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REQUEST FOR ACTION <br />To Item Number <br />Housin & Redevelo ment Authori 5 <br />Agenda Section Meeting Date Prepared by <br /> June 7, 2010 Catherine Mehelich, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider Resolution 10-01 Adopting a Spending Plan for Tax <br />Increment Financing District No. 16 and Modifying Interfund Reviewed by <br />Loan Resolution 02-02 <br />Action Requested <br />Adopt attached Resolution 10-01. <br />Background/Discussion <br />At its May meeting the HRA authorized staff to proceed in preparations for an amendment to the HRA's <br />TIF District No. 16 (King & Main). The purpose of the amendment, as authorized by recent legislation <br />is to utilize existing TIF revenues in order to stimulate construction or rehabilitation of private <br />development in a way that will also create or retain jobs. Under this legislation the HRA would defer <br />final payment of TIF obligations ($39,671.78) to itself for 2 years in order to provide roughly $100,000 of <br />financing assistance to an eligible project as defined in the attached Spending Plan. <br />Since no specific project has been identified for the use of the funds, the attached Spending Plan has been <br />drafted by the HRA's attorney to generally describe the most desirable types of private development that <br />the city may be willing to provide financial assistance. Specific private development proposals would <br />require approval by the HRA following the City Council's public hearing and adoption of the Spending <br />Plan. The public hearing is scheduled for June 21, 2010. <br />A critical limitation in the amendment is the requirement that construction or renovation of the eligible <br />project commences before July 1, 2011 and that the authority to spend the tax increments collected under <br />this subdivision expires December 31, 2011. <br />Financial Impact <br />The estimated tax increment to be collected in 2010 is $55,645.10. The deferral of tax increment for 2- <br />years will be just over $100,000 that could be utilized under the proposed Spending Plan. <br />Attachments <br />• HRA Resolution 10-01 Adopting a Spending Plan for Tax Increment Financing District No. 16 and <br />Modifying Interfund Loan Resolution 02-02 <br />Action Motion by Second by Vote <br />Follow Up <br />N:\Departments\Communiry Development\Economic Development\TIF\TIF16\Amendment\6.7.10 Action Requested.doc <br />