6.8. SR 01-22-1996~ity of
ITEM 6.8.
[¥er
FROM:
DATE:
MEMORANDUM
Mayor & City Council
Pat Klaers, City Administrator
January 22, 1996
SUBJECT: Tax Increment Resolution
TIF No. 4 was established to help pay for utility infrastructure in the western
portion of the city in order for certain areas to be developed for business and
industrial uses. It has long been discussed by the City Council that the most
appropriate use of these funds would be to help pay for the water tower and
treatment facility in the western part of the city. When bonds were sold for
this project in 1994, one of the financing options reviewed in the bond
documents was use of TIF funds. The use of these funds in this manner is
consistent with state law and consistent with the original intent of the TIF
District.
Recommendation
Staff recommends adoption of the attached resolution which contractually
commits TIF No. 4 funds for the repayment of bonds that were issued for the
western area water tower and water treatment facility.
s:\council\tif4fnd.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
RESOLUTION 96 -
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION DIRECTING THAT TAX INCREMENT FINANCING
FUNDS FROM TAX INCREMENT FINANCING DISTRICT NO. 4 BE
APPLIED TO THE COSTS OF THE GARY STREET WATER TOWER
WHEREAS,
the City Council of the City of Elk River, on November 30,
1987, adopted Tax Increment Financing Plan for Tax
Increment Financing District No. 4; and,
WHEREAS,
the City has received certain tax increment funds from Tax
Increment Financing District No. 4; and,
WHEREAS,
the Tax Increment Financing Plan for Tax Increment
Financing District No. 4 indicated that tax increment
generated by the Tax Increment Financing District would be
used to contribute to the cost of improvement to the City's
water supply system and sanitary sewer system, including
the cost of construction of an elevated water tower; and,
WHEREAS,
the City of Elk River issued bonds in 1994 and constructed
an elevated water tower and a water treatment facility on
Gary Street during 1995.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River, as follows:
All tax increment received from Tax Increment Financing District No.
4 is hereby designated to be used to contribute to the bond payments
for the Gary Street elevated water tower and water treatment facility.
Passed and adopted by the City Council of the City of Elk River this 22nd day
of January, 1996.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk