12-18-2019 Workshop & Council Packets

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CAPITAL PROJECT FUNDS-TIF Overview Capital Project funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities. The City of Little Canada has many Capital Project funds. The Capital Project funds are classified in two categories (Capital Project Funds-Other and Capital Project Funds-TIF. Capital Project Funds-TIF •TIF 2-1 Kandice Heights (Fund 464) •TIF 3-2 (Fund 440) •TIF 3-3 The Lodge (Fund 441) •TIF 5-1 St Jude (Fund 460) •TIF 6-1 Masterpiece Homes (Fund 470) •TIF 7-1 Suite Living (Fund 471) •TIF 7-2 Bix Produce (Fund 472) Budgets are adopted on an annual basis for the Capital Projects Funds-TIF. The TIF budgets are based on the respective TIF Plans and Development Agreements. A summary of the TIF Funds are as follows: TIF 2-1 (Kandice Heights) (Fund 464): TIF 2-1 was decertified in 2017. This TIF district is a “pre-1990” district, which means that the remaining TIF dollars in this fund may be used to assist in development inside or outside the boundaries of the TIF district. 90% of the funds must be used on costs related to the demolition or rehabilitation of a blighted building. There are no outstanding obligations in this district. TIF 3-2 (Rice/Little Canada Road) (Fund 440): TIF 3-2 was decertified in 2017. As per State Statute requirements, the excess increment for this TIF district was returned to the County in 2019. A portion of this excess increment will be returned to the City but cannot be deposited into the TIF 3-2 Fund. This excess increment will be deposited in the General Capital Improvements Fund (400), which is where excess Increment has been deposited in the past. The remaining funds in TIF 3-2 will be spent on the Little Canada Paver Road Project that will be constructed in 2020. The developer paid TIF shortfall repayments throughout the life of the TIF district. When a payment was received a TIF Shortfall Note was issued by the EDA to the Developer. Since the district is decertified, these Notes need to be repaid to the developer. The City is waiting for the Developer to confirm the repayment of these funds before the funds are released. The TIF attorney and financial advisor are assisting the repayment of these funds. The repayment is shown under developer shortfall repayment. TIF 3-3 (The Lodge) (Fund 441): Required Decertification Date: 12/31/2029 District Type: Housing District TIF 3-3 was established in 2002 to facilitate the construction of: •35-unit (approximate number) multi-family residential rental senior housing addition to the existing senior housing facility known as “Garden Terrace” designated for families of low and moderate income. •78-unit (approximate number) multi-family residential rental senior housing facility known as the “Village Square of Little Canada” designed for persons or families of low and moderate income and over approximately 14,000 square feet of commercial/retail space. (This information is from the TIF Plan completed by Ehlers in 2016). 79