10-12-2016 Workshop Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL WORKSHOP OCTOBER 12, 2016 that because it is a housing district, it does not need to be decertified at that time. She stated that any TIF -eligible housing projects outside the district, but within Redevelopment Project Area #1 can be paid from this district through 2029. She noted that this district is projected to have an ending balance of $1,194,592 when the district expires in 2029. The City Administrator also noted that The Lodge does not share in the increments generated by the Garden Terrace Addition. TIF District 5-1 (St. Jude Medical) currently has multiple outstanding obligations. Ms. Vogt explained that by the end of 2016 there will be sufficient funds available to pay the interfund loan off, but stated the City could do some different things here instead of paying off the interfund bonds early. She stated that the other obligations in this district are the 2015A bond and future PAYGO Note to St. Jude. She noted that the City will need to keep an eye on the amount of administrative costs for this district as time goes on. TIS District 6-1 (Masterpiece Homes) currently has an interfund loan to the General Fund outstanding. Ms. Vogt stated that construction on the last few homes in this development should be started this year, as required by the developer's agreement. She noted this loan is projected to be paid in full by 2030, which is early, at which time the district should be decertified. She explained that administrative costs need to be reduced in future years since they currently exceed the allowed 10 percent. Ms. Vogt explained that there are statutory tests for tax increment financing to make sure cities are not spending more than the budget allows and no districts are generating excess increment. She stated there are four year rules for TIF districts where statute requires that certain activities, such as demolition or site improvements, must have taken place on the parcels within four years. She explained that District 5-1 got their timeline extended and there will not be an issue complying, and the rest of the districts are past the four years. Ms. Vogt explained that for pre -1990 districts, cities have five years (districts certified after June 30, 2003 and before April 20, 2009 were extended to 10 years during the recession) to complete certain things to ensure that the project will happen, such as sell bonds, etc. She explained that all of the Little Canada TIF Districts have passed. She suggested that the Council look at any budget modifications to see if anything needs to be changed, but she has no recommendations for changes, and the City is in good shape.