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CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 22, 2014
AGENDA#: 5G
PREPARED BY: DAN ROGNESS, COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR
PRESENTED BY: DAN ROGNESS
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE
DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 4-1
DISCUSSION: Introduction
Tax Increment Financing (TIF) District No. 4-1 was created to assist with the
development of Onsite Engineering & Forensic Services, Inc. in the Deerfield
Business Park. The property is Lot 1, Block 1, Deerfield Industrial Park 3rd
Addition. As a 10-year Economic Development District with nine years of
increment, the date of required termination was established to be at the end of
2014. The city council will act by resolution to decertify this TIF District.
History
On May 16, 2005, the City of Prior Lake established Tax Increment Financing
(Economic Development) District No. 4-1 and approved the Tax Increment
Financing Plan pursuant to Minnesota Statutes. A pay-as-you-go TIF Note was
established to reimburse Onsite Engineering for eligible development expenses.
Current Circumstances
This action formally ends the life of TIF District 4-1 as required by state statute and
according to the TIF Plan based on the first tax increment year in 2006.
Conclusion
This TIF District must be decertified by City Council action no later than 12/31/14.
ISSUES: By decertifying TIF District 4-1, the captured taxes will begin to be distributed to all
taxing jurisdictions. The total tax increment in 2014 was $7,755; of that amount the
city will begin to receive approximately $2,325 annually based upon future levies.
FINANCIAL TIF 4-1 tax increments will begin to go to all taxing jurisdictions.
IMPACT:
ALTERNATIVES: 1. Motion and a second, as part of the Consent Agenda, to approve a resolution
approving the decertification of TIF District No. 4-1.
2. Motion and a second to deny approval of this resolution.
RECOMMENDED Alternative #1
MOTION:
ATTACHMENTS: None
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RESOLUTION 14-XXX
RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 4-1
MOTION BY: SECOND BY:
WHEREAS, The City of Prior Lake, Minnesota(the "City") established Tax Increment Financing (Economic
Development) District No. 4-1 (the"TIF District") and approved the Tax Increment Financing
Plan (the"TIF Plan") pursuant to Minnesota Statutes by Resolution No. 05-85 on May 16,
2005; and
WHEREAS, The Tax Increment Financing Plan for the TIF District established 2014 as the last year for tax
increments based upon a start year of 2006 for the first increment received; and
WHEREAS, The City desires by this resolution to cause the decertification of the TIF District at the end of
its term on December 31, 2014, after which all property taxes generated by property within the
TIF District will be distributed in same manner as all other property taxes.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Manager is authorized and directed to take such action as necessary to cause the Scott County
Auditor to decertify TIF District No. 4-1 on December 31, 2014 and to notify the Office of the State Auditor.
PASSED AND ADOPTED THIS 22nd DAY OF DECEMBER, 2014.
VOTE Hedberg Keeney McGuire Morton Soukup
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager