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STAFF REPORT <br />TO: Mayor Fisher and Members of City Council <br />FROM: Ben Harrington, Community Development Director <br />Sam Magureanu, Finance Director <br />DATE: September 10, 2025 <br />RE: Decertification of TIF District 5-1 <br />ACTION TO BE CONSIDERED: <br />Motion to adopt a resolution decertifying Tax Increment Financing (TIF) District 5-2 and <br />authorize staff to close out the district. <br />BACKGROUND: <br />The city entered into a development agreement with St. Jude Medical as of June 2, 2008 and <br />created a district to facilitate the development of approximately 10 net acres located off of <br />Rice Street and County Road B2 by St. Jude Medical and to facilitate the construction of <br />various public improvements located at the corner of Highway 36 and Rice Street. <br />Since the district has reached its statutory maximum duration, the district will need to decertify <br />on 12/31/2025. Attached is a resolution that decertifies TIF District 5-1. This will release the <br />captured tax base used to pay for various redevelopment projects and make it available for ad <br />valorem taxation. By taking this action at this time, the tax base modification should be <br />reflected in the Truth in Taxation statements to be mailed out this fall and increase our tax <br />capacity for taxes payable in 2026. <br />Note that we will not be closing out the district on our books as we will continue to report until <br />the balance sheet goes to zero. <br />Obligations <br />This district currently has the following outstanding obligations: <br />•$1,335,000 G.O. Refunding Bonds, Series 2015A (refunded the 2008A bonds) – This <br />bond will be paid in full on February 2026. The TIF has sufficient funds to meet this <br />obligation. <br />•$475,757 PAYGO Note to St. Jude Medical (subordinate to all other obligations) – The <br />City anticipates that all the remaining balance, after the G.O. Refunding Bonds are paid <br />off in February of 2026, will be sent to St. Jude toward the outstanding PAYGO note, <br />approximately $222,000. <br />STAFF RECOMMENDATIONS: <br />Staff is recommending the Council adopt the attached resolution decertifying TIF District 5-2 <br />and authorize staff to close-out of the district.