HomeMy WebLinkAbout09 19 2022 TIF Call for PHCall for TIF Public Hearing
Prior Lake City Council
September 19, 2022
1
Request
Resolution Calling for Public Hearing to consider:
Enlarging Municipal Development District No. 1
Modifying the development program
Establishing a TIF district
Adopting a TIF Plan
2
2
Background
CC approved a Preliminary PUD Plan on 5/2/22 for construction of a five-story mixed-use building at 4662, 4664, and 4666 Dakota Street SE
Market rate residential rental units, street front restaurant, rooftop deck for restaurant customers, rooftop deck for tenants, surface parking, and two levels of underground parking
Prior Lake B Squared Ventures, LLC, has applied for redevelopment TIF to assist with eligible project costs
Northland Securities completed a review of the project and deemed it eligible to be considered as a redevelopment TIF district
3
3
What Is TIF?
New building = value and property taxes
A “base” property valuation is established
Base value tax revenues remain with all taxing authorities
Increases in the assessed value above the base value over the life of the district are called the “increment”
The increment is temporarily captured and retained within a TIF district account and used to reimburse the developer for eligible costs identified in the TIF plan
When the obligations are satisfied, the TIF district is decertified, and the new incremental value is combined with the base value
4
4
Pay-Go TIF
5
5
How Can TIF Increment Be Used?
Increment can be used to reimburse the developer for TIF-eligible costs, examples include:
Land / building acquisition
Demolition and relocation
Environmental / geotechnical studies and correction
Site improvements (clearance, earthwork, etc.)
Public improvements (sidewalks, streets, utilities)
Parking ramps and lots
TIF administrative costs / professional fees
6
6
Recommendation
Several steps need to occur prior to CC consideration of a TIF Plan, including preparation and review of a draft TIF plan, notifications to County Commissioners, school district and
county staff, and publication of a public hearing notice
Resolution establishes a PH date of 11/7/22 and authorizes the City Manager to provide the notifications
A TIF Plan containing detailed information about the project and analysis of how the project complies with State Statute will be completed and presented to the CC during the public hearing
Scheduling a public hearing does not obligate the CC to approve the TIF request
Motion and second to approve a resolution calling for a public hearing on the proposed enlargement of Municipal Development District No. 1 and the proposed adoption of a modification
to the development program related thereto, and the proposed establishment of Tax Increment Financing District No. 1-6 (Prior Lake Lofts) within Municipal Development District No. 1
and the proposed adoption of a tax increment financing plan relating thereto
7
7
Questions?
8
8