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HomeMy WebLinkAbout10F - Decert TIF Keyland Homes STAFF AGENDA REPORT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: BACKGROUND: ISSUES: ALTERNATIVES: May 3, 2004 10- F JOHN SULLIVAN, COMMUNITY DEVELOPMENT DIRECTOR CONSIDER APPROVAL OF RESOLUTION AUTHORIZING THE DECERTIFICATION OF TIF DISTRICT 2-1 (KEYLAND HOMES) The purpose of this item is to consider the decertification of Tax Increment Finance District (TIF) #2-1 (Keyland Homes). On September 20, 1993, the City Council approved establishment of TIF District 2-1, which was an approximately 1.8 acre parcel incorporated as part of the Waterfront Passage Business Park. Upon initial establishment of the District in 1993, Keyland Homes developed an approximate 18,000 sq. ft. production/war~house facility. On January 5, 1998, the City Council approved a modification to TIF District 2-1, which provided for the expansion of the District. The expansion was -necessary to accommodate the acquisition of approximately one-half acre of land by H & S, LLC (Keyland Homes) adjacent to its existing site. The expansion and modification allowed an expansion of up to 15,000 additional square feet of the production/warehouse facility. The District is now completed. All payments have been completed and District 2-1, according to the Developer's Agreement and state statutes, should be decertified. There do not appear to be any outstanding issues with respect to the decertification of TIF District 2-1. This decertification means that the property taxes generated by this property will now be distributed to the taxing jurisdictions of Scott County, School District 719, and miscellaneous taxing districts. The format of the resolution is in accordance with the decertification process and is consistent with previous decertification actions by the City of Prior Lake. The City Council has three alternatives: 1. Adopt the Resolution as presented, or with amendments. 2. Further review the Resolution and direct staff to provide additional information to the City Council. 3. Do not approve the Resolution as presented. h:\tif fites\5-17..()4 tif district 2-1 decertification staff agenda report.doc www.cityofpriorlake.com 1 Phone 952.447.4230 / Fax 952.447.4245 RECOMMENDATION: Adopt Alternative #1. ACTION REQUIRED: A motion and a second to adopt the proposed resolution. ATTACHMENTS: I. Resolution #04-XXX REVIEWED BY: h: \tif files\5-17 -04 tif district 2.1 decertification staff agenda report. doc 2 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-xxx RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 2-1 OF THE CITY OF PRIOR LAKE. MOTION BY: SECOND BY: WHEREAS: On September 20, 1993, the City of Prior Lake (the "City") created its Tax Increment Financing District No. 2-1 ("District No. 2-1 ") within its Project Area No.2 (the "Project Area"); and subsequently modified District 2-1 of Development District No. 2 on January 5, 1998 to increase the size of District 2-1 approximately .53 acres to enable the construction of an additional 15,000 square foot expansion of the production/warehouse facility; and WHEREAS: As of the date hereof all bonds and obligations to which tax increment from District No. 2-1 have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS: The City desires by this resolution to cause the decertification of District No. 2-1 after which all property taxes generated by property within the District will be distributed in the same manner as all other property taxes. NOW THEREFORE, BE IT RESOLVED BY THE CITY OF PRIOR LAKE, MINNESOTA: 1. The above recitals are incorporated herein as if fully set forth. 2. The City's staff shall take such action as is necessary to cause the County Auditor of Scott County to decertify the District No. 2-1 as a tax increment district and to no longer remit tax increment from the District No. 2-1 to the City. Passed and adopted this 3rd day of May, 2004 Yes No Haugen Haugen Blomberg Blomberg LeMair LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager Decertification of TIF District 2-1 Keyland Homes RESOLUTION 04.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245