HomeMy WebLinkAbout2015-025 (Modify the Tax Increment Financing Plan of Tax Increment District 11)RESOLUTION NO. 2015-025
A RESOLUTION TO MODIFY THE
TAX INCREMENT FINANCING PLAN OF DISTRICT 11
WHEREAS, the Tax Increment Financing Plan for Tax for Tax Increment Financing
District No. 11 (the Plan) was adopted by the City Council on January 3, 2014, and;
WHEREAS, the Washington County Auditor Certified the Original Net Tax Capacity of
the District on June 12, 2014, and;
WHEREAS, the Plan was filed with the Auditor of the State of Minnesota as required by
law on June 17, 2014, and;
WHEREAS, the Office of the TIF Division of the State Auditor has requested that the
Plan be modified to make more clear the allocation of tax increment expected from the district
and expected uses, and;
WHEREAS, the modifications required do not require the same procedures required for
approval of the Original Plan since the amendments do not enlarge the project area, increase the
net tax capacity, increase project costs or designate addition property. The modification does not
increase the bonded indebtedness but merely clarifies the amount of pay as you go and inter fund
loans that were described in different sections of the Plan. The modification reallocates the
OFUs set forth in the Original Plan, and;
NOW THEREFORE BE IT RESOLVED, as follows:
1. Section 2.03 of the Plan be modified by adding to the following clause:
"Section 2.03. Eligible site improvements and site preparation costs, as
described in Exhibit A to Exhibit C, of the Plan may be reimbursed to a
developer up to $1,462,000. Public improvements may be funded up to
$2,261,055."
2. Section 2.10 of the Plan be modified by restating that Section that will hereafter read
as follows:
"Section 2.10. Sources of Revenue/Bonded Indebtedness.
a. Sources. Public improvements costs, acquisition, relocation, utilities,
parking facilities, streets and sidewalks, site preparation costs and other costs
outlined in the Use of Funds will be financed through the annual collection of
tax increments. The City reserves the right to use other sources of revenue
legally applicable to the City and the Plan, including, but not limited to,
special assessments, general property taxes, state aid for road maintenance and
construction, proceeds from the sale of land, other contributions from
developers and investment income, to pay for the estimated public costs.
2015.
b. Bonded Indebtedness. The City may pay eligible developer site
improvements and site preparation costs undertaken pursuant to the Plan by
making up front payments of up to $287,500 that will be financed through
interfund loans and to reimburse a developer on a -pay -as you go basis for
eligible site improvements costs incurred by a developer up to $862,500.00,
for a total of up to $1,150,000.
REVENUES AND OTHER FINANCING
(OFSs)
SOURCES
BUDGET
AMOUNT
Tax Increment Revenue
Site improvements/preparation costs
$4,168,632
Interest and Investment Earnings
$2,261,055
$37,509
Total Estimated Project/Revenues
Estimated Interest Expense
$4,206,141"
3. Section 2.11 of the Plan be modified by changing the OFU table to hereafter read as
follows:
"EXPENDITURES AND OTHER FINANCING USES
(OFUs)
BUDGET
AMOUNT
Land/building acquisition
-0-
Site improvements/preparation costs
$1,462,000
Other Public Improvements
$2,261,055
Administrative Costs
$294,219
Estimated Interest Expense
$188,867
Total Estimate Project Costs to be paid from Tax
Increment
$4,206,141
Estimated Financing
Total amount of Bonds to be issued:
up to $1,150,000"
Enacted by the vote of City Council of the City of Stillwater this 3rd day of February,
-2-
CITY OF STILLWATER
sZer
Ted Kozlowski, Mayor
ATTEST:
A., WaAf,L..
Diane F. Ward, Clerk
MAGNUSON LAW FIRM
LICENSED IN MINNESOTA AND WISCONSIN
THE GRAND GARAGE
324 MAIN STREET SOUTH • SUITE#260 • STILLWATER, MN 55082-5165
TELEPHONE: (651)439-9464 • FACSIMILE: (651)439-5641
W11'W.MAGNUSONLAW FIRM.COM
DAVID T. MAGNUSON
DTMAGNUSON@MAGNUSONLA W FIRM.COM
MEMORANDUM
CASI R. BUTTS
CRL3®MAGNUSONLA W FIRM.coM
TO: City Council and City Staff
FROM: David T. Magnuson DflAil
DATE: January 27, 2015
RE: Modification of the Financing Plan for TIF District No. 11
The Financing Plan for Tax Increment District No. 11 was adopted in June of 2014
and once the Original Tax Capacity of the District was certified by Washington County, the
Plan was filed with the State Auditor. This is standard procedure for the creation of a TIF
District. With all new plans, and in the ordinary course of business, the State Auditor
examines new plans and comments with suggestions for changing the Plans to comply with
all the requirements of TIF Law. In December of 2014, the Auditor's office informally
contacted the City and suggested several changes in the Plan to clarify and make more
understandable how the expected TIF would be budgeted for planned uses. Staff views the
modifications as administrative, and to clarify options made in the Plan that were not clearly
explained. The attached Resolution make the needed corrections. Staff stands ready to
answer any questions.
DTM/jp