10. SR 04-25-1995 - Laserfiche WebLink

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~~FT 2/95 CIP FINANCES • EXISTING TIF FUNDS Tax Increment Financing {TIF) Districts No. 1 and No. 3 were created to fund the water tower north of the School Administration building along Highway 169. Funds in excess of the repayment commitment are available for any number of activities as outlined by Minnesota State Statutes and as outlined in the City development plans. Excess TIF funds are never actually realized until all the bond payments have taken place. However, accurate projections can indicate if excess funds may be available for other infrastructure improvement such as extension of sewer and water mains, the construction of a water tower, the improvements of City streets, the purchase of park property, or the construction of a community center. In the past few years, the City has used excess TIF No. 1 and No. 3 funds for a variety of activities. These activities include the public improvements in Phase II of the Industrial Park, the purchase of park property, the purchase of the downtown redevelopment site, and for the financing of east Main Street redevelopment projects. Additional funds appear to be available in this District (please see the attached material from the Economic Development Coordinator regarding possible uses of these funds). These • funds could be used to underwrite the cost of trunk utilities, in either east or west Elk River, for a major industry or school. It should be noted that the State Legislature meets every year and TIF is annually discussed. The Legislature could change TIF rules at any time which could affect existing or future projects. One TIF project that the City has been decertified is the RDF TIF project. The City did collect in excess of $400,000 in this District before the project was decertified. Use of these funds for business park activities is being discussed. This is subject to City Council approval. • Page 10 of 13