7.2 SR 01-03-2022 - Laserfiche WebLink

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bakertl*40 Memo To: City Council of the City of Elk River Brent O'Neil, City of Elk River From: Mikaela Huot, Director Date: January 3, 2022 Subject: Proposed Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 28 (Jackson Hills Phase II Project) Action Item The City of Elk River received a request for tax increment financing assistance from The Briggs Company (the developer) related to construction of an approximate 44-unit multifamily housing project with adjacent parking. The developer has requested tax increment assistance through the establishment of a Housing TIF District to assist with financing a portion of the extraordinary project costs related to site development and soils correction to allow for construction of the proposed new housing development. The City Council is being asked to open and hold the public hearing on Monday, January 3 to consider approval of the TIF Plan and Tax Increment Financing (Housing) District No. 28. Tax increment financing has been identified as a financing tool to assist with offsetting a portion of the extraordinary costs based on the incremental new taxes generated by the development. The TIF Plan for the proposed TIF District provides the City with the authority to use tax increments from the new project on eligible expenditures. The projected public costs as listed in the TIF Plan are based on projected available tax increment revenues generated over 15 years to be consistent with the City's TIF policy relative to the maximum term of increment collections from a housing TIF district. The statutorily required maximum term of a housing TIF District is up to 26 years. The purpose of the TIF Plan including the budget for revenues and project costs is to provide authority for the City to use tax increments generated by the project on eligible project costs of the district. Tax increment revenues may be spent within the boundaries of the TIF District and Project Area (with some limitations) to support extraordinary costs associated with construction of the housing project. Multiple steps need to be taken prior to establishing a TIF District, including notifications to the County and School District, Planning Commission review, HRA review and recommendation, publication of a public hearing notice, and the holding of a public hearing. To comply with the statutory requirements and work towards the January 3 public hearing date, notices have been sent to the County Commissioner on November 18 and County and School Board (draft TIF Plan and fiscal and economic impacts) on December 3. Publication of the hearing notice for the TIF District creation was Saturday, December in Elk River Star News. Pursuant to the City's procedures for reviewing TIF requests, the project and application was introduced to the Joint Finance Committee for review and recommendation at its October and November meetings and to the HRA on December 4. Planning Commission review was December 21. Following review by the HRA on January 3, it is recommended the City Council act on the TIF District following the public hearing on January 3. The public hearing date is the time in which City Council would take any public comment, and after the hearing, consider the adoption of a resolution approving the TIF District. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP