4.4. SR 12-21-1995 - Laserfiche WebLink

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ar Y tylk R i MEMORANDUM ver TO: Mayor & City Council Introduction ITEM 4.4. FROM: William Rubin, ED Coordinatp ' DATE: December 21, 1995 SUBJECT: Public Hearing on Modification to Tax Increment Financing Plan No. 2 At its November 20 meeting, the Elk River City Council authorized a public hearing for December 21, 1995, to consider a modification to Tax Increment Financing Plan No. 2. The proposed modification will amend TIF Plan No. 2 to authorize tax increment expenditures that are currently referenced in the Plan. Back - 'round • Tax Increment Financing District No. 2 is considered a housing district that was created in 1985 by City Council action. The geographic boundaries of District No. 2 reflect the area of Guardian Angels of Elk River, Inc., campus attributable to the 36 -unit project known as Evans Park Apartments. Although bonds for the Evans Park TIF grant will not be retired until early 1998, the TIF Plan currently indicates that this district will be decertified in 1996. However, a review of the Evans Park TIF debt service account allows the city to decertify this district one year earlier - or prior to the end of 1995. As a result, property taxes paid by the Evans Park Apartments in 1996 will go to the county for redistribution pursuant to the respective levies of the local taxing jurisdictions. C7 Although debt service obligations still exist on the Evans Park TIF bonds, it is estimated that approximately $80,000 will be available from District No. 2 for other projects. As a result, a modification to Plan No. 2 was initiated. The proposed modification identifies numerous eligible expenditures that are authorized by the Tax Increment Statute. The following activities /expenditures are proposed as modifications to TIF Plan No. 2: 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425