08-13-2025 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fisher and Members of City Council FROM: Ben Harrington, Community Development Director Sam Magureanu, Finance Director DATE: August 13, 2025 RE: Decertification of TIF 7-2 ACTION REQUESTED Adopt resolution decertifying TIF District 7-2 and authorizing staff to close-out of the district. BACKGROUND – 7-2 TIF CREATION On November 28, 2018, the City Council approved the establishment of Tax Increment Financing District No. 7-2 with Bix Produce Company. The project consisted of the acquisition of the approximately 207,000 square-foot (SF) Slumberland distribution facility located in the SE quadrant of I-35E and I-694 on two parcels of land, and an Economic Development TIF District was approved to facilitate the expansion of the company’s food processing and distribution capabilities and accommodate growth. Ehlers prepared the TIF Plan with a pay-as-you-go interfund note through 2029. Those obligations were met in August of 2023. BACKGROUND – TIF DECERTIFICATION As the obligations were met in 2023, staff reached out to Ehlers to understand options with the TIF district remaining open despite obligations being met. Based on analysis from Ehlers and internal discussions, staff is recommending decertifying the district because: • The district no longer has outstanding obligations o Previous guidance from the Office of the State Auditors is to close a district once all in-district obligations are paid • The five-year rule (which allows the city to make adjustments to obligations within 5- years) passed on January 28, 2025. The window for additional in-district obligations has passed Attached is a resolution that decertifies TIF District 7-2. This will release the captured tax base used to pay for various redevelopment projects and make it available for ad valorem taxation. By taking this action at this time, the tax base modification should be reflected in the Truth in Taxation statements to be mailed out this fall.