5.10 PCSR 05-24-1994 - Laserfiche WebLink

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r-L ) J\j AGENDA ITEM 5. 10 \;. 4 y of � MEMORANDUM flkRi' ver TO: ELK RIVER PLANNING COMMISSION FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINAT `t DATE: MAY 16, 1994 SUBJECT: PROPOSED MODIFICATION TO TAX INCREMENT FINANCING PLANS NO. 1 AND NO. 3 (PROPOSED MODIFICATION SUPERSEDES CITY COUNCIL ACTION OF AUGUST 2, 1993) INTRODUCTION On Monday, June 20, 1994, the Elk River City Council will conduct a public hearing to consider a modification to Tax Increment Financing Plans No. 1 and No. 3. The proposed modification will amend the respective Plans to authorize additional tax increment expenditures that are not currently referenced in the Plans. This proposed modification supersedes City Council action of August 2, 1993, and Planning Commission action of July 27, 1993, respectively. BACKGROUND In July and August 1993, the Elk River Planning Commission and City Council considered a modification to TIF Plans No. 1 and No. 3. The proposed modification resulted in the allocation of up to $177,000 in tax increment funds to underwrite a portion of the proposed $560,000 public library expansion. Although this amendment was subsequently approved, the City's bond counsel has advised the City Finance Director that the amendment should be further revised to reflect a 20 percent TIF debt service pledge -- a fundamental requirement when bonds are issued in conjunction with a TIF contribution. Adding additional language to an adopted TIF Plan triggers a new public hearing and a new administrative review cycle - including Planning Commission review of the proposed revisions. Hence, this item is • before you again and the Plan incorporates the 20 percent TIF debt service pledge. P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425