5.6. SR 12-16-1996ity of
**ITEM 5.6.**
MEMORANDUM
iver
FROM:
DATE:
SUBJECT:
Mayor & City Council
Paul T. Steinman, Director of Economic
Development
December 11, 1996
Modifications to Tax Increment
Financing Plans for Districts No. 6 and
No. 8
Background
The proposed modifications to Tax Increment Financing Districts No. 6 and 8
can be completed administratively, that is without holding a public hearing,
due to the following factors:
the captured net tax capacity in either district will not increase.
the estimated tax increment expenditures in either district will not
increase.
Abiding by these two qualifications eliminates the need for formal plan
modifications which require a public hearing.
The council recently approved a resolution modifying Tax Increment
Financing Plans for Districts No. 2 and 3 in which circumstances were
similar to this proposed budget modification. The modifications for Districts
2 and 3 were also completed administratively and without the need for a
public hearing.
The purpose of the proposed modifications to Districts 6 and 8 assure that
these budgets will be in compliance with the 1996/97 state reporting
requirements.
Action Requested
Staff is recommending approval of the attached resolution which modifies
Tax Increment Financing Plans for Districts No. 6 and 8.
council\modtif68.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. 6 AND NO. 8
WHEREAS, The City has previously adopted Tax Increment Financing
Districts No. 6 and No. 8; and
VVHEREAS, The City intends to modify the activities to be financed by the
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 modification for
Tax Increment Financing Districts No. 6 and No. 8 is hereby approved.
Passed and adopted by the City Council of the City of Elk River this 16th day
of December, 1996.
Henry A. Duitsman, Mayor
ATTEST:
Sandra Thackeray, City Clerk
MODIFICATION OF
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 6
Section F., Financial Analysis of the TIF Plan, of Tax Increment Financing
District No. 6 is amended to read:
F.)
Financial Analysis for the TIF Plan
Preliminary Cost Estimates of the Improvements to be Financed'
Property Acquisition
Site Clearance and Site Preparation
Administrative
Other -
Capitalized Interest
Bond Discount
$270,000
46,000
4O,OO0
46,000
8,000
MODIFICATION OF
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 8
Section F., Financial Analysis of the TIF Plan, of Tax Increment Financing
District No. 8 is amended to read:
Financial Analysis for the TIF P]~n
Preliminary Cost Estimates of the Improvements to be Financed:
Site Acquisition, Clearance and Preparation
Administrative
Financial, Legal
$70,000
-0-
-0-