8.2. SR 06-20-1994 - Laserfiche WebLink

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rei ---\.) ( )j ~ll< ITEM 8.2. MEMORANDUM TO: MAYOR AND CITY COUNCIL FROM: WILLIAM RUBIN, ECONOMIC DEVEWPMENT COORDINATOAi 11-- JUNE 14, 1994 DATE: SUBJECT: PROPOSED MODIFICATION TO TAX INCREMENT FINANCING PLANS NO.1 & NO.3 (LIBRARY EXPANSION PROJECT) INTRODUCTION At its May 2, 1994 meeting, the Elk River City Council authorized a public hearing for June 20, to consider a modification to Tax Increment Financing Plans No.1 and No.3. The propose modification will amend the respective Plans to authorize additional tax increment expenditures that are not currently referenced in the Plans. BACKGROUND e The proposed modification to Plans No.1 and Plans No.3 supersedes City Council action of August 2, 1993 which resulted in the allocation of up to $177,000 in tax increment funds to underwrite a portion of the proposed $562,000 public h"brary expansion. Although this amendment was subsequently approved, the City's bond council advised Finance Director Lori Johnson that the amendment should be further revised to reflect a 20 percent TIF. debt service pledge--a fundamental requirement when bonds are used in conjunction with a TIF. contribution. Adding additional language to an adopted T.IF. plan triggers a new public hearing and a new administrative review cycle such as Planning commission review, School Board review, and County Board review. The current TIF. plan amendment incorporates the suggestions of bond counsel. That is, an additional $51,000 in T.IF. funds is referenced as a 20 percent debt service pledge (bond issue of$255,000 times 20 percent equals $51,000). ACTION REQUESTED e The Elk River City Council is asked to approve the modification to Tax Increment Financing Plans No.1 and No.3. This modification supersedes City Council action of August 2, 1993. P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425