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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Joel Hanson, City Administrator <br /> <br />DATE: September 22, 2017 <br /> <br />RE: Decertification of TIF 3-2 <br /> <br /> <br />Attached is a resolution that decertifies TIF District 3-2. This will release the captured tax <br />base used to pay for various redevelopment projects and make it available for ad valorem <br />taxation. By taking this action at this time, the tax base modification should be reflected in the <br />Truth in Taxation statements to be mailed out this fall. <br /> <br />We will not be closing out the district on our books as we will continue to make debt service <br />payments for the outstanding bonds (we own this debt issue as an investment and it pays a <br />very good rate of interest). We will also remit some TIF overpayment to Ramsey County <br />$86,445 which we will receive our share of that money as excess tax increment. This payment <br />will not be made until 2018. <br /> <br />Another obligation we will need to satisfy is the repayment of the outstanding TIF Notes <br />issued to George Sherman relative to his TIF guarantee payments pursuant to our <br />Development Agreement with him. The principal amount of those notes is just over $200,000 <br />plus accrued interest at three percent from the date the guarantee payments were received <br />(Ehlers is assisting with that calculation and we will also be comparing with George Sherman <br />to make sure we are in agreement.) That payment will not be made at this time. We will also <br />have some “pooling” money left that can be spent outside of the TIF District. The specifics of <br />how to spend that money also do not have to be decided upon at this time. <br /> <br />Here is a quick synopsis of the financial components of the close out: <br /> Fund Balance – 12/31/16 $2,199,675 <br /> Estimated 2017 Increment & Interest $ 590,000 <br /> Available Fund Balance $2,789,675 <br /> Less: <br /> Outstanding Debt Payments $1,729,420 <br /> County Payment $ 86,445 <br /> TIF Note Repayments (est) $ 275,000 <br /> Amount Available for Pooling $ 698,810 <br /> <br />As stated earlier, some additional details will be worked out over the next year or so. For <br />tonight’s action, staff is recommending the Council adopt the attached resolution <br />Decertifying TIF District 3-2 and authorize Ehlers, Inc. to assist in the close-out of the <br />district.