6. EDSR 10-08-2007ITEM # 6.
fiver
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: October 8, 2007
SUBJECT: Consider Resolutions Approving the Decertification of TIF
District No. 17 and TIF District No. 20 in the City of Elk River
Attachments
• EDA Resolution Approving the Decertification of TIF District No. 17 (Decker)
• EDA Resolution Approving the Decertification of TIF District No. 17 (SuperMats)
Background
In 1998 the EDA and City created TIF District No. 17 in order to provide financing
assistance for the construction of a 25,000 square foot multi-tenant industrial facility by
David Decker. Also in 1998 the EDA and City created TIF District No. 20 in order to
provide financing assistance for the construction of a 40,000 square foot industrial facility by
Bryan Jones for SuperMats, Inc.
Issue
The duration of both TIF District 17 and TIF District 20 was limited to 8 years after the
receipt of the first tax increment. Since the obligations of the TIF Districts to the
developers and its useful life toward financially supporting other TIF Districts has reached
its term, 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 $79,000
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. 07-06 Approving the Decertification of TIF District No. 17
Resolution No. 07-07 Approving the Decertification of TIF District No. 20
S:\EDA\TIF\Decert Memo 10.8.07.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 or 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
Increment Financing District 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 or 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 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 Authority.
DATED: October 8, 2007
Jeffrey A. Gongoll, President
ATTEST:
Catherine Mehelich, Executive Director
S:\EDA\TIF\TIF17\DECF.R'I' RESOL.DOC
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 Increment Financing District No. 20., (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 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 District No. 20 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 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 Authority.
DATED: October 8, 2007
Jeffrey A. Gongoll, President
ATTEST:
therine Mehelich, Executive Director
S:\EDA\"ITE\'I'if20\DECERT RESOL.DOC