3.3. SR 09-22-1997 - Laserfiche WebLink

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ITEM ~ty of MEMORANDUM iver FROM: DATE: SUBJECT: Mayor & City Council Paul T. Steinman, Director of Economic Development September 10, 1997 Call Public Hearing for Modification of TIF District No. 5 Issue The EDA unanimously supported a motion to ask the City Council to call a public hearing for December 1, 1997, 6 p.m., at City Hall on proposed modifications to Tax Increment Financing District No. 5. The purpose of this issue before the City Council this evening is to approve the attached resolution which authorizes staff to prepare modifications to TIF District No. 5 and establishes December 1, 1997, 6 p.m., as the public hearing date and time. Background At the end of December 1997, TIF District No. 5 (Alltool) is scheduled to decertify. At that time it is estimated there will be approximately $225,000 in excess tax increment in that district. The EDA has asked the Council to call the public hearing to modify the budget in TIF District No. 5 to allow these excess increments to be used for industrial/business park land acquisition. The proposed modification would also include the use of $66,200 of these funds to reimburse the EDA for its purchase of a lot in the Elk River Industrial Park which was completed in June of 1997. It is imperative that these excess funds be either spent or committed by December 31, 1997. If this cannot be accomplished, the excess funds will be required to be returned to the county for redistribution to the various taxing jurisdictions. TIF District No. 5 is a City Council tax increment district, therefore, control of modification of this budget lies in the hands of the City Council. Staff feels it is appropriate for the Economic Development Authority to make recommendations on the budget modification and use of these funds to the 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425