4.9. SR 08-16-1993 - Laserfiche WebLink

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. TIF No. 1 and No. 3 Nuance Minnesota Statutes addresses how a municipality may expend TIF funds from a TIF District. Put simply, TIF funds from a small geographic area known as a TIF District can be expended on limited, eligible items or projects that are found outside of the TIF District but within the broader "project area". In Elk River, the project area is the corporate limits. Although TIF funds Main, and are proposed project, the nuance that of not creating a were used in the 1992 project at Evans and to be used for the 1993 office-townhouse or wrinkle with the use of these funds is new TIF District. The City Council and EDA Commissioners are acutely aware of the ramifications of creating new TIF Districts. The primary consequence of a new TIF District is that of a loss of a portion of the City's state aid. With recent TIF Districts, the City, EDA, and HRA have placed the loss of state aid burden on the project's end user. That is, the end user, pursuant to a contract for private development, agrees to make the City whole in the event the newly-created TIF District results in the loss of state aid. During the most recent legislative session, developer payment of state aid losses was prohibited. Ie Given this new restriction, a city may be far better off in using TIF funds from existing Districts to help leverage certain projects. Because no TIF District is created, the City, through its leveraged TIF funds, enables a project like Mr. Chuba's to go immediately on the tax rolls for the benefit of the local taxing jurisdictions (city, county, and school district) . Because this is an owner-occupied office project, the end-users would likely suffer the consequences of the creation of a new TIF District. However, if Mr. Chuba was proposing the construction of speculative office space that he would own long-term, he, rather than the end users, would suffer the consequences of any loss in state aid. Main Street Corridor e The writer of this memo views the Main Street corridor from Highway 169 to Highway 10 as a critical corridor for Elk River. Given the recent projects along Main Street and Evans Avenue, it is reasonable to expect that similar projects will occur along this corridor so that eventually it will connect with the traditional Central Business District area at Main Street and Jackson Avenue. Most of these projects, however, will require substantial demolition and site preparation costs. That's where TIF funds from No. 1 and No. 3 come into play. The alternative is to encourage the conversion of single family homes along this corridor into office-type uses. Utilizing funds from TIF Districts No. 1 and No.3, the City