HomeMy WebLinkAbout10H - TIF Dist. 2-5, 2-6, 2-7, 2-8
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
MARCH 20, 2006
10H
PAUL SNOOK, ECONOMIC DEVELOPMENT DIRECTOR
AGENDA ITEM:
CONSIDER APPROVAL OF RESOLUTIONS AUTHORIZING THE
DECERTIFICATION OF TIF DISTRICT 2-5 (EM PRODUCTS); TIF
DISTRICT 2-6 (NBC); TIF DISTRICT 2-7 (AWARD PRINTING); AND
TIF DISTRICT 2-8 (HANSEN)
DISCUSION:
Introduction
The purpose of this item is to consider the decertification of the following
Tax Increment Financing (TIF) Districts: #2-5 (EM Products); #2-6
(NBC); #2-7 (Award Printing); and TIF #2-8 (Hansen).
Historv
TIF District #2-5 (EM Products)
On May 22, 1995, the City Council approved establishment of TIF District
2-5 which was an approximately 3.7 acre parcel incorporated as part of
the Waterfront Passage Business Park to finance site preparation and
infrastructure improvements. Upon establishment of the District in 1995,
EM Products developed a 28,000 sq ft manufacturing facility for
production of industrial mufflers and noise abatement equipment. All
payments have been completed and District 2-5, according to the
Developer's Agreement and state statutes, should be decertified.
TIF District #2-6 (NBC)
On September 19, 1995, the City Council approved establishment of TIF
District 2-6, which was an approximately 1 acre parcel incorporated as
part of the Waterfront Passage Business Park, to finance site
preparation and infrastructure improvements. Upon establishment of the
District in 1995, NBC Products developed a 19,000 square foot
production and warehouse facility for the manufacturing of electronic
filtration systems. On January 5, 1998, City Council approved a
modification to the district to include an additional 2 acres for
development of a 14,000 square foot addition to the facility. All
payments have been completed and District 2-6, according to the
Developer's Agreement and state statutes, should be decertified.
TIF District #2-7 (Award Printino)
On March 4, 1996, the City Council approved establishment of TIF
District 2-7, which was an approximately 3 acre parcel incorporated as
part of the Waterfront Passage Business Park, to finance site
r:\agenda reports\mar 20 2006\tif district 2-5,2-6, 2-7, ~~ei&8~~~e~effM3-20-06).doc
Phone 952.447.4230 / Fax 952.447.4245
preparation and infrastructure improvements. Upon establishment of the
District in 1996, Award Printing, Inc. developed a facility for the operation
of the company. All payments to date have been completed and District
2-7, according to the Developer's Agreement and state statutes, should
be decertified.
TIF District #2-8 (Hansen)
On April 4, 1997, the City Council approved establishment of TIF District
2-8, which was an approximately 2 acre parcel incorporated as part of
the Waterfront Passage Business Park, to finance site preparation and
infrastructure improvements. Upon establishment of the District in 1997,
David Hansen developed a 12,000 square foot manufacturing /
warehouse facility. All payments to date have been completed and
District 2-8, according to the Developer's Agreement and state statutes,
should be decertified.
Current Circumstances
Scott County Auditor Cindy Geis recommends that Prior Lake decertify
all remaining TIF districts in the Waterfront Passage Business Office
Park since the city's final bond payment on the business district's
improvements is scheduled to be made on December 1 st of this year
(2006).
The following districts and their initial decertification dates were
confirmed by the County Auditor:
TIF District 2-5 (EM Products) ... 12/31/05
TIF District 2-6 (NBC) ... 09/17/06
TI F District 2-7 (Award Printing) ... 12/31/06
TIF District 2-8 (Hansen) ... 04/04/08
Conclusion
In all of these TIF districts the City's obligation was to provide TIF for
certain eligible expenses and the developer's obligation was to provide a
development for which TIF could be used for the eligible expenses. The
obligations have been met in all these projects. Increment can only be
used to the extent that all eligible expenses are paid for, then, even
though the term of the district may extend longer, it must be decertified
because TIF is not allowed to be collected beyond what is necessary to
pay eligible expenses.
Because we will have an excess TIF fund balance which will be required
to be paid to the County Auditor at the end of the year, it would be
simpler to consolidate all 4 remaining TIF decertifications now rather than
process them one at a time, since only one district would remain eligible
for TIF payments in 2007, and there is no economic advantage to the
City to make that collection since it would have to be refunded to the
County as excess TIF.
A decertification form from the Office of the State Auditor accompanies
the Council resolution. The official decertification date will be 12-31-06.
Upon the final bond payment, Finance Director Ralph Teschner will bring
a resolution to the Council authorizing the balance of TIF funds to be
r:\agenda reports\mar 20 2006\tif district 2-5, 2-6, 2-7, 2-8 decertification agenda report (3-20-06).doc
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remitted to the Scott County Auditor for distribution as excess TI F to all
taxing jurisdictions, including the City.
ALTERNATIVES:
1. Adopt Resolution #06-XX, Authorizing the Decertification of TIF
District 2-5 (EM Products);
Adopt Resolution #06-XX, Authorizing the Decertification of TIF
District 2-6 (NBC);
Adopt Resolution #06-XX, Authorizing the Decertification of TIF
District 2-7 (Award Printing);
Adopt Resolution #06-XX, Authorizing the Decertification of TIF
District 2-8 (Hansen).
2. Deny the resolutions.
3. Defer for a specific reason .
RECOMMENDED
MOTION:
Alternative # 1.
Reviewed by:
~flM.k ~ I,
Frank Boyles, City nager
r:\agenda reports\mar 20 2006\tifdistrict 2-5,2-6,2-7,2-8 decertification agenda report (3-20-06).doc
3
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xxx
RESOLUTION APPROVING THE DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 2-5 OF THE CITY OF PRIOR LAKE.
MOTION BY:
SECOND BY:
WHEREAS: On May 22, 1995, the City of Prior Lake (the "City") created its Tax Increment
Financing District No. 2-5 ("District No. 2-5") within its Project Area No. 2 (the
"Project Area"); and
WHEREAS: As of the date hereof all bonds and obligations to which tax increment from
District No. 2-5 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. 2-5
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. 2-5 as a tax increment district and to no
longer remit tax increment from the District No. 2-5 to the City.
Passed and adopted this 20th day of March, 2006
Hauoen Hauoen
Dornbush Dornbush
Erickson Erickson
LeMair LeMair
Millar Millar
Yes
No
Frank Boyles, City Manager
TIF Dist No. 2-5 Decertification RESOLUTION (3-20-06)
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
CONFIRMATION OF DECERTIFIED TIF DISTRICT
The auditors from the TIP, Investment & Finance Division of the Office of the State Auditor (OSA) are reviewing
our compliance with requirements of the TIP Act relating to decertification of the following TIP district. Please
complete the information requested below in Part A and then forward the form to the County Auditor to be certified
in Part B. Once the information has been completed by both the authorized TIP representative and the County
Auditor, please return the form to the TIF Division of the OSA at the address listed below:
Office of the State Auditor - TIF, Investment & Finance Division
525 Park Street, Suite 500 St. Paul, MN 55103
PART A. To be completed by the TIF authorized representative:
County Auditor/Treasurer's Name:
CiVld':J 6el'~
Date: 3- 2o-0b
;)00 F~~ A~ \N.
County Address: She\\<.oreeJ MN S"S"3/~
County Name: ';;~-tr
TIP Authority Name: Ci~ crf 'Pno...- ~l<.e
TIP District # and Name:_~lI:;:: PI'S fv../Ct" :If ?...5 (~ Przx:luds)
TIP District Type:_~Co~'\IJMI'c.. Dp~ebp h1"~ r TIP Plan Approval Date: rJ\al1:;:l'), \ q q r:;;-
Certification Request Date: tIta~ zlf t ~qqS- CertificationDate:.:)W'\e. 2-4, tqqS-
Required Decertification Date: -11a.~ ? 'J I -;)00(0 DTIP Plan ~Statutory Maximum
(Information to be confirmed by the County Audi!or:)
1. Actual decertification date:
2. Date of first tax increment received:
3. Pinal tax increment distribution date
and amount $
4. Amount of excess tax increment returned to the county, if any $
and date
Signature:
Name and title of TIP authorized representative:
Date:
PART B: To be completed by the County Auditor or representative:
On behalf of the county auditor/treasurer, I certify that the above information, specifically information provided in
questions 1-4, is correct with the following exceptions, if any:
Signature:
Name and title of the county representative:
Date:
Phone:
Exceptions? DNo DYes If yes, please describe below:
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xxx
RESOLUTION APPROVING THE DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 2-6 OF THE CITY OF PRIOR LAKE.
MOTION BY:
SECOND BY:
WHEREAS: On September 19, 1995, the City of Prior Lake (the "City") created its Tax
Increment Financing District No. 2-6 ("District No. 2-6") within its Project Area No.
2 (the "Project Area"); and
WHEREAS: As of the date hereof all bonds and obligations to which tax increment from
District No. 2-6 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. 2-6
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. 2-6 as a tax increment district and to no
longer remit tax increment from the District No. 2-6 to the City.
Passed and adopted this 20th day of March, 2006
Yes
No
Hauaen Hauoen
Dornbush Dornbush
Erickson Erickson
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
TIF Dist No. 2-6 Decertification RESOLUTION (3-20-06)
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
CONFIRMATION OF DECERTIFIED TIF DISTRICT
The auditors from the TIP, Investment & Finance Division of the Office of the State Auditor (OSA) are reviewing
our compliance with requirements of the TIF Act relating to decertification of the following TIF district. Please
complete the information requested below in Part A and then forward the form to the County Auditor to be certified
in Part B. Once the information has been completed by both the authorized TIF representative and the County
Auditor, please return the form to the TIF Division of the OSA at the address listed below:
Office of the State Auditor - TIF, Investment & Finance Division
525 Park Street, Suite 500 S1. Paul, MN 55103
PART A. To be completed by the TIF authorized representative:
County AuditorlTreasurer's Name:
CiVldj 6el'c;
Date: 3- 20-00.
,;;:loa F'e>\A.yaj-t, Ave. \AI.
County Address: Shal<.of'ee, Iv"\t-J $"$'3/"t
County Name: :;~{t-
TIF Authority Name: C i., of 'P Y'I0v- Lt\ ke.
TIFDistrict#andName: -rlr: \),c,,-rV"ict -# ;;)-b (Ne.C Pr-odLAct-2)
TIF District Type: ~. bey. TIF Plan Approval Date: ~e'Mbe....
\4 \qq S-
I
Certification Request Date: ocr 2~ l ~'1? Certification Date: J\Aly \ 8'1 \4 'lh
Required Decertification Date: ~~. ~ 4 I 200'- DTIF Plan [8jStatutory Maximum
(Information to be confirmed by the County Auditor:)
I. Actual decertification date:
2. Date of first tax increment received:
3. Final tax increment distribution date
and amount $
4. Amount of excess tax increment returned to the county, if any $
and date
Signature:
Name and title ofTIF authorized representative:
Date:
PART B: To be completed by the County Auditor or representative:
On behalf of the county auditor/treasurer, I certify that the above information, specifically information provided in
questions 1-4, is correct with the following exceptions, if any:
Signature:
Name and title of the county representative:
Date:
Phone:
Exceptions? DNo DYes If yes, please describe below:
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xxx
RESOLUTION APPROVING THE DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 2-7 OF THE CITY OF PRIOR LAKE.
MOTION BY:
SECOND BY:
WHEREAS: On March 4, 1996, the City of Prior Lake (the "City") created its Tax Increment
Financing District No. 2-7 ("District No. 2_7") within its Project Area NO.2 (the
"Project Area"); and
WHEREAS: As of the date hereof all bonds and obligations to which tax increment from
District No. 2-7 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. 2-7
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. 2-7 as a tax increment district and to no
longer remit tax increment from the District No. 2-7 to the City.
Passed and adopted this 20th day of March, 2006
Yes
No
Hauaen Hauaen
Dornbush Dornbush
Erickson Erickson
I LeMair LeMair
I Millar Millar
Frank Boyles, City Manager
TIF Dist No. 2-7 Decertification RESOLUTION (3-20-06)
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
CONFIRMATION OF DECERTIFIED TIF DISTRICT
The auditors from the TIP, Investment & Finance Division of the Office of the State Auditor (OSA) are reviewing
our compliance with requirements of the TIF Act relating to decertification of the following TIF district. Please
complete the information requested below in Part A and then forward the form to the County Auditor to be certified
in Part B. Once the information has been completed by both the authorized TIP representative and the County
Auditor, please return the form to the TIF Division of the OSA at the address listed below:
Office of the State Auditor - TIF, Investment & Finance Division
525 Park Street, Suite 500 St. Paul, MN 55103
PART A. To be completed by the TIF authorized representative:
County Name: :;~tr"
CiMdj 6et'c;. Date: 3- 20-0(;,
. ;;)00 Fe>U.Y"tt1 Ave. v./.
County Address: Shel\c:.oree, MtoJ $'$'3"1"l
County Auditor/Treasurer's Name:
TIF Authority Name: Cj~ of 'f'noV' L.t\ ke
TIF District # and Name:_11 ~ j)i s1Yic.1" 4l> :)-1 (Aw(}'lrtJ1. 'Py,h'tI'Vl?) ')
TIP District Type: tXon - D~v. TIP Plan Approval Date: Ma..,ch L\ I 14 ~ l:,.
Certification Request Date: tv1.tlV-G(" ~! Iqqk Certification Date: J ull1 \ 8', l qq.~
Required Decertification Date: MPlvvh Lf f '2.00/ DTIF Plan [g]Statutory Maximum
(Information to be confirmed by the County Auditor:)
1. Actual decertification date:
2. Date of frrst tax increment received:
3. Final tax increment distribution date
and amount $
4. Amount of excess tax increment returned to the county, if any $
and date
Signature:
Name and title ofTIF authorized representative:
Date:
PART B: To be completed by the County Auditor or representative:
On behalf of the county auditor/treasurer, I certify that the above information, specifically information provided in
questions 1-4, is correct with the following exceptions, if any:
Signature:
Name and title of the county representative:
Date:
Phone:
Exceptions? DNo DYes If yes, please describe below:
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xxx
RESOLUTION APPROVING THE DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT NO. 2-8 OF THE CITY OF PRIOR LAKE.
MOTION BY:
SECOND BY:
WHEREAS: On April 7, 1997, the City of Prior Lake (the "City") created its Tax Increment
Financing District No. 2-8 ("District No. 2-8") within its Project Area No. 2 (the
"Project Area"); and
WHEREAS: As of the date hereof all bonds and obligations to which tax increment from
District No. 2-8 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. 2-8
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. 2-8 as a tax increment district and to no
longer remit tax increment from the District No. 2-8 to the City.
Passed and adopted this 20th day of March, 2006
Yes
No
Haugen Haugen
Dornbush Dornbush
Erickson Erickson
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
TIF Dist No. 2-8 Decertification RESOLUTION (3-20-06)
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
CONFIRMATION OF DECERTIFIED TIF DISTRICT
The auditors from the TIP, Investment & Finance Division of the Office of the State Auditor (OSA) are reviewing
our compliance with requirements of the TIF Act relating to decertification of the following TIP district. Please
complete the information requested below in Part A and then forward the form to the County Auditor to be certified
in Part B. Once the information has been completed by both the authorized TIP representative and the County
Auditor, please return the form to the TIP Division of the OSA at the address listed below:
Office ofthe State Auditor - TIF, Investment & Finance Division
525 Park Street, Suite 500 St. Paul, MN 55103
PART A. To be completed by the TIF authorized representative:
County Auditor/Treasurer's Name: CiVldj ~el'<;'
County Name:
:;~1r
Date: 3- 20-06
;)00 F'ouY"'f11 Ave. \N.
County Address: Sh~\<.C)Fee, !V\t-J 5"S"'3"7Cl
TIP Authority Name: C i~ of 'P nOlo- Lt:\ l<.e.
TIF District # and Name: llf= Di4tv-icJ:lJ:; 2-g (~seV\.s)
TIP District Type:~. D.ev'. TIP Plan Approval Date:
Certification Request Date:
JuVU! Lf I
A f7'ri \
[1 '11 Certification Date:
if, 2.00<6
Apvll '1, \q~1
Sept.~, 1'1t:f1
Required Decertification Date:
DTIP Plan
[8JStatutory Maximum
(Information to be confirmed by the County Auditor:)
1. Actual decertification date:
2. Date of first tax increment received:
3. Final tax increment distribution date
and amount $
4. Amount of excess tax increment returned to the county, if any $
and date
Signature:
Name and title ofTIF authorized representative:
Date:
PART B: To be completed by the County Auditor or representative:
On behalf of the county auditor/treasurer, I certify that the above information, specifically information provided in
questions 1-4, is correct with the following exceptions, if any:
Signature:
Name and title of the county representative:
Date:
Exceptions? DNo DYes If yes, please describe below:
Phone: