3.6. SR 11-18-1996**ITEM 3.6. **
~ty of
E
River
TO:
FROM:
MEMORANDUM
Mayor & City Council
Lori Johnson, Asst. City Administrator/
Finance Director
DATE:
November 18, 1996
SUBJECT: Modifications to Tax Increment
Financing Plans No. 2 and No. 3.
Background
At a previous meeting, the Council authorized the expenditure of certain Tax
Increment Financing funds for storm sewer improvements. In conjunction
with that action and in order to comply with the legal requirements for
reporting and modifying a tax increment financing plan, it was felt that the
City may be required to give notice and hold a public hearing to modify the
tax increment plans. After further research and discussions with the city
attorney, it has been determined that the proposed modifications to Tax
Increment Financing Plans 2 and 3 can be done administratively without
holding a public hearing. Because the amount of increment to be spent has
not increased and because this type of improvement expenditure was already
part of the amended budget, the modification can simply be approved by City
Council resolution.
Action Requested
The Council is asked to approve the attached resolution which modifies Tax
Increment Financing Plans No. 2 and No. 3. Finally, the Council is asked to
cancel the public hearing for December 16, 1996, which was scheduled for
this purpose.
council\tifmods.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 MODIFYING TAX INCREMENT FINANCING
DISTRICTS NO. 2 AND NO. 3
WHEREAS, The City has previously adopted Tax Increment Financing
Districts No. 2 and No. 3 and various amendments thereto
including modifications dated December 21, 1995; and
WHEREAS, The City intends to modify the activities to be financed by each
district without increasing the captured net tax capacity to be
retained or increasing the estimated tax increment expenditures
therefore eliminating the need for a formal plan modification as
required by Minnesota Statutes Section 469.175, Subd. 4.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River that the attached Tax Increment Financing Plan modifications for
Tax Increment Financing Districts No. 2 and No. 3 are hereby approved.
Passed and adopted by the City Council of the City of Elk River this 18th day
of November, 1996.
Henry A. Duitsman, Mayor
ATTEST:
Sandra Thackeray, City Clerk
MODIFICATION OF
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 2
Section 4, Financial Analysis of the TIF Plan, of Tax Increment Financing
District No. 2 is amended to read:
4.) Financial Analysis for the TIF Plan
Cost of the Public Development Activities to be Financed:
Infrastructure Improvements $175,000
MODIFICATION OF
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 3
Section 4, Financial Analysis of the TIF Plan, of Tax Increment Financing
District No. 3 is amended to read:
4.) Financial Analysis for the TIF Plan
Cost of the Public Development Activities to be Financed:
Infrastructure Improvements
$625,000