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ITEM # 5. <br />Elk -~ <br />River <br />MEMORANDUM <br />TO: <br />FROM: <br />DATE: <br />SUBJECT: <br />Economic Development Authority <br />Catherine Mehelich, Director of Economic Development /~~~ <br />L <br />March 10, 2008 <br />Consider Resolutions Approving the Decertification of <br />TIF District No. 6 and TIF District No. 7 in the City of Elk River <br />Attachments <br />• EDA Resolution Approving the Decertification of TIF District No. 6 (Mork Clinic) <br />• EDA Resolution Approving the Decertification of TIF District No. 7 (AmericInn) <br />Background <br />In 1989 the EDA and City created Redevelopment TIF District No. 6 to acquire and clear <br />three substandard single family homes located on 3"' Street in order for Mork Clinic <br />(currently known as RiverWay Clinic) to build a 10,000-sf medical facility in the city. <br />In 1990 the EDA and City created Redevelopment TIF District No. 7 to acquire and clear <br />two substandard structures located on Highway 10 East in order to assist the construction of <br />a 42-unit AmericInn motel in the city. <br />Issue <br />The duration of both TIF District 6 and TIF District 7 was limited to 25 years after the <br />receipt of the first tax increment (unti12016). Since the bond obligations of the TIF <br />Districts have been recently paid, it is necessary to decertify the TIF Districts at this time. <br />As a result of the decertification, all local property taxes generated by the properties (an <br />estimated $61,000 combined) will be distributed to the school, county and city in the same <br />manner as all other property taxes. <br />Requested Action <br />In accordance with statutory requirements, the EDA is asked to consider action on the <br />following attached resolutions: <br />Resolution No. 08-_ Approving the Decertification of TIF District No. 6 <br />Resolution No. 08-_ Approving the Decertification of TIF District No. 7 <br />S:\EDA\TIF\Decert Memo 3.10.08.doc <br />