5.3. SR 11-20-1995 - Laserfiche WebLink

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t 1� River FROM: DATE: * *ITEM 5.3. ** MEMORANDUM Mayor & City Council William Rubin, ED CoordinatryL, November 20, 1995 SUBJECT: Proposed Modification to Tax Increment Financing Plan No. 2 Introduction On November 20, the Elk River City Council will be asked to schedule a public hearing to consider a modification to Tax Increment Financing Plan No. 2. Back - 'round • Tax Increment Financing District No. 2 relates to a housing district that was established by the City of Elk River in July of 1985. A TIF grant was used to underwrite various infrastructure costs (utilities, curb and gutter, sidewalk, etc.) associated with the cost of developing a thirty -six unit apartment project on the campus of Guardian Angels of Elk River, Inc. This TIF District was scheduled for decertification by December 31, 1996. However, because of sufficient funds in this account, city staff (that is, city administrator, assistant city administrator, and economic development coordinator) believe that it is appropriate to decertify this District one year early, or by December 31, 1995. With this deadline looming on the horizon, it is equally important to initiate a modification to the TIF Plan so as to allow for the expenditure of funds for purposes authorized pursuant to Minnesota Statutes. Failure to adopt a plan amendment prior to the decertification of TIF District No. 2 will significantly limit how TIF funds attributable to this District can be accessed. It is estimated that approximately $80,000 exists in the District No. 2 account. A modification to the TIF Plan for District No. 2 will expand the eligible uses for which TIF funds can be expended. Potential uses include: various infrastructure initiatives, urban renewal initiatives, Mississippi • Riverfront Pathway initiatives, and business and industrial initiatives. 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425