financing assistance far the construction of a 23-unit senior apartment
housing project and the statutory maximum life for this type of district was limited up to the year 2009 ox
until the bond obligations were paid. The obligations of the district have been paid and the support to
other districts has been completed; it is necessary to decertify the district at this time.
Financial Impact
All taxes payable on the parcels of property will be distributed to the school, county, and city in the same
manner as all property taxes. The TIF tax generated for taxes payable 2007 is approximately $69,000.
Attachments
^ Resolution approving decertification of Tax Increment district No.6 (Mork Clinic) and district
No.7 (AmericInn) from the EDA
^ Resolution approving decertification of Tax Increment district No.10 (Elk Terrace) from the
H1tA
Action Motion by Second by Vote
Follow Up
S:\Council\Tim\DecertifyDistrict#6#7 #10.doc
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION OS-
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 Inclement 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
WHERF,AS, the Tax Increment Financing plan adopted on October 9, 1989 fox Tax
Increment Financing District No. 6 requires, pursuant to M.S. 469.176, Subd.l, 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 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 July 1, 2008,
NOW THEREFORE, BE IT RESOLVED by the Boazd 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 1Q 2008
Jef ongo ,. sident
ATTEST:
~~~ ,~~~
Catherine Mehelich, Executive Director
S:\EDA\TIF\TiE6\TIF 6 DECERT RESOLDOC
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 Inclement Financing plan adopted on February 12, 1990 fox 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 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 July 1, 2008,
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk
River Economic Development Authority that the cup'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 distract and to no longer remit tax increment from the Distract to the Authority.
DATED: Mazch 10, 2008
of ongoll, xe ident
ATTEST: //
~~~%~~
Ca erne ehelich, Executive Director
5:\EDA\TIF\Ti£!\TIF 7 DECERT RESOL.DOC
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION 08-O1
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 "Authoritp'~ 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 fox Tax
Increment Financing District No. 10 requires, pursuant to M.S. 469.176, Subd.l, that the
duration of the Tax Increment Financing District 10 will be up to and including the tax
collection year of 2009 ox until the project debt of $160,000 has been repaid.; and
WHEREAS, the continuance of TIF District No. 10 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 July 1, 2008,
NOW THEREFORE, BE IT RESOLVED by the Board of Comxaissionexs 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 Shetbume County to decertify the District as a tax
inclement district and to no longer remit tax increment from the District to the Authori
DATED: Match 3, 2008 '" J~
Stewart Wilson, Chair
Catherine iNlehelich, Executive Director
5:\EDA\TIF\Tif10\TIF10 DECERT RESOLDOC