5.4. SR 06-21-2010 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ci Council 5.4. Agenda Section Meeting Date Prepared by Community Development June 21, 2010 Catherine Mehelich, Director of Economic Develo ment Item Description Reviewed by Consider Resolution Approving a Spending Plan for Tax Increment Financing District No. 16 -Public Hearing Reviewed by Action Requested Following a public hearing, the Council is asked to adopt attached Resolution Approving a Spending Plan for Tax Increment Financing District No. 16 Background/Discussion At its May meeting, the HRA authorized staff to proceed in preparations for an amendment to the HRA's TIF District No. 16 (King & Main). The purpose of the amendment, as authorized by recent legislation, is to utilize existing TIF revenues in order to stimulate construction or rehabilitation of private development in a way that will also create or retain jobs. The HRA established TIF District #16 in the late 1980's to redevelop properties at King Ave and Main St in downtown. The debt obligation, which reimburses the HRA for eligible costs, is scheduled to be paid in full at the end of 2010. At that time the HRA would be required to decertify the district and distribute the property taxes to the city, county and school district. Under this legislation the HRA would defer its final payment of TIF obligations ($39,671.78) for 2 years in order to preserve roughly $100,000 of financing assistance for an eligible project as defined in the attached Spending Plan. Since no specific project has been identified for the use of the funds, the attached Spending Plan has been drafted to generally describe the most desirable types of private development that the city may be willing to provide financial assistance. Following the City Council's public hearing and adoption of the Spending Plan, the HRA would be authorized to consider specific private development proposals consistent with the uses outlined in the Spending Plan. A critical limitation in the amendment is the requirement that construction or renovation of the eligible project commences before July 1, 2011 and that the authority to spend the tax increments collected under this subdivision expires December 31, 2011. Financial Impact The estimated tax increment to be collected by the HRA in 2010 is $55,645.10. The deferral of tax increment for 2-years will be just over $100,000 that could be utilized under the proposed Spending Plan. Attachments • Resolution Approving a Spending Plan for Tax Increment Financing District No. 16 C:\Users\jjohnson\AppData\Local\Microsoft\Windows\Temporary Internet Files\OLKI~F06\6 21 10 CC Action Requested.doc